Global Markets:
- Asian stock markets: Nikkei down 0.60 %, Shanghai Composite lost 0.05 %, Hang Seng fell 0.10 %, ASX 200 declined 0.95 %
- Commodities: Gold at $1243 (+0.60 %), Silver at $16.90 (+0.90 %), WTI Oil at $48.20 (-0.90 %), Brent Oil at $51.20 (-0.85 %)
- Rates: US 10-year yield at 2.30, UK 10-year yield at 1.14, German 10-year yield at 0.43
News & Data
- South Korea Export Price Index (YoY) Apr: 8.7%, Prior (Revised 5.0%)
- South Korea Import Price Index (YoY) Apr: 9.3%, Prior (Revised 6.8%)
- New Zealand PPI Input (QoQ) Q1: 0.8%, Prior (1.0%)
- New Zealand PPI Output (QoQ) Q1: 1.4%, Prior (1.5%)
- Japan Machine Orders (MoM) Mar: 1.4%, Est. (2.10%), Prior (1.50%)
- Japan Machine Orders (YoY) Mar: -0.7%, Est. (0.60%), Prior (5.60%)
- PBoC Fixes USDCNY Reference Rate At 6.8635 (prev fix: 6.7890)
- U.S. stock futures, dollar fall on rising concerns on Trump – RTRS
Markets Update:
US equity futures declined overnight following the leak of a memo in which US President Trump asked the former FBI chief to end a probe into his former national security advisor Flynn. Worries about Trump administration could put stock markets worldwide under pressure. Investors are hoping for a large tax reform, but with Trump facing increasing criticism and internal conflicts, the odds are decreasing.
USD/JPY fell below 113 support and traded as low as 112.40 so far. Next support is seen at 112. Should the pair break below it, a deeper correction to at least 110.50 seems likely.
Meanwhile, the outlook for the Euro remains positive. EUR/USD has cleared resistance at 1.1020 and extended gains to 1.1115. Should it break above 1.1150 resistance, a rally towards 1.13 seems likely.
USD/CAD is also looking increasingly bearish following the break below 1.36 support. With the Dollar under pressure and oil prices rising again, USD/CAD is likely to extend losses in the near-term. The next key support level now lies at 1.3450.
Upcoming Events:
- 09:30 BST – UK Claimant Count Change
- 09:30 BST – UK Unemployment Rate
- 10:00 BST – Euro Zone CPI
- 15:30 BST – US Crude Oil Inventories
