Market Roundup
- Japan April corporate service price index +0.7% y/y to 102.8, March rev +3.1%.
- China top banking regulator warns of rising bad loans, credit risks.
- FOMC ViceChair Fischer - Misleading to give so much import to Fed's first rate hike, rate cycle determined by data/not date, Fed funds to 3.25- 4% by '18.
- Cleveland Fed Mester - Regulation should be main tool against bubbles, impact of low rates-unconventional policy on financial stability a concern.
- Canada FinMinistry - Germany G7 will discuss FX, unlikely to yield communiqué.
- ESM Regling - Time running out for Greece.
- Riksbank DepGov Jochnick - Underlying inflation on way up, would act if SEK threatens inflation.
- NZ April trade balance NZ$123 mln surplus, annual balance to April NZ$2.62 bln deficit, NZ$100 mln surplus, NZ$2.79 bln deficit eyed.
Economic Data Ahead
- (0315 ET/0715 GMT) Switzerland Q1 non-farm payrolls; last 4.23 mln.
- (0330 ET/0730 GMT) Sweden April PPI; last +0.3% m/m, +2.3% y/y.
- (0600 ET/1000 GMT) UK May CBI distributive trades index, 17.0 eyed; last 12.0.
- (0830 ET/1230 GMT) US April durable goods orders, -0.4% m/m eyed; last +4.7%.
- (0830 ET/1230 GMT) US April - ex-defense/ex-def&air, +0.4%, +0.3% m/m eyed; last +3.4%, +0.6%.
- (0830 ET/1230 GMT) US April - ex-transport, +0.4% m/m eyed; last +0.3%.
- (0900 ET/1300 GMT) US March CaseShiller 20, +0.9% m/m sa eyed; last +0.9%.
- (0900 ET/1300 GMT) US March CaseShiller 20, +0.7% m/m nsa, +4.6% y/y eyed; last +0.5%, +5.0%.
- (0900 ET/1300 GMT) US March monthly home price index; last +0.7% m/m, +5.4% y/y.
- (0945 ET/1345 GMT) US May Markit PMI composite - flash; last 57.0.
- (0945 ET/1345 GMT) US May Markit PMI services - flash, 57.0 eyed; last 57.4.
- (1000 ET/1400 GMT) US May consumer confidence index, 95.0 eyed; last 95.2.
- (1000 ET/1400 GMT) US April new home sales, 510k AR eyed; last 480k,-11.4% m/m.
- (1000 ET/1400 GMT) US May Richmond Fed comp/services/mfg shipments indices; last -3, +2, -6.
- (1030 ET/1430 GMT) US May Dallas Fed mfg business index; last -16.
Key Events Ahead
- N/A SNB Citizens' Forum, Chair Jordan in attendance, France BTF note auctions.
- (0400 ET/0800 GMT) Netherlands E2-3 bln 0.25% 2020 DSL auction.
- (0430 ET/0830 GMT) ECB/BdF Noyer annual Paris ACPR press conference.
- (0430 ET/0830 GMT) BoI annual meeting, Gov Visco speech.
- (0500 ET/0900 GMT) Italy E1.5-2 bln 2017 CTZ, E0.5-1 bln 2.6/3.1% 2023/26 BTPei auctions.
- (0530 ET/0930 GMT) EU Moscovici speech in Dublin.
- (0530 ET/0930 GMT) ECB 7-day refi at fixed 0.05%, E88 bln allotment eyed, last E88.4 bln.
- (0800 ET/1200 GMT) Swiss FinMinistry de Watteville speech at Geneva Swiss Press Club.
- (1230 ET/1630 GMT) FOMC ViceChair Fischer speech in Tel Aviv.
FX Recap
EUR/USD is supported below 1.1000 and currently trading at 1.0943 levels. It has made intraday high at 1.0980 and low at 1.0929 levels. Today there is no major data expected from Euro zone. The market is geared up for further downside with the ECB's QE programme and subsequent ramifications, uncertainty of a Grexit, while IMF payments are due in early June and a growing number of Greek officials are telling the markets that there is the possibility that these will not be met. Also, new sentiment on the table in the EZ comes following Spain's local election results. 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 121.84 levels and low at 121.48 levels. Pair is currently trading at 121.80 levels. Today in Asian session Japan released SPPI data with positive numbers but movement is not favourable for JPY. Near term resistance is seen at 122.10 levels and support is seen at 121.10 levels.
GBP/USD is trading around at $1.5451. It made an intraday high at 1.5474 and low at 1.5430 levels. Market is trading almost flat before UK realised sales data. Initial support is seen at 1.5445 and resistance is seen around 1.5537 levels.
USD/CHF is supported above 0.9450 levels and trading around 0.9473 levels and made intraday low at 0.9444 and high at 0.9475 levels. Today Switzerland Employment data will be main focus for the further direction of the parity. 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 0.7826 levels. It has made intraday high at 0.7838 levels and low at 0.7811 levels. Today is data free session for Australia. The greenback gained ground on the back of Friday's strong US inflation data and comments from Fed Chair Yellen, as she stated the Fed is on track to hike rates sometime this year. Initial support is seen at 0.7785 and resistance at 0.7976 levels.
