Themes

· General mood is “risk off”

· U.S. Q1 Advance GDP much weaker at -1.4% from +1.1% talk

· U.S. Initial Claims as expected at 180k

What’s Moving

U.S. GDP printed much worse than expected. The currency markets stalled initially, with U.S. equities screaming higher on the thinking that the Fed might be less likely to hike interest rates by as much. After the initial move in stocks, currency players shrugged it off, then moved back to buy the Dollar.

With little other news out on the day (U.S. Initial Claims were exactly as expected), the market continued to buy the Dollar over the course of the day. Some buying of oil and gold was also seen.

Thoughts

Its Friday in Asia and Japan is closed for the Showa Day public holiday. Expect a very quiet session in local trade today. Asian session data today sees:

· Australian PPI (E: +1.5%)

· Australin Private Sector Credit (E: +0.6%)