Global Markets:
- Asian stock markets: Nikkei down 0.70 %, Shanghai Composite fell 0.05 %, Hang Seng declined 0.30 %, ASX 200 rose 1.00 %
- Commodities: Gold at $1244 (+0.15 %), Silver at $16.42 (+0.30 %), WTI Oil at $49.10 (+0.90 %), Brent Oil at $50.00 (+0.70 %)
- Rates: US 10 year yield at 1.71, UK 10 year yield at 1.27, German 10 year yield at 0.07
News & Data:
- Australia Melbourne Institute Inflation (MoM) May: -0.2% (prev. 0.10%)
- Melbourne Institute Inflation (YoY) May: 1.0% (prev. 1.50%)
- Australia ANZ Job Advertisements (MoM) May: 2.4% (rev prev. -0.6% from -0.80%)
- USD/CNY midpoint 6.5497 (prev. 6.5793)
- Japan chief cabinet secretary Suga: Closely watching FX moves, stability is desirable – RTRS
- Asian shares rise, dollar nurses losses after jobs shock – RTRS
- U.S. supports China's market reforms, capacity cuts: U.S. treasury secretary – RTRS
- Stumbling dollar, Nigeria sabotage push Brent to $50 per barrel – RTRS
CFTC Positioning Data:
- EUR short 38K vs 38K short prior week
- GBP short 33K vs 33K short prior week
- JPY long 15K vs. 22K long prior week
- CAD long 26K vs 20K long prior week
- CHF no net position vs 4K long prior week
- AUD short 5K vs. 0.1K long prior week
- NZD long 5.5K vs 4.6K long prior week
Markets Update:
The US Dollar recovered slightly overnight. EUR/USD opened around 1.1350 and fell to a low of 1.1340, down 30 pips from Friday's high. Support is seen at 1.13 and 1.1250. GBP/USD fell sharply in the early Asian session as new polls showed that the "leave" campaign for this month's Brexit vote are now leading. The pair fell from 1.4470 to a low of 1.43600, with which it erased all of its post-NFP gains from Friday.
USD/JPY found decent support at 106.40 and bounced from there. It rallied back above 107.00 and reached a high of 107.18. Resistance is noted at 107.80 and 108.20, while support is seen at 105.50 and 105.20.
The commodity currencies declined in Asia. AUD/USD opened around 0.7360, mostly unchanged from Friday's close, and fell to 0.7315 later in the session. NZD/USD declined from 0.6950 to 0.6910, while USD/CAD rose from 1.2930 to 1.2970.
Upcoming Events:
- 07:00 BST – German Factory Orders
- 07:15 BST – FOMC Member Rosengren speaks
- 09:00 BST – ECB's Nowotny speaks
- 09:30 BST – Euro Zone Sentix Investor Confidence
- 17:30 BST – Fed Chair Yellen speaks
The Week Ahead:
Tuesday, June 7th
- 05:30 BST – RBA Rate Decision
- 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
Wednesday, June 8th
- 00:50 BST – Japanese GDP
- 02:30 BST – Australian Home Loans
- 03:30 BST – Chinese Trade Balance
- 08:15 BST – Swiss CPI
- 09:30 BST – UK Industrial Production
- 09:30 BST – UK Manufacturing Production
- 13:15 BST – Canadian Housing Starts
- 13:30 BST – Canadian Building Permits
- 15:00 BST – US JOLTs Job Openings
- 15:00 BST – UK NIESR GDP Estimate
- 15:30 BST – US Crude Oil Inventories
- 22:00 BST – RBNZ Rate Decision
- 22:00 BST – RBNZ Rate Statement
Thursday, June 9th
- 00:00 BST – RBNZ Governor Wheeler speaks
- 02:30 BST – Chinese CPI
- 02:30 BST – Chinese PPI
- 06:45 BST – Swiss Unemployment Rate
- 07:00 BST – German Trade Balance
- 08:00 BST – ECB President Draghi speaks
- 09:30 BST – UK Trade Balance
- 13:30 BST – US Initial Jobless Claims
- 13:30 BST – Canadian New Housing Price Index
- 15:00 BST – US Wholesale Inventories
- 16:15 BST – Bank of Canada Governor Poloz speaks
Friday, June 10th
- 00:50 BST – Japanese PPI
- 07:00 BST – German CPI
- 07:45 BST – French Industrial Production
- 08:00 BST – Bundesbank President Weidmann speaks
- 13:30 BST – Canadian Employment Change
- 13:30 BST – Canadian Unemployment Rate
- 15:00 BST – US Michigan Consumer Sentiment
- 20:30 BST – CFTC Positioning Data
