Global Markets:
- Asian stock markets: Nikkei down 0.15 %, Shanghai Composite fell 0.30 %, Hang Seng declined 0.60 %, ASX 200 lost 0.50 %
- Commodities: Gold at $1274 (-0.10 %), Silver at $17.35 (+0.18 %), WTI Oil at $46.10 (-0.30 %), Brent Oil at $47.45 (-0.35 %)
- Rates: US 10 year yield at 1.73, UK 10 year yield at 1.39, German 10 year yield at 0.12
News & Data:
- Australia Consumer Inflation Expectation (May): 3.2% (prev 3.6%)
- Japan BoP Current Account Balance (Mar): JPY 2980.4 Bln (exp JPY 2965.6 Bln prev JPY 2434.9 Bln)
- Japan BoP Trade Balance (Mar): JPY 927.3 Bln (exp JPY 906.7 Bln prev JPY 425.2 Bln)
- Japan Bank Lending (YoY) Apr: 2.2% (prev 2.0%)
- New Zealand Business NZ Manufacturing PMI (Apr): 56.5 (prev 54.7)
- New Zealand Food Prices (MoM) Apr: 0.3% (prev 0.5%)
- UK RICS House Price Balance (Apr): 41% (exp 35% rev 42%)
- PBoC Fixes Yuan At 6.4959 (prev 6.5209)
- BoJ Gov Kuroda Says Can Ease Policy `Substantially' If Necessary — RTRS
- Kuroda: Japan's Economy Has Continued Moderate Recovery Trend — RTRS
- Kuroda: Large Downside Risks Present
- Kuroda: Unpredictability Of World Economy High, Risks Are Large — BBG
- Recap: Chinese Vice Premier Zhang: China Will Meet Economic Growth Goal This Year — ET
- Oil prices fall as Canadian oil sands fields gradually return – RTRS
- Dollar hamstrung by growth woes, fails to clear hurdle vs yen – RTRS
Markets Update:
The US Dollar regained some strength against most major currencies overnight. EUR/USD fell from 1.1445 to a low of 1.1420 ahead of the NY close and traded in a 1.1420-30 range in Asia. Techs remain mixed, but a break above 1.15 would likely accelerate momentum and push the pair towards last month's high at 1.1620.
GBP/USD consolidated between 1.4433 and 1.4452 overnight. The Pound is likely to stay under pressure ahead of the Brexit vote next month. Support is seen at 1.4380, while resistance lies at 1.4540 and 1.4630.
USD/JPY rallied to 108.70 in Asia, up 50 pips from the open. 109.40 and 110.00 are the major resistance levels to watch.
The commodity currencies declined overnight. AUD/USD fell from 0.7380 to 0.7330, while NZD/USD traded in a 0.6810-35 range. USD/CAD rose from 1.2840 to 1.2865.
Upcoming Events:
- 07:00 BST – German WPI
- 07:45 BST – French CPI
- 08:30 BST – Swedish CPI
- 09:00 BST – Norwegian GDP
- 10:00 BST – Norges Bank Rate Decision
- 10:00 BST – Euro Zone Industrial Production
- 12:00 BST – Bank of England Rate Decision
- 12:00 BST – Bank of England Inflation Report
- 12:45 BST – Bank of England Governor Carney speaks
- 13:30 BST – US Initial Jobless Claims
- 13:30 BST – Canadian New Housing Price Index
- 16:00 BST – FOMC Member Mester speaks
- 16:45 BST – FOMC Member Rosengren speaks
- 18:30 BST – FOMC Member George speaks
- 23:45 BST – New Zealand Retail Sales
