- Japan May household spending +2.4% m/m, +4.8% y/y, +2.2% and +3.4% eyed.
- Japan May nationwide core CPI +0.1% y/y, Tokyo June core +0.1%, unchanged and +0.1% eyed, overall CPI +0.5%, +0.3%, respectively.
- Japan May unemployment 3.3%, as eyed, jobs-applicants ratio 1.19, 1.17 eyed, April 3.3%, 1.17, jobs applicants’ ratio highest since March.
- ING launches Y81.1 bln 3-trnache Pro-bonds via Barclays, MUFJ, Mizuho.
- Foreign CB US debt holdings +$487 mln to $3.366 trln June 24 week, Treasury holdings -$2.234 bln to $3.021 trln, agencies +$2.111 bln to $299.313 bln.
- Swaps with foreign CBs $115 mln June 24 week, all with ECB.
- US-based taxable bond funds attract $3.4 bln in latest week.
- RBNZ Statement of Intent- To explore macro-prudential policies, bank stress testing, central bank reiterates NZD still too high.
- New Zealand May trade surplus NZ$350 mln, to-day deficit NZ$2.57 bln, NZ$100 mln and NZ$2.9 bln eyed, May imports NZ$4.01 bln, exports NZ$4.36 bln.
- (0245 ET/0645 GMT) France June consumer confidence index, 93.0 eyed; last 93.0.
- (0330 ET/0730 GMT) Sweden May retail sales, +0.3% m/m, +4.4% y/y eyed; last -0.2%, +3.0%.
- (0330 ET/0730 GMT) Sweden May trade balance; last SEK5.7 bln surplus.
- (0330 ET/0730 GMT) Sweden May household lending; last +6.5% y/y.
- (0400 ET/0800 GMT) Euro Zone May money supply M3, +5.4% y/y eyed; last +5.3%, 3-month moving average +4.7%.
- (0400 ET/0800 GMT) Euro Zone May private loans, +0.4%; last unchanged.
- (0400 ET/0800 GMT) Euro Zone Italy June business confidence index, 103.8 eyed; last 103.5.
- (0400 ET/0800 GMT) Italy June consumer confidence index, 105.7 eyed; last 105.7.
- (1000 ET/1400 GMT) US June UOM sentiment index final, 94.6 eyed; prelim 94.6.
Key Events Ahead
- N/A Riksbank executive board meeting.
- N/A BoE Gov Carney, ex-US Pres Clinton speeches at London conference.
- N/A IIF Europe Summit in Frankfurt, various speakers (final day).
- N/A Italy 6-month BOT, UK treasury bill auctions.
- (0500 ET/0900 GMT) Italy -1.75 bln 2017 CTZ auction.
- (0700 ET/1100 GMT) BoE Waldron speech at London business economist’s conference.
- (1245 ET/1645 GMT) Kansas City Fed George speech at Kansas City conference.
- Saturday Euro Group Finance Ministers meeting on Greece in Brussels.
FX Recap
EUR/USD is supported below 1.1200 levels and currently trading at 1.1181 levels. It has made intraday high at 1.1206 and low at 1.1177 levels. The European currency came under renewed selling pressure as markets continue to weigh Greek impasse after another round of failed talks at Euro group on Thursday while USD strength dominates across the FX board. Moreover, a generalized strength seen in the greenback as traders digest a batch of US economic data released yesterday with the key PCE price index and weekly claims coming in line with market expectations, boosting the USD bulls. Looking ahead to the US session, traders will mostly focus on US consumer sentiment data amid a data-thin EUR calendar while Greece headline will remain in focus. Initial support is seen around 1.1050 and resistance is seen around 1.1375 levels.USD/JPY is supported below 124.00 levels and posted a high of 123.65 levels. It has made intraday low at 123.21 and currently trading at 123.31 levels. The Japanese currency witnessed sharp gains in Asia mainly driven by Greece concerns while upbeat Japan’s CPI print also supported the upside, pushing USD/JPY closer towards 123 handle. Near term resistance is seen at 124.57 and support is seen at 122.10 levels.GBP/USD is supported above $1.5700 levels. It made an intraday high at 1.5751 and low at 1.5731 levels. Pair is currently trading at 1.5740 levels. The greenback slowly grabbed some momentum amid favourable US data released yesterday as sterling bulls took a nap after their previous strong rally. Today is data free session for UK. Initial support is seen at 1.5624 and resistance is seen around 1.5835 levels.USD/CHF is supported below 0.9400 levels and trading at 0.9362 levels and made intraday low at 0.9354 and high at 0.9366 levels. Yesterday CHF made high at 0.9418 levels and took reversal from that and currently supported below 0.94 levels. Today is data thin calendar; market will eye on Greece story and US data release due later in a day. Near term support is seen at 0.9113 levels and resistance is seen at 0.9383 levels.AUD/USD is supported above 0.7700 levels and trading at 0.7715 levels. It has made intraday high at 0.7738 levels and low at 0.7708 levels. The Aussie also received fresh momentum from higher commodity prices with gold posing a solid recovery. While, the Greek story is set to continue, with Euro group officials meeting failed to reach a Greek solution after yet again ending yesterday’s meeting in a no deal. A euro zone finance ministers’ meeting scheduled for Saturday will be decisive for Greece and its ongoing debt crisis, German Chancellor Angela Merkel said on Friday morning, following a day and night of frantic negotiations between Athens and its international lenders. Initial support is seen at 0.7568 and resistance at 0.7838 levels.
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