Global Markets:
- Asian stock markets: Nikkei up 0.60 %, Shanghai Composite rose 0.45 %, Hang Seng rallied 1.00 %, ASX 200 gained 0.30 %
- Commodities: Gold at $1255 (-0.10 %), Silver at $16.65 (-0.05 %), WTI Oil at $44.85 (-0.30 %), Brent Oil at $47.25 (-0.30 %)
- Rates: US 10-year yield at 2.16, UK 10-year yield at 1.02, German 10-year yield at 0.28
News & Data:
- New Zealand Westpac Consumer Sentiment 113.4 vs 111.9 previous
- Japan Trade Balance -JPY203bln vs JPY76bln expected
- Japan Exports 14.9 % vs 16.1 % expected
- Japan Imports 17.8 % vs 14.8 % expected
- Australia New Motor Vehicle Sales 2.9 % vs 0.3 % previous
- China House Prices 10.4 % vs 10.7 % previous
- UK House Price Index -0.4 % vs 1.2 % previous
- Asia stocks shake off Wall St. blues, sterling steady before Brexit talks – RTRS
- Oil prices fall on further rise in US drilling, signs of slowing demand – RTRS
- Dollar firm before Fed’s Dudley speech, euro and pound hold steady – RTRS
CFTC Positioning Data:
- EUR long 79K vs 74K long last week. Longs increased 5K
- GBP short 39K vs 37K short last week. Shorts increased by 2K
- JPY short 51K vs 55K short last week. Shorts trimmed by 4K.
- CHF short 14K vs 17K short last week. Shorts trimmed by 3K
- CAD short 88K vs 94K short. Shorts trimmed by 6K
- AUD short 1 vs square. Shorts increased by 1K
- NZD long 1K vs 2K short last week
Markets Update:
The US Dollar came again under pressure in Asia, following more disappointing US economic data on Friday. The New Zealand Dollar was the best performing currency overnight, with NZD/USD rallying to 0.73. Should it break above that level, next resistance is noted at 0.7380. The Australian Dollar followed the NZD higher, but lacked the momentum. AUD/USD reached a high of only 0.7630. AUD/NZD selling weighed a bit on the currency.
USD/JPY recovered along with stocks. The pair rose from 110.70 to 111.15. The outlook is still positive and another test of 111.50 resistance likely. Meanwhile, the Euro consolidated in a 1.1190-1.1205 range, while GBP/USD traded 1.2755-80.
There will likely be a positive reaction to the French parliamentary election outcome once Europe opens. EU stock markets are likely to open higher as well.
There are no notable data releases scheduled for today. The only event is a speech by FOMC member Dudley at 1300 BST.
Upcoming Events:
- 13:00 BST – FOMC Member Dudley speaks
The Week Ahead:
Tuesday, June 20th
- 02:30 BST – Australia House Price Index
- 02:30 BST – RBA Meeting Minutes
- 07:30 BST – SNB Chairman Jordan speaks
- 09:00 BST – Euro Zone Current Account
- 13:00 BST – FOMC Member Fischer speaks
- 13:30 BST – US Current Account
- 20:00 BST – FOMC Member Kaplan speaks
Wednesday, June 21st
- 00:50 BST – Bank of Japan Meeting Minutes
- 15:00 BST – US Existing Home Sales
- 15:30 BST – US Crude Oil Inventories
- 22:00 BST – RBNZ Rate Decision
Thursday, June 22nd
- 13:30 BST – US Initial Jobless Claims
- 13:30 BST – Canadian Retail Sales
- 14:00 BST – US House Price Index
- 15:00 BST – Euro Zone Consumer Confidence
Friday, June 23rd
- 08:00 BST – French Manufacturing PMI
- 08:00 BST – French Services PMI
- 08:30 BST – German Manufacturing PMI
- 08:30 BST – German Services PMI
- 09:00 BST – Euro Zone Manufacturing PMI
- 09:00 BST – Euro Zone Services PMI
- 13:30 BST – Canadian CPI
- 13:30 BST – Canadian Core CPI
- 14:45 BST – US Services PMI
- 14:45 BST – US Manufacturing PMI
- 15:00 BST – US New Home Sales
