Global Markets:
- Asian stock markets: Nikkei up 1.95 %, Shanghai Composite gained 0.50 %, Hang Seng rose 0.70 %, ASX 200 gained 0.30 %
- Commodities: Gold at $1321 (+0.30 %), Silver at $18.10 (+1.20 %), WTI Oil at $48.20 (+0.75 %), Brent Oil at $49.50 (+0.50 %)
- Rates: US 10 year yield at 1.47, UK 10 year yield at 0.95, German 10 year yield at -0.12
News & Data:
- Japan Retail Sales (MoM) May: 0.0% (est. 0.10%, prev. -0.10%)
- Australia HIA New Home Sales (MoM) May: -4.4% (prev. -4.70%)
- Fed's Powell Says Brexit Vote Has Intensified Downside Risks Globally, With Potential New Headwinds For The U.S. And Other Countries – RTRS
- Fed’s Powell: Fed Ready To Act If Funding Pressures Mount, Recent US Data Has Been Mixed, Incoming Data Indicates A Rebound
- Japan PM Abe: Told Aso to watch markets closely; wants BOJ to provide market liquidity and intermediary functioning
- NZ FinMin English: RBNZ has room to cut if needed; better placed than most to weather Brexit, CRA’s positive on NZ; Brexit may push NZD up
- Asia stocks bounce, bonds benefit from the unknown – RTRS
- U.S. first-quarter GDP revised up, Brexit risk to outlook – RTRS
Markets Update:
The US Dollar rallied yesterday, following stronger than expected GDP and consumer confidence data. However, it slightly retraced in Asia amid improving risk appetite in global markets. All of the major Asian stock indices are up on the day and in FX, the commodity currencies were the strongest performing. NZD/USD rose to a high of 0.71 overnight and is now only 200 pips away from the pre-Brexit high at 0.73. AUD/USD didn't have such strong momentum, but nevertheless, it rallied from 0.7380 to 0.7420.
USD/JPY usually benefits from a risk-on environment, but not tonight. The pair opened around 102.80 in Sydney, but then declined to 102.25 after the Toyko open. Support is seen at 101.40, while key resistance at 103.00. GBP/USD started the new trading day at 1.3360, but fell to a low of 1.3285 later in the session.
Upcoming Events:
- 08:00 BST – Spanish CPI
- 10:00 BST – Euro Zone Consumer Confidence
- 10:00 BST – Euro Zone Business Climate
- 13:00 BST – German CPI
- 13:30 BST – US Personal Income
- 13:30 BST – US Personal Spending
- 13:30 BST – US Core PCE Price Index
- 15:00 BST – US Pending Home Sales
- 15:30 BST – US Crude Oil Inventories
