Market Roundup
- BoJ Gov Kuroda- Inflation to accelerate in H2’15, 2% around H1’16.
- IMF- Will take longer than BoJ things for Japan to hit 2% inflation target even with further easing, JPY value broadly stable after weakness in H2’14, more BoJ ease without bolder reforms could lead to JPY weakness overreliance.
- Japan April trade balance Y53.4 bln deficit, Y318.9 bln deficit eyed, exports +8.0% y/y, imports -4.2%, +6.4% and -1.5% eyed, exports to US +21.4%, to China +2.4%, rest of Asia +6.0%.
- Japan April crude oil imports +9.1% y/y, LNG -8.5%, thermal coal +16.3%.
- Japan Inc backs next sales tax hike, less keen than govt on nukes.
- US Senate passes fast-track legislation for trade deal.
- Greek IntMin Voutsis – Greece could default on June IMF repayment.
- BoE confirms EU exit research after e-mail misfire.
- Swedish policy impasse raises fears of runaway housing market.
Economic Data Ahead
- (0400 ET/0800 GMT) Italy April trade balance – non-EU – flash; last bln surplus.
Key Events Ahead
- US Memorial Day, UK bank holiday, Germany-Austria-Norway and Hong Kong closed.
- (0815 ET/1215 GMT) Cleveland Fed Mester speech at Reykjavik conference.
FX Recap
EUR/USD is supported below 1.1000 and currently trading at 1.0982 levels. It has made intraday high at 1.1008 and low at 1.0964 levels. The USD is appreciating against major pairs after solid USD CPI data released on last Friday. Today European markets remain close in observance of Whit Monday. Initial support is seen at 1.0859 and resistance is seen around 1.1041 levels.USD/JPY broke the 121.00 levels and posted a daily high at 121.76 levels and low at 121.47 levels. The USD strengthened against the JPY after the better than expected USD CPI numbers released last Friday. In Asian session Japan released trade balance data with positive numbers. Near term resistance is seen at 122.10 levels and support is seen at 121.10 levels.GBP/USD is trading downside at $1.5472. It made an intraday high at 1.5485 and low at 1.5457 levels. Today is bank holiday in UK for the observance of the Spring Bank Holiday. Initial support is seen at 1.5445 and resistance is seen around 1.5515.USD/CHF is supported above 0.9400 levels and trading around 0.9427 levels and made intraday low at 0.9425 and high at 0.9449 levels. Today is data free session for Switzerland. Swiss banks will be closed in observance of Whit Monday. Near term support is seen at 0.9285 levels and resistance is seen at 0.9571 levels.AUD/USD is supported below 0.7900 levels and trading at 0.7825 levels. It has made intraday high at 0.7830 levels and low at 0.7802 levels. Today is data free session for Australia. Better than expected US CPI as well as Core CPI data helped the parity to sustain below 0.7900 levels. Initial support is seen at 0.7785 and resistance at 0.7976 levels.
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