Global Markets:
- Asian stock markets: Nikkei down 0.70 %, Shanghai Composite fell 0.05 %, Hang Seng declined 0.60 %, ASX 200 lost 1.50 %
- Commodities: Gold at $1258 (-0.15 %), Silver at $16.50 (-0.40 %), WTI Oil at $48.90 (-0.30 %), Brent Oil at $51.35 (-0.30 %)
- Rates: US 10-year yield at 2.30, UK 10-year yield at 1.20, German 10-year yield at 0.53
News & Data:
- Australia PPI q/q 0.5 % vs 0.6 % expected
- Australia PPI y/y 1.7 % vs 1.3 % previous
- Japan CPI 0.4 % vs 0.4 % expected
- Japan Unemployment Rate 2.8 % vs 3.0 % expected
- Japan Retail Sales y/y 2.1 % vs 2.3 % expected
- Japan Household Spending m/m 1.5 % vs -0.1 % expected
- Japan Household Spending y/y 2.3 % vs 0.6 % expected
- Asian shares pull back after U.S. techs knocked off highs – RTRS
Markets Update:
The US Dollar recovered overnight against most other major currency pairs. Risk appetite decreased, with stocks declining and the Japanese Yen catching a bid.
The focus of traders was on the Swiss Franc. The CHF pairs had a large move in the Asian session, with no fundamental reason behind it. USD/CHF rallied to a high of 0.9720, while EUR/CHF made it to 1.1360. There were rumours of the SNB being active in the market earlier this week.
EUR/USD consolidated in a 1.1670-90 range overnight. Key support is now seen at 1.1620, where the pair should run into decent demand. Meanwhile, GBP/USD failed to sustain momentum above 1.31 and reached a low of 1.3060 overnight.
USD/JPY suffered from the risk-off sentiment and fell to 110.90. Support is seen at 110.80 and 110.20, while resistance lies at 111.30 and 111.70.
The commodity currencies declined as well. AUD/USD reached a low of 0.7950. While the outlook remains positive, the pair is somewhat overbought in the short-term and could see another test of 0.79 soon.
Upcoming Events:
- 07:45 BST – French CPI
- 10:00 BST – Euro Zone Consumer Confidence
- 13:00 BST – German CPI
- 13:30 BST – US GDP
- 13:30 BST – Canadian GDP
- 15:00 BST – US Michigan Consumer Sentiment
