United States, Europe, and Turkey: Each Spotlight! ~ Highlights on April 3 and Event Schedule ~

Yesterday, policy rates and statements were released in Australia. The decision was to hold steady. The statement was as expected and dovish, but the Australian dollar was sold more than anticipated. The pound has risen following Prime Minister May’s remarks.

◎ Today's Highlights

1) U.S.-China ministerial trade talks

Starting today, ministerial-level U.S.-China trade talks resume in Washington. The U.S.-Japan trade talks are also scheduled for April 15-16.

Attention is on whether the trade talks proceed smoothly or encounter difficulties.

2) U.S. indicators and important speeches

The recent ISM manufacturing index showed a strong result, pushing USD/JPY up to around 111.50. Today, the ISM non-manufacturing index and the ADP employment report are released. There are also expected speeches by key officials. Between 21:00 and 00:00, USD movement is likely to be active.

3) Turkish indicators and European indicators

Today European indicators are concentrated. Services PMI and Composite PMI will be released. There was an instance on the 1st where some releases came out 10 minutes early. If the results remain weak today as well, the euro may search for a lower level.

In Turkey, the CPI (Consumer Price Index) will be released. Attention is focused on inflation rising close to 20%. The lira is in a precarious situation. Today’s Turkish CPI could trigger another Turkey shock.

For more on the Turkish lira, please see below↓↓↓

Will there be another Turkey shock on Monday, April 1st? Watch out for a gap !!

4) UK Parliament and the Brexit deadline

In the UK Parliament on April 1st, all Brexit alternative arrangements were rejected. There is still no decision on any Brexit plan or Brexit alternatives. To extend the Brexit deadline to May 22, the EU side requires passage of a Brexit plan.

Prime Minister May indicated yesterday that she would propose a short-term extension of the Brexit deadline.

There are rumors that a revote on the Brexit plan could occur today or tomorrow. There is also information that the Brexit alternative plan with fewer votes may be put to a vote again.

Prime Minister May is set to meet with Labour Party leader Corbyn to seek cooperation.

With information being mixed, headlines should be watched closely regarding the UK and the pound.

◎ Today's Economic Event Schedule

April 3 (Wednesday)

U.S.-China ministerial-level trade talks(Washington)

09:30 AUD Trade balance / Retail sales

10:45 CNY Caixin services PMI

15:30 SEK Sweden services PMI

16:00 TRYTurkey CPI (Consumer Price Index)

16:45 EUR Italy services PMI

16:50 EUR France composite & services PMI

16:55 EURGermany composite & services PMI

17:00 EUR Eurozone composite & services PMI

17:30 GBPServices PMI

18:00 EUR Retail sales

21:15 USDADP employment statistics

21:30 USD Boston Fed President, Atlanta Fed President, and Richmond Fed President speeches

22:45 USD Composite & services PMI

23:00 USDISM Non-Manufacturing PMI

23:30 USD Crude oil stocks

April 4 (Thursday)

06:00 USD Chicago Federal Reserve President speech