Market Roundup
- BoJ leaves policy unch, ups economic assessment, as eyed, vote 8-1 to leave policy as is, Kiuchi dissents, for taper but maintaining QE, zero rates.
- FinMin Aso- To tell G7 Japan aiming for primary budget balance in FY’20.
- Japan end-’14 net external assets record trln, largest among major economies.
- Japan May Reuters Tankan mfg DI +13, non-mfg +33, April +12, +25, +15 and +29 eyed in August, survey suggests mood points to gradual economic recovery.
- SF Fed Williams – Minutes too detailed, can hinder policy debate.
- Foreign CB US debt holdings +$214 mln to $3.321 trln May 20 weeks, Treasury holdings +$1.378 bln to $2.988 trln, agencies -$1.280 bln to $288.205 bln.
- ECB Pres Draghi – Growth too low everywhere.
- German finance ministry sees economic upswing continuing in ’15.
- NZ May ANZ/RM consumer confidence index 123.9, April 128.8.
Economic Data Ahead
- (0245 ET/0645 GMT) France May business climate index, 101.0 consensus; last 101.0.
- (0400 ET/0800 GMT) Germany May IFO business climate index, 108.3 consensus; last 108.6.
- (0400 ET/0800 GMT) Germany May IFO current conditions index, 113.5 consensus; last 113.9.
- (0400 ET/0800 GMT) Germany May IFO expectations index, 103.1 consensus; last 103.5.
- (0400 ET/0800 GMT) Germany Italy March industrial orders/sales; last +0.8% m/m, +2.0% y/y & +0.4%, -0.9%.
- (0430 ET/0830 GMT) UK April PSNB, GBP7.5 bln consensus; last bln, PSNCR bln.
- (0430 ET/0830 GMT) UK April ex-banks, GBP8.1 bln consensus; last bln.
- (0500 ET/0900 GMT) Italy March retail sales; last -0.2% m/m, +0.1% y/y.
- (0830 ET/1230 GMT) US April CPI, +0.1% m/m, -0.1% y/y consensus; last +0.2%, -0.1%.
- (0830 ET/1230 GMT) US April core, +0.2% m/m, +1.7% y/y consensus; last +0.2%, +1.8%.
- (0830 ET/1230 GMT) US April real weekly earnings; last -0.2% m/m.
- (0900 ET/1300 GMT) BE May consumer confidence index; last -6.
- (1130 ET/1530 GMT) US April Cleveland Fed CPI; last +0.2%.
Key Events Ahead
- (0230 ET/0630 GMT) BoJ Gov Kuroda press conference.
- N/A ECB forum in Sintra, Portugal, various speakers, attendees (till tom).
- N/A Buba monthly bulletin, Riksbank DepGov Skingsley speech in Stockholm.
- N/A UK DMO GBP1.5/1.5/2.0 bln 1/3/6-month treasury bill auctions.
- (0500 ET/0900 GMT) Buba Dombret speech in Frankfurt.
- (0520 ET/0920 GMT) BoE Taylor speech at London conference.
- (0445 ET/0945 GMT) BoE DepGov Shafik speech at Manchester conference.
- (1300 ET/1700 GMT) FOMC Chair Yellen speech at Providence, RI luncheon.
FX Recap
EUR/USD is supported around 1.1150 levels and currently trading at 1.1148 levels. It has made intraday high at 1.1152 and low at 1.1108 levels. Today German Final GDP, IFO business climate and Italy retail sales data will be main focus in European Session. 1.1316 is an immediate resistance and a daily close below 1.1120 levels may drag the pair towards 1.1015 levels.USD/JPY is trading at 120.75, having posted a daily high at 121.09 levels and low at 120.71 levels. The yen strengthened against the US dollar after the BOJ left its monetary policy unchanged, keeping rates on hold and asset purchases intact at the annual pace of 80 trn yen. Moreover, the BOJ statement delivered that the Japanese economy is recovering at a moderate pace and the QQE is having its intended effects. It also reiterated that the central bank will continue its accommodative policy as long as it is necessary in a bid to achieve 2% inflation target. On the top side, the next resistance is located at 121.60. Immediate support might be located at 120.56 levels.GBP/USD recovered losses, trading higher at $1.5675. It made an intraday high at 1.5680 and low at 1.5656 levels. UK calendar is very light as UK will release Public Sector net borrowing data. Immediate resistance is seen at 1.5751 and on the other side; support is seen at 1.5600 levels.USD/CHF is trading around 0.9348 levels and made intraday low at 0.9344 and high at 0.9374 levels. Today is data free session for Switzerland. Near term support is seen at 0.9272 levels and resistance is seen at 0.9412 levels.AUD/USD is supported above 0.7900 levels and trading at 0.7921 levels. It has made intraday high at 0.7927 levels and low at 0.7895 levels. Today is data free session for Australia. Today US CPI as well as Core CPI data due later in a day will give further direction to the parity. Initial support is seen at 0.7860 and resistance at 0.7976 levels.
The material has been provided by InstaForex Company – www.instaforex.com