- Japan FinMin Aso – Will discuss economy, fiscal policy, Asia infrastructure in financial dialogue with China.
- Fitch – Japan life insurers to continue increasing foreign bond investments, non-life insurers to continue seeking overseas M&A.
- Japan end-May foreign reserves $1.245755 trln, end-April 1.250073 trln.
- Fed doves’ ranks may be growing, possibly pushing hike into ’16.
- Foreign CB US debt holdings +$17.674 bln to $3.356 trln June 3 week, Treasury holdings +$18.025 bln to $3.025 trln, agencies -$316 mln to $287.288 bln.
- Lipper – US-based stock funds attract $6.2 bln in latest week.
- UK May KPMG/REC permanent jobs growth slowest in 4-mos, index 56.8 vs 60.6.
- Australia May PCI +1.6 pt to 47.8, up but still well below 50.
- Fitch – Lower dairy prices to pressure NZ banks’ asset quality.
- (0200 ET/0600 GMT) Germany April industrial orders, +0.5% m/m eyed; last +0.9%.
- (0245 ET/0645 GMT) France April trade balance; last E4.6 bln deficit sa.
- (0300 ET/0700 GMT) Spain April industrial output, +1.5% y/y eyed; last +2.9%.
- (0400 ET/0800 GMT) Norway April manufacturing output, -1.9% m/m eyed; last +3.2%.
- (0830 ET/1230 GMT) US May non-farm payrolls, +225k eyed; last +223k.
- (0830 ET/1230 GMT) US May unemployment, 5.4% eyed; last 5.4%, participation 62.8%.
- (1500 ET/1900 GMT) US April consumer credit, $16.7 bln eyed; last $20.52 bln.
Key Events Ahead
- N/A World Economic Forum on Africa in Cape Town (final day).
- N/A Helsinki ECB/Finland CB conference, various attendees (final day).
- N/A Paris Latin America Economic Forum, various attendees, speakers.
- N/A Buba semi-annual economic forecasts.
- N/A UK DMO GBP2/1/2 bln 1/3/6-month bill auctions.
- (0400 ET/0800 GMT) Norges bank Regional Network Report.
- (1230 ET/1630 GMT) NY Fed Dudley speech in Minneapolis.
FX Recap
EUR/USD is supported just above 1.1200 levels and currently trading at 1.1219 levels. It has made intraday high at 1.1243 and low at 1.1178 levels. The pair remains subdued as traders prefer to hold the US dollar following the positive weekly job updates on US fundamentals. USD is expected to strengthen heading into the most influential data of this week, the US non-farm payrolls, which continues to weigh on the main currency pair. In the day ahead, markets turn their focus on German factory orders as well as France trade balance. Initial support is seen at 1.1177 and resistance is seen around 1.1284 levels.USD/JPY is supported above 124.00 levels and posted a high of 124.56 levels. It has made intraday low at 124.32 and currently trading at 124.43 levels. Today Japan released leading indicator with flat to positive numbers. Near term resistance is seen at 124.83 levels and support is seen at 123.51 levels.GBP/USD is supported just above $1.5350 levels. It made an intraday high at 1.5368 and low at 1.5349 levels. Pair is currently trading at 1.5359 levels. Today UK will release consumer inflation expectation data. Initial support is seen at 1.5250 and resistance is seen around 1.5457 levels.USD/CHF is supported above 0.9300 levels and trading at 0.9336 levels and made intraday low at 0.9330 and high at 0.9360 levels. In the absence of any macro economic data from Switzerland, market will eye on US NFP data due later in a day. Near term support is seen at 0.9244 levels and resistance is seen at 0.9430 levels.AUD/USD is supported just around 0.7700 levels and trading at 0.7703 levels. It has made intraday high at 0.7706 levels and low at 0.7670 levels. The Aussie rebounded in Asia, swinging back higher above 0.77 handle after the AUD bulls were boosted by upbeat Australian construction PMI report which came in at 47.8 versus 47.00. Initial support is seen at 0.7613 and resistance at 0.7739 levels.
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