Global Markets:
- Asian stock markets: Nikkei up 0.90 %, Shanghai Composite gained 0.20 %, Hang Seng rose 0.50 %, ASX 200 rallied 0.10 %
- Commodities: Gold at $1204 (-1.00 %), Silver at $1.98 (-1.80 %), WTI Oil at $49.38 (+0.10 %), Brent Oil at $49.90 (-0.10 %)
- Rates: US 10 year yield at 1.85, UK 10 year yield at 1.43, German 10 year yield at 0.14
News & Data:
- Japan Retail Sales YoY (Apr): -0.80% (est -1.20%, prev -1.0%)
- Japan Retail Sales MoM (Apr): 0.0% (est -0.60%, prev 1.5%)
- Australia HIA New Home Sales MoM (Apr): -4.70% (prev 8.90%)
- Australia Inventories SA QoQ (Q1): 0.40% (est 0.0%, prev -0.40%)
- Australia Company Operating Profit QoQ (Q1): -4.70% (est 0.40%, prev -2.80%)
- Yuan reference rate set at 6.5784 (vs 6.5490)
- PBOC weakens yuan fixing to the lowest level since Feb 2011 –BBG
- Fed's Bullard says global markets seem well-prepared for summer rate hike – RTRS
- Dollar/yen hits one-month high after Yellen builds rate hike expectations – RTRS
- Asia shares slip, dollar firm after Yellen's hike remarks – RTRS
CFTC Positioning Data:
- EUR short 38K vs 23K short prior week
- GBP short 33K vs. 38K short prior week
- JPY long 22K vs 59K long prior week
- CAD long 20K vs 23K long prior week
- CHF long 4K vs 4K long prior week
- AUD 0.1K long K vs. 25K long prior week
- NZD long 4.6K vs 7K long prior week
Markets Update:
The US Dollar extended gains overnight, as Asia reacted to the hawkish remarks from Fed Chair Yellen on Friday. EUR/USD started the new trading week around 1.1115 and fell to a low of 1.1097. GBP/USD opened at 1.4605 and consolidated in a 1.4600-30 range. USD/JPY had the largest move overnight, as it rallied from 110.35 at the open to 111.02 so far.
AUD/USD started the day at 0.7180 and fell to 0.7150 later in the session. NZD/USD followed it lower and reached 0.6675 in Asia, but was able to bounce from there and is now basically unchanged on the day. Meanwhile, USD/CAD rallied from 1.3020 to 1.3090.
Upcoming Events:
- 07:45 BST – French GDP
- 09:00 BST – Italian PPI
- 10:00 BST – Euro Zone Consumer Confidence
- 13:00 BST – German CPI
The Week Ahead:
Tuesday, May 31th
- 00:30 BST – Japan Unemployment Rate
- 00:50 BST – Japan Industrial Production
- 02:00 BST – New Zealand ANZ Business Confidence
- 02:30 BST – Australian Current Account
- 07:00 BST – German Retail Sales
- 07:45 BST – French CPI
- 08:55 BST – German Unemployment Rate
- 10:00 BST – Italian CPI
- 10:00 BST – Euro Zone CPI
- 10:00 BST – Euro Zone Unemployment Rate
- 13:30 BST – Canadian GDP
- 13:30 BST – US Personal Spending
- 13:30 BST – US Personal Income
- 14:45 BST – US Chicago PMI
- 15:00 BST – US CB Consumer Confidence
Wednesday, June 1st
- 00:30 BST – Australian AIG Manufacturing Index
- 02:00 BST – Chinese Manufacturing PMI
- 02:30 BST – Australian GDP
- 02:45 BST – Chinese Caixin Manufacturing PMI
- 06:45 BST – Swiss GDP
- 08:15 BST – Swiss Retail Sales
- 08:45 BST – Italian Manufacturing PMI
- 08:50 BST – French Manufacturing PMI
- 08:55 BST – German Manufacturing PMI
- 09:00 BST – Euro Zone Manufacturing PMI
- 09:30 BST – UK Manufacturing PMI
- 14:45 BST – US Manufacturing PMI
- 15:00 BST – US ISM Manufacturing PMI
- 21:35 BST – US API Weekly Crude Oil Stock
Thursday, June 2nd
- 02:30 BST – Australian Retail Sales
- 02:30 BST – Australian Trade Balance
- 09:30 BST – UK Construction PMI
- 12:45 BST – ECB Rate Decision
- 13:15 BST – US ADP Nonfarm Employment Change
- 13:30 BST – ECB Press Conference
- 13:30 BST – US Initial Jobless Claims
- 14:00 BST – Bank of England Governor Carney speaks
- 15:45 BST – Bank of Canada Governor Poloz speaks
- 15:00 BST – US Crude Oil Inventories
Friday, June 3rd
- 00:30 BST – Australian AIG Services Index
- 02:45 BST – Chinese Caixin Services PMI
- 08:45 BST – Italian Services PMI
- 08:50 BST – French Services PMI
- 08:55 BST – German Services PMI
- 09:00 BST – Euro Zone Services PMI
- 09:30 BST – UK Services PMI
- 10:00 BST – Euro Zone Retail Sales
- 13:30 BST – US NFP
- 13:30 BST – US Unemployment Rate
- 13:30 BST – US Average Hourly Earnings
- 13:30 BST – US Trade Balance
- 13:30 BST – Canadian Trade Balance
- 15:00 BST – US ISM Non-Manufacturing PMI
