Global Markets:
- Asian stock markets: Nikkei up 0.40 %, Shanghai Composite lost 0.10 %, Hang Seng rose 0.05 %, ASX 200 lost 0.20 %
- Commodities: Gold at $1245 (-0.10 %), Silver at $16.55 (-0.15 %), WTI Oil at $43.50 (+0.20 %), Brent Oil at $46.15 (+0.25 %)
- Rates: US 10-year yield at 2.14, UK 10-year yield at 1.01, German 10-year yield at 0.25
News & Data
- New Zealand Trade Balance m/m NZ$103mln vs NZ$420mln expected
- New Zealand Trade Balance y/y -NZ$3.75bln vs -NZ$3.40bln expected
- New Zealand Exports 4.95bln vs 4.93bln expected
- New Zealand Imports 4.85bln vs 4.48bln expected
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index June 25: 111.8 (Prev 112.4)
- Japanese stocks edge towards two-year high, dollar supported before Yellen – RTRS
- Oil little changed after three-day gain, supply glut weighs – RTRS
Markets Update:
The focus overnight was on the USD/JPY. The pair briefly broke above 112, although momentum waned quickly. Nevertheless, it is likely to retest the level again, and a clear break above would signal that the rally could extend to 113 in the near-term. This will also depend on the general risk sentiment in the markets. While US stocks came slightly under pressure, Asian stocks are mostly up on the day.
EUR/USD continues to consolidate around 1.12. There are no major European data releases until Thursday, so it could remain quiet until then. GBP/USD reached a high of 1.2750, but political uncertainties are likely to keep the pair under pressure and prevent larger gains.
AUD/USD is struggling with the resistance between 0.76 and 0.7630, but has remained well bid overall. A clear break above 0.7630 would confirm that the short-term uptrend remains intact, and signal a move towards 0.7750.
Upcoming Events:
- 07:45 BST – French CPI
- 15:00 BST – US CB Consumer Confidence
- 15:00 BST – US Richmond Manufacturing Index
