Economic Data Ahead
- (0915 ET/1315 GMT) Italy Markit/IHS Svcs PMI
- (0915 ET/1315 GMT) Italy Composite PMI
- (0920 ET/1320 GMT) France Markit Serv PMI
- (0920 ET/1320 GMT) France Markit Comp PMI
- (0925 ET/1325 GMT) Germany Markit Services PMI
- (0925 ET/1325 GMT) Germany Markit Comp Final PMI
- (0930 ET/1330 GMT) Euro Zone Markit Serv Final PMI
- (0930 ET/1330 GMT) Euro Zone Markit Comp Final PMI
- (1000 ET/1400 GMT) United Kingdom Markit/CIPS Serv PMI
- (1000 ET/1400 GMT) United Kingdom Composite PMI
- (1000 ET/1400 GMT) United Kingdom Reserve Assets Total
Key Events Ahead
- No significant events scheduled
FX Beat
DXY: The dollar index declined as the 10-year U.S. Treasury yield extended an overnight fall and recorded a fresh 2-1/2-year low of 1.965 percent. The greenback against a basket of currencies traded 0.05 percent down at 96.75, having touched a high of 96.88 on Tuesday, its highest since June 20. FxWirePro's Hourly Dollar Strength Index stood at -25.07 (Neutral) by 0500 GMT.
EUR/USD: The euro consolidated near 2-week low as investor sentiment weakened following Washington’s threat of tariffs on $4 billion of additional European Union goods in a long-running dispute over aircraft subsidies. The European currency traded flat at 1.1285, having touched a low of 1.1275 on Tuesday, its lowest since June 20. FxWirePro's Hourly Euro Strength Index stood at 99.99 (Slightly Bullish) by 0500 GMT. Investors’ attention will remain on a series of data from the Eurozone economies, EZ Markit service PMI, ahead of the U.S. trade balance, unemployment benefit claims, factory orders and service PMI by both Markit and ISM. Immediate resistance is located at 1.1327 (38.2% retracement of 1.1412 and 1.1275), a break above targets 1.1360 (61.8% retracement). On the downside, support is seen at 1.1251 (June 7 Low), a break below could drag it below 1.1203 (June 17 Low).
USD/JPY: The dollar declined to a 1-week low, as fading optimism over near-term U.S.-China trade deal revived safe-haven demand and drove U.S. yields lower. The pair was trading 0.2 percent down at 107.68, having hit a low of 107.53 earlier, its lowest since Jun. 26. FxWirePro's Hourly Yen Strength Index stood at -99.97 (Slightly Bearish) by 0500 GMT. Investors’ will continue to track the broad-based market sentiment, ahead of the U.S. trade balance, unemployment benefit claims, factory orders and service PMI by both Markit and ISM. Immediate resistance is located at 108.36 (June 4 High), a break above targets 108.80 (June 11 High). On the downside, support is seen at 107.24 (June 24 Low), a break below could take it lower at 106.78 (June 25 Low).
GBP/USD: Sterling plunged to a 2-week low as investors increased their bets on Bank of England easing after BoE’s Carney stated that a global trade war and a no-deal Brexit were growing risks to Britain’s economy which might require more help to cope with a downturn. The major traded 0.05 percent down at 1.2586, having hit a low of 1.2584 earlier, it’s lowest since June 19. FxWirePro's Hourly Sterling Strength Index stood at 72.86 (Bullish) 0500 GMT. Investors’ attention will remain on the UK Markit service PMI, ahead of the U.S. fundamental drivers. Immediate resistance is located at 1.2655 (5-DMA), a break above could take it near 1.2743 (June 5 High). On the downside, support is seen at 1.2558 (May 31 Low), a break below targets 1.2506 (June 18 Low). Against the euro, the pound was trading 0.1 percent down at 89.69 pence, having hit a high of 89.19 on Tuesday, it’s highest since Jun. 25.
AUD/USD: The Australian dollar rose, extending previous session gains after the Reserve Bank of Australian cut interest rates but offered a more balanced outlook. The Aussie trades 0.05 percent up at 0.6995, having hit a high of 0.7034 on Monday, it’s highest since Jun. 7. FxWirePro's Hourly Aussie Strength Index stood at 44.8 (Neutral) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.6941 (June 25 Low), a break below targets 0.6901 (June 13 Low). On the upside, resistance is located at 0.7022 (June 7 High), a break above could take it near 0.7069 (Apr. 30 High).
Equities Recap
Asian shares plunged as optimism over the latest U.S.-China trade truce was offset by fresh concerns over Washington’s threat of tariffs on additional European goods.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.3 percent.
Tokyo's Nikkei declined 0.5 percent to 21,638.16 points, Australia's S&P/ASX 200 index gained 0.5 percent to 6,685.50 points and South Korea's KOSPI eased 1.2 percent to 2,096.02 points.
Shanghai composite index fell 0.9 percent to 3,015.09 points, while CSI 300 index traded 1.1 percent down at 3,893.09 points.
Hong Kong’s Hang Seng traded 0.3 percent lower at 28,797.01 points. Taiwan shares shed 1.1 percent to 10,743.77 points.
Commodities Recap
Crude oil prices rose after a steep fall in the previous session, supported by extended output cuts by OPEC and its allies, although concerns over a slowing global economy capped upside. International benchmark Brent crude was trading 0.05 percent higher at $62.59 per barrel by 0515 GMT, having hit a low of $62.21 on Monday, its lowest since June 20. U.S. West Texas Intermediate was trading 0.2 percent up at $56.45 a barrel, after falling as low as $56.07 on Tuesday, its lowest since the June 20.
Gold prices rallied a 1-week high, helped by a subdued greenback as renewed concerns over global trade boosted safe-haven demand. Spot gold rose 0.7 percent at $1,427.27 per ounce by 0520 GMT, having touched a high of $1,437.66 earlier, its highest since June 25. U.S. gold futures were up 2.1 percent at $1,437.7 an ounce.
Treasuries Recap
The Japanese government bond prices rose, with the five-year JGB yield fallling 1.5 basis points to minus 0.255 percent and the 10-year yield also declining1.5 basis points to minus 0.150 percent. The 20-year yield slid 2 basis points to 0.220 percent.
The yield on Australia’s benchmark 10-year note, which moves inversely to its price, plunged 4 basis points to 1.296 percent, the yield on the long-term 30-year bond remained tad lower at 1.941 percent and the yield on short-term 2-year slumped nearly 3 basis points to 0.931 percent.
