Global Markets:
- Asian stock markets: Nikkei up 0.90 %, Shanghai Composite fell 0.20 %, Hang Seng rose 1.60 %, ASX 200 gained 1.85 %
- Commodities: Gold at $1318 (-0.70 %), Silver at $18.41 (+0.05 %), WTI Oil at $49.40 (-1.00 %), Brent Oil at $50.74 (-1.15 %)
- Rates: US 10 year yield at 1.51, UK 10 year yield at 0.95, German 10 year yield at -0.12
News & Data:
- Japan Industrial Production (MoM) May P: -2.3% (est. -0.10%, prev 0.50%)
- Japan Industrial Production (YoY) May P: -0.1% (est. 1.90%, prev -3.30%)
- Australia Private Sector Credit (MoM) May: 0.4% (est. 0.50%, prev 0.50%)
- Australia Private Sector Credit (YoY) May: 6.5% (est. 6.70%, prev. 6.70%)
- Australia Job Vacancies May: -1.9% (prev. 2.70%)
- New Zealand Building Permits (MoM) May: -0.9% (prev. 6.8%)
- New Zealand ANZ Activity Outlook Jun: 35.1 (prev. 30.4)
- New Zealand Business Confidence Jun: 20.2 (prev. 11.3)
- UK GfK Consumer Confidence Jun: -1 (est. -2, prev. -1)
- Nomura cut China 2016 GDP forecast to 6.0% from 6.2%
- Asia stocks rise as post-Brexit rebound continues, yen stays flat – RTRS
- Oil prices fall as supply outlook improves – RTRS
Markets Update:
It was rather quiet in FX overnight, and the US Dollar strengthened slightly against all other major currencies. EUR/USD fell from 1.1130 to 1.11, while GBP/USD declined from 1.3466 to 1.3388. The Euro is performing relatively well given the uncertainties around the Brexit, but it is still struggling above 1.11 and it is visible that any larger rally runs into decent selling interest. The Pound is consolidating after the heavy losses last week and while volatility will remain high, it seems more likely that it will continue to trade in a range until there are new developments regarding the Brexit.
USD/JPY briefly traded above 103.00 overnight, but failed to break above it and eventually fell back to 102.60. Support is seen at 102.20, while resistance lies at 103.00 and 103.80. AUD/USD traded in a 0.7430-70 range in Asia, while NZD/USD consolidated between 0.7080 and 0.7125.
Upcoming Events:
- 07:00 BST – German Retail Sales
- 07:45 BST – French CPI
- 08:55 BST – German Unemployment Change
- 08:55 BST – German Unemployment Rate
- 09:30 BST – UK GDP
- 10:00 BST – Italian CPI
- 10:00 BST – Euro Zone CPI
- 12:30 BST – ECB Meeting Minutes
- 13:30 BST – US Initial Jobless Claims
- 13:30 BST – Canadian GDP
- 14:45 BST – US Chicago PMI
- 16:00 BST – Bank of England Governor Carney speaks
- 18:30 BST – FOMC Member Bullard speaks
