Global Markets:
- Asian stock markets: Nikkei gained 0.50 %, Shanghai Composite rose 0.30 %, Hang Seng rallied 0.45 %, ASX 200 up 0.15 %
- Commodities: Gold at $1288 (-0.30 %), Silver at $17.50 (-0.10 %), WTI Oil at $49.80 (-0.35 %), Brent Oil at $50.40 (-0.50 %)
- Rates: US 10 year yield at 1.66, UK 10 year yield at 1.26, German 10 year yield at 0.06
News & Data:
- Japan Manufacturers Index June: 3 (prev. 2)
- Japan Non-Manufacturers Index June: 17 (prev. 19)
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index Jun-21: 118.8 (prev. 116.4)
- Australia House Price Index (QoQ) Q1: -0.2% (est. 0.80%, prev. 0.20%)
- Australia House Price Index (YoY) Q1: 6.8% (est. 7.50%, prev. 8.70%)
- RBA Minutes: Leaving Rates On Hold in June Was Consistent With Sustainable Growth; Inflation Expected to Remain Low for Some Time
- RBA Minutes: Appreciation of AUD could complicated adjustment of economy
- Japan FinMin Aso: Will not intervene in FX market easily
- ORB/Telegraph Poll shows 53% Remain, 46% Leave
- Natcen poll shows 53% Remain, 47% Leave
- YouGov/Times poll shows 42% Remain, 44% Leave, 9% Don't Know, 4% Would Not Vote
Markets Update:
The Pound consolidated after rallying more than 2 % yesterday, one of its largest intraday gains in several years. GBP/USD started the day in Asia around 1.4630 and rallied to a high of 1.4695. It ran out of momentum there and fell back to 1.4640 and was caught in a 1.4640-70 range for the rest of the session. With only two more days before the Brexit vote, volatility will remain at extreme levels and sudden moves like yesterday's 100 pips decline in a minute, will be common.
EUR/USD traded in 1.1306-43 range in Asia. The currency initially benefited from the Pound's strength, but reversed its gains in yesterday's EU session. USD/JPY failed to benefit from the risk-on sentiment as well, as it quickly filled the weekend gap and finished the day at 103.85. In Asia, it extended losses to 103.60.
Upcoming Events:
- 07:00 BST – Swiss Trade Balance
- 10:00 BST – German ZEW Economic Sentiment
- 10:00 BST – Euro Zone ZEW Economic Sentiment
- 11:00 BST – UK CBI Industrial Orders
- 13:55 BST – US Redbook
- 14:00 BST – ECB President Draghi speaks
- 15:00 BST – Fed Chair Yellen speaks
- 19:30 BST – FOMC Member Powell speaks
