Morning Juice – US Session Prep

Good Morning, traders! It’s Wednesday April 23rd.

Sentiment
The dollar declined, erasing early gains that came as an apparent easing in Trump’s threat to fire Powell and a softening stance on his trade war with China triggered demand for higher-risk currencies. Longer-dated Treasuries rose, recovering from selling on worries about the Fed’s continued independence.

Trump said he plans to be very nice to China in any trade discussions and that tariffs will drop if the two countries can reach a deal, a sign he may be backing down from his hard stance on China amid market volatility.

The 10-Yr Treasury yield dropped 6 BPS to 4.34%. Treasury gains were led by longer-dated maturities, with the 30-Yr yield declining 9 BPS to 4.77%. Investors await auctions for two-year and five-year notes Treasuries later in the day to gauge demand from foreign buyers

Docket

09:45 ET
US S&P Manufacturing PMI Flash Forecast 49, Previous 50.2 Range 50 / 48
US S&P Services PMI Flash Forecast 52.6, Previous 54.4 Range 54 / 51
US S&P Composite PMI Flash Forecast 52, Previous 53.5 Range 54.6 / 51.5

10:00 ET
US New Home Sales – Units Forecast 0.685M, Previous 0.676M Range 0.709M / 0.65M

10:30 ET
EIA Crude Oil Inventories Forecast 1.55M, Previous 0.515M Range 4M / -0.4M
EIA Distillate Inventories Forecast -0.65M, Previous -1.851M Range 1.5M / -2M
EIA Gasoline Inventories Forecast -1.4M, Previous -1.958M Range 0.5M / -3M

14:00 ET
Fed’s Beige Book

Speakers & Events
09:00 ET
Fed’s Goolsbee Speaks. Opening remarks at Economic Stability Summit. Text and Q&A TBD

09:30 ET
Fed’s Musalem Speaks. Opening remarks at Fed Listens event. Text and Q&A TBD

09:35 ET
Fed’s Waller Speaks. Opening remarks at Fed Listens event. Text expected. No Q&A

12:00 ET
ECB’s Knot speaks at PIIE

13:15 ET
BoE’s Gov. Bailey Speaks at Institute of International Finance. No text. Q&A expected

14:00 ET
BoE’s Breeden Speaks at IMF on Monetary Policy and Financial Stability In Inflationary Times. No text. Q&A expected

ECB’s Villeroy speaks at Atlantic City Council in DC. TBD

14:35 ET
Fed’s Musalem gives informal closing remarks at Fed Listens event

15:15 ET
ECB’s Lane speaks at IIF. TBD text and Q&A

15:45 ET
ECB’s Cipillone speaks on tokenization

RBA’s Gov. Bullock speaks on tokenization and financial system at IMF Spring Meetings