Market Roundup
- Canada May house starts, annualized increase to 201.7 k (consensus 185.0 k, previous 181.8 k)
- Canada Apr building permits mm. stays flat at +11.6 % (consensus -6.0 %, previous 11.6 %)
- ECB’S Noyer: It’S extremely urgent for Greece to reach a settlement; “it’s a matter of days”
- ECB’S Noyer: Problem of Greece is a problem for Greece itself; “I am anxious for Greece”; problem is for Greece to restart their economy and pursue reforms
- IMF says expects Spain GDP growth to be 3.1 percent in 2015, vs April forecast of 2.5 percent
- Japanese PM Abe: will keep eyes on softer yen’s impact
- ECB’s Noyer too early to consider changing ECB monetary policy
- Greece, Creditors Consider Extending Eurozone Bailout Until March (WSJ)
- Juncker says waiting for Greece to ‘build its part of bridge’ to move closer to creditor demands
- Dutch CB- econ recovery to continue in ’16/’17 driven by higher exports, domestic consumption
- Bank of Portugal growth supported by robust exports, recovering internal demand
Economic Data Ahead
- (1800 ET/ 2200 GMT) NewZealand Govt Optg Balance Apr (previous 70.5%)
- (1800 ET/ 2200 GMT) NewZealand Govt. Monthly Debt Apr (previous 26.5%)
- (1845 ET/ 2245 GMT) NewZealand Manufacturing Sales Q1 (previous 0.9%)
- (0100 ET/ 0500 GMT) Japan Consumer Confidence Index May (previous 41.5)
- (2130 ET/ 0130 GMT) Australia NAB Business Conditions May (previous 4)
- (2130 ET/ 0130 GMT) Australia NAB Business Confidence May (previous 3)
- (2130 ET/ 0130 GMT) Australia ANZ Newspaper Job Ads May (previous -2.5%)
- (2130 ET/ 0130 GMT) Australia Housing Fin Apr (consensus -2.00%, previous 1.6%)
- (2130 ET/ 0130 GMT) Australia Invest Housing Fin Apr (previous 6.4%)
- (2130 ET/ 0130 GMT) China PPI YY May (consensus -4.50%, previous -4.6%)
- (2130 ET/ 0130 GMT) China CPI YY May (consensus 1.30%, previous 1.5%)
- (2130 ET/ 0130 GMT) China CPI MM May (consensus 0.00%, previous -0.2%)
Key Events Ahead
- No Significant Events
FX Recap
EUR/USD climbed over 200 pips on Monday, recovering all of its post-NFP decline from 1.1275 last Friday. The pair jumped from 1.1080 to break above June 5 highs at 1.1275 and to post daily highs around 1.1300. At the time of writing, EUR/USD is trading at 1.1276, up 1.47% on the day, having posted a daily high at 1.1295 and low at 1.1084. Beyond 1.1300, it will find resistances at 1.1375, then 1.1400 and 1.1460. To the downside, supports are at 1.1245, 1.1185 and 1.1085. Option expiries for Tuesday 9 June: 1.1100 (860M), 1.1200 (314M), 1.1250 (454M), 1.1280-1.1300 (707M).
USD/JPY sparked a correction lower following a renewed softer tone in the US dollar on Monday. After Friday’s fresh cycle highs near 125.80, the pair is below the 125.00 key support as greenback continues to lose ground. In Japan docket this week IP figures and the critical tertiary Industry Index due on Friday. On the US side, Retail Sales are due on Thursday ahead of the flash gauge of the Reuters/Michigan index for the month of June. USD/JPY is now trading at 124.87 down 0.59% on the day. Next support is at 124.36 (low Jun 5) ahead of 124/32 (Tenkan Sen) and then 123.78 (low Jun 4). Resistances are at 125.68 (high Jun 8) 125.86 (2015 high Jun 5) and then the psychological level at 126.00. Option expiries for Tuesday 9 June: 124.00 (672M), 125.25 (530M).
GBP/USD pared most of Friday’s losses as the dollar continues to weaken across the board. The pair extended gains and printed fresh daily highs as USD continued to underperformed extending losses over the last hours. GBP/USD broke above the 1.53 mark and accelerated to a high of 1.5341 before finding resistance. At time of writing, the pair is trading at 1.5330, up 0.37% on the day. Resistance are seen at 1.5361 and then 1.5399, while on the flipside supports lie at 1.5140, 1.5102 and then 1.5064. Option expiries for Tuesday 9 June: 1.5225 (360M), 1.5350 (330M).
AUD/USD rose more than a hundred pips throughout the day, recovering almost completely Friday’s post-NFP losses. The pair hit a peak of 0.7710 in recent dealings as the greenback continues to underperform across the board. At time of writing, the pair is trading at 0.7702, up 1.15% on the day. Next divers for the Aussie may come from China May CPI and Australian April home loan due next Asian session. Immediate resistances are seen at 0.7710 (daily high), 0.7729 (June 5 high) and 0.7785 (Jun 4 high). Supports could be found at 0.7598 (Jun 5 & 1 lows), 0.7570 (Apr 15 low) and 0.7552 (Apr 13 low).
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