Global Markets:
- Asian stock markets: Nikkei down 0.60 %, Shanghai Composite fell 0.95 %, Hang Seng lost 0.30 %, ASX 200 declined 0.10 %
- Commodities: Gold at $1245 (-0.50 %), Silver at $16.32 (-0.65 %), WTI Oil at $47.90 (-0.40 %), Brent Oil at $48.10 (-0.50 %)
- Rates: US 10 year yield at 1.83, UK 10 year yield at 1.45, German 10 year yield at 0.18
News & Data:
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index (W/E 22 May): 115.7 (prev 115.1)
- PBoC Fixes Yuan At 6.5468 (prev 6.5455)
- Fed's Harker: Can Easily See Two, Three Rate Hikes In '16 — BBG
- Harker: Latest CPI Report Confirms View Inflation To Rise
- Harker: Expects Inflation To Return To 2% Sometime In 2017
- Harker: June Rate Hike Appropriate If Economy Meets His Outlook — BBG
- Harker: Market Expectation For Fed Action Moved In Right Direction
- Goldman sees 35% chance of hike in June, 35% in July and 20% in September – RTRS
- Japanese FinMin Aso: It Would Be Good If USDJPY Settled Around 109 — RTRS
- RBA Gov Stevens: Very Committed To Inflation Targeting Monetary Policy — RTRS
- Stevens: Don't Agree We Need A Different Inflation Target
- Stevens: Economic Growth Continues, Stronger Would Be Better, But It Is Not Too Bad
Markets Update:
The US Dollar strengthened in Asia, after hawkish comments from Fed officials about a possible rate hike next month. USD/JPY recovered to 109.45, after trading as low as 109.10 in yesterday's NY session. However, the risk-off sentiment has prevented any major rally. EUR/USD remains quiet and it has traded in a 1.1200-20 range overnight. GBP/USD, which came under renewed pressure yesterday and fell to 1.4440, recovered slightly and consolidated between 1.4475 and 1.4495 in Asia.
The commodity currencies were the weakest overnight. The Australian Dollar fell from 0.7230 to 0.7183 and another test of the recent low at 0.7175 seems imminent. The New Zealand Dollar declined from 0.6765 to a low of 0.6715 and is also near a key support level, at 0.6710. USD/CAD rose from 1.3135 to 1.3170 in Asia.
Upcoming Events:
- 07:00 BST – Swiss Trade Balance
- 07:00 BST – German GDP
- 10:00 BST – German ZEW Economic Sentiment
- 10:00 BST – Euro Zone ZEW Economic Sentiment
- 15:00 BST – US New Home Sales
- 15:00 BST – US Richmond Manufacturing Index
- 21:35 BST – US API Weekly Crude Oil Stock
