Global Markets:
- Asian stock markets: Nikkei down 0.80 %, Hang Seng lost 0.70 %, ASX 200 declined 0.90 %
- Commodities: Gold at $1269 (-0.25 %), Silver at $17.28 (+0.10 %), WTI Oil at $50.40 (-0.30 %), Brent Oil at $51.80 (-0.30 %)
- Rates: US 10 year yield at 1.68, UK 10 year yield at 1.25, German 10 year yield at 0.03
News & Data:
- Japan PPI (MoM) May: 0.2% (est. 0.10%, rev prev. -0.4% from -0.30%)
- Japan PPI (YoY) May: -4.2% (est. -4.20%, prev. -4.20%)
- New Zealand Card Spending Retail (MoM) May: -0.3% (est. 0.50%, prev. 0.90%)
- New Zealand Card Spending Total (MoM) May: -0.6% (prev. 1.50%)
- Stocks down, bonds rally as 'Brexit' vote looms – RTRS
- Dollar enjoys reprieve as euro, sterling feel the heat – RTRS
- Oil stable on firm demand, supply disruptions; strong dollar weighs – RTRS
Markets Update:
GBP/USD remains under pressure ahead of the Brexit vote, but volatility has calmed down a bit in the past 24 hours. Overnight, the pair consolidated between 1.4445 and 1.4465. Key support is seen at 1.4350, while resistance lies at 1.4520 and 1.4580.
The Euro also weakened and rallies are likely to be limited in the short-term, as a Brexit would be EUR-negative as well. EUR/USD fell from 1.1415 to 1.1305 yesterday and in Asia it extended losses to 1.1290.
The EUR and GBP weakness boosted the US Dollar. USD/JPY bounced off 106.30 and rallied to a high of 107.10 ahead of the Asian open. As Tokyo opened, the pair extended gains to 107.25.
AUD/USD has retraced some of its post-RBA gains and fell back to 0.7405 overnight, after trading as high as 0.7050 yesterday.
Upcoming Events:
- 07:00 BST – German CPI
- 08:00 BST – Bundesbank President Weidmann speaks
- 09:00 BST – Norwegian CPI
- 13:30 BST – Canadian Employment Change
- 13:30 BST – Canadian Unemployment Rate
- 15:00 BST – Michigan Consumer Confidence
- 20:30 BST – CFTC Positioning Data
