Global Markets:
- Asian stock markets: Nikkei up 0.15 %, Shanghai Composite fell 0.75 %, Hang Seng rose 0.05 %, ASX 200 unchanged
- Commodities: Gold at $1253 (+0.50 %), Silver at $16.60 (+0.55 %), WTI Oil at $42.90 (+0.40 %), Brent Oil at $45.40 (+0.40 %)
- Rates: US 10-year yield at 2.16, UK 10-year yield at 1.02, German 10-year yield at 0.26
News & Data
- Japan Manufacturing PMI 52.0 vs 53.4 expected – RTRS
- PBoC Fixes USDCNY Reference Rate At 6.8238 (prev fix 6.8197 prev close 6.8368)
- Asian shares flat, still on track for winning week – RTRS
- Dollar sluggish but firm, oil bounce helps commodity currencies – RTRS
- Oil edges up, but set for worst first-half performance in 20 years – RTRS
Markets Update:
Markets remained quiet overnight amid a lack of events. Most major Asian indices are unchanged on the day. Oil prices bounced slightly after briefly trading below $42 yesterday. The outlook remains negative, but support at $42 has proven to be relatively strong. WTI might see a bounce here before the downtrend continues.
The US Dollar came slightly under pressure in Asia. EUR/USD rose to 1.1165, while GBP/USD managed to return above 1.27. While the Euro rally may continue, the outlook for GBP is negative amid the political situation in the UK and uncertainty about the upcoming Brexit negotiations. Resistance is noted at 1.2720 and ahead of 1.28.
The Australian Dollar remains resilient, although it lacks momentum. Strong support is seen at 0.7520, while resistance lies at 0.76 and 0.7630. A clear break above 0.7630 is needed to confirm that the AUD rally will continue.
Upcoming Events:
- 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
