Global Markets:
- Asian stock markets: Nikkei down 0.70 %, Shanghai Composite fell 0.05 %, Hang Seng rose 0.90 %, ASX 200 gained 0.45 %
- Commodities: Gold at $1333 (+0.10 %), Silver at $19.97 (-0.20 %), WTI Oil at $45.60 (+0.35 %), Brent Oil at $46.80 (+0.35 %)
- Rates: US 10 year yield at 1.55, UK 10 year yield at 0.80, German 10 year yield at -0.03
News & Data:
- Australia Westpac Leading Index (MoM)Jun: -0.22% (prev. 0.21%)
- Australia Skilled Vacancies (MoM) Jun: 0.80% (prev. 1.00%)
- USD/CNY mid-point set at 6.6946 (prev. fix 6.6971, prev close 6.6970)
- China's NDRC on 2016: GDP expected to grow 6.5-6.8%, & CPI around 2%
- Asia slips after Wall Street loses steam, dollar clings to gains – RTRS
- Dollar firms on strong U.S. data, BOJ easing expectations – RTRS
- Crude oil futures mixed before U.S. inventory report – RTRS
- S&P pulls back from record; Dow notches eighth day of gains – RTRS
Markets Update:
EUR/USD declined yesterday after rumours that the ECB will tweak its QE programme as the central bank is facing a bond scarcity problem. The pair fell from 1.1080 to a low of 1.10 in the US session. In Asia, it consolidated between 1.0997 and 1.1020. GBP/USD came under pressure as well yesterday, and declined from 1.3250 to a low of 1.3075. Overnight, it extended losses to 1.3065 and is currently consolidating around 1.3090.
USD/JPY gave up some of its recent gains as equities retraced as well. The pair fell from 106.30 in the early Asian session to a low of 105.80 so far. Support is seen at 105.50/50, with major support noted at 104.60.
AUD/USD broke below 0.75 yesterday, but managed to bounce off 0.7490 overnight and recovered to 0.7515 after the Tokyo open. Similar price action was seen in NZD/USD, which managed to rise from 0.7020 to 0.7060.
Upcoming Events:
- 07:00 BST – German PPI
- 09:00 BST – Euro Zone Current Account
- 09:30 BST – UK Claimant Count Change
- 09:30 BST – UK Unemployment Rate
- 09:30 BST – UK Average Earnings
- 10:00 BST – Swiss ZEW Expectations
- 15:30 BST – US Crude Oil Inventories
