Global Markets:
- Asian stock markets: Nikkei up 0.65 %, Shanghai Composite fell 0.15 %, Hang Seng rose 0.75 %, ASX 200 rallied 0.50 %
- Commodities: Gold at $1245 (-0.15 %), Silver at $16.44 (-0.10 %), WTI Oil at $49.55 (-0.30 %), Brent Oil at $50.35 (-0.35 %)
- Rates: US 10 year yield at 1.74, UK 10 year yield at 1.27, German 10 year yield at 0.08
News & Data:
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index May: 116.8 (prev. 113.2)
- Australia AiG Perf of Construction Index May: 46.7 (prev. 50.8)
- UK BRC LFL Retail Sales Monitor (YoY) May: 0.5% (est 0.3%, prev -0.9%)
- New Zealand ANZ Truckometer Heavy (MoM) May: -1.7% (rev. prev. -2.6% from -2.4%)
- Fed's Yellen: Still expects gradual hikes
- Fed's Yellen: Labour market has been positive, slack almost eliminated
- Yellen: Brexit could have impact on US outlook
- Yellen: Inflation will move to target unless oil resumes declines and USD strengthens substantially
- Yellen: Data is meaningful only if it changes the medium/longer-term outlook — RTRS
- YouGov poll for the Time shows 43% remain, 42% leave in Brexit vote — RTRS
Markets Update:
EUR/USD has consolidated in a 1.1350-70 range overnight, with flows being light. Support is seen at 1.1325 and 1.1280, while resistance lies at 1.14 and 1.1480. GBP/USD was highly volatile in Asia. It spiked from 1.4480 to 1.4656 earlier, despite no news that could have caused the move. Liquidity is likely to become worse as we are heading towards the Brexit vote on June 23rd, so expect high volatility in the GBP pairs.
USD/JPY continues its recovery since it reached a low of 106.35 on Friday. Overnight, it traded up to 107.90 and resistance is next seen at 108.20. AUD/UD is trading near the session high at 0.7380 as traders are waiting for the RBA rate decision. The central bank is expected to keep rates unchanged.
NZD/USD consolidated in a 0.6890-0.6925 range overnight, while USD/CAD traded between 1.2810 and 1.2840.
Upcoming Events:
- 06:00 BST – Japanese Leading Index
- 07:00 BST – German Industrial Production
- 07:45 BST – French Trade Balance
- 10:00 BST – Euro Zone GDP
- 15:00 BST – Canadian Ivey PMI
- 21:35 BST – US API Weekly Crude Oil Stock
