CDC relaxes guidance for fully vaccinated people
The CDC is out with new guidance for fully vaccinated people. They say that those vaccinated can unmask when
- Walking, running, hiking or biking e outdoors alone or with members of household
- With small outdoor gatherings with a mix of vaccinated and unvaccinated people
- Dining at outdoor restaurants with multiple households
The news represents good news on the Covid front but falls short of fully recommending unmasking in public places.
The White House Covid advisor Slavitt is without saying that
- nearly 30 million Covid vaccine doses will be released this week
- AstraZeneca vaccine is very safe and effective
- The rate of new code cases in the US showing hopeful decline
USD/JPY hits a session high
It’s tough to find big movers in the FX market but yen crosses are making headway. USD/JPY edged above the earlier session high to a one-week high. It’s is up 37 pips to 108.44.
The latest data slate had little impact with the focus narrowing on the Fed. Some support is coming from the bond market, where US 10-year yields are up 2 bps to 1.588%. I could see a further climb in the day ahead on Fed jitters and that would keep USD/JPY bid.
Technically, there’s an ongoing turn in USD/JPY but it’s running into the early March lows, which should offer some modest resistance.
OPEC+ won’t bother with formality
There was some speculation that OPEC could slow its return to production but even with demand slowing in India and Japan, it’s holding up better than anticipated and accelerating in the US.
The next meeting will be in early June.
WTI touched a session high at $62.84 a short time ago in a spike but it’s back to $62.49, up about 1% on the day.
Update: Reuters reports, citing a source, that the preference is to keep output plans along existing lines.
BOE enters into a facility with BIS to ensure the provision of sterling liquidity during any future periods of market stress
Just one to take note of but I don’t think we’re seeing any funding issues with regards to the pound at the moment and I certainly don’t anticipate to see such drastic shortages in the future as well. But it is what it is. From the BOE:
Under the terms of the facility, the BoE will provide collateralised short-term Sterling liquidity to the BIS. The BIS may use the facility to provide Sterling liquidity to their eligible existing central bank customers.
Together with the swap lines the BoE has with a number of central banks, this new facility will provide a further liquidity backstop in Sterling to help ease any potential future strains in funding markets.
The full release can be found here.
Asian equities more subdued in trading today
The Topix also closes down by 0.8% as Japanese equities stay rather sluggish despite gains in Wall Street overnight. Elsewhere, the Hang Seng is up 0.1% while the Shanghai Composite is down 0.1% ahead of the closing stages.
The 100-day moving average for the Nikkei holds close to 28,600 and that will be one to watch this week in case Japanese stocks remain more sluggish for the time being.