Market Roundup
- Japan’s national CPI y/y stands at 0.5 pct vs 0.2 pct previous release.
- Japan’s national core CPI y/y stands at 0.5 pct vs 0.4 pct previous release (expected 0.5 pct).
- U.K.’s GFK consumer confidence stands at -11 vs -14 previous release (expected -14).
- PBOC keeps one - year loan prime rate unchanged at 4.15%. The five-year LPR also remained the same at 4.80%.
Economic Data Ahead
- (0200 ET/0700 GMT) German GFK consumer climate.
- (0230 ET/0730 GMT) Thailand forex reserve, currency swaps.
- (0245 ET/0745 GMT) France consumer spending, PPI.
- (0300 ET/0800 GMT) Taiwan export orders, money supply.
- (0330 ET/0830 GMT) Hong Kong CPI.
- (0400 ET/0900 GMT) Italy business confidence, consumer confidence.
- (0400 ET/0900 GMT) Spain trade balance.
- (0400 ET/0900 GMT) Euro zone current account.
- (0430 ET/0930 GMT) UK GDP, current account, public sector net borrowings.
- (0500 ET/1000 GMT) Italy PPI.
- (0600 ET/1100 GMT) Italy trade balance.
- (0600 ET/1100 GMT) Brazil FGV consumer confidence.
- (0630 ET/1130 GMT) India FX reserves, bank loan growth, deposit growth.
- (0700 ET/1200 GMT) Brazil mid month CPI.
- (0730 ET/1230 GMT) Brazil current account, foreign direct investment.
Key Events Ahead
- (0600 ET/1100 GMT) UK MPC member Haskel’s speech.
- (0700 ET/1200 GMT) BOE quarterly Bulletin.
FX Recap
USD: The U.S. dollar index that tracks the greenback against a basket of other currencies inched up 0.05% to 97.42.
EUR/USD: The euro rises gradually against U.S. dollar and remains well supported above $1.11 mark. It made intraday high at $1.1124 and low at $1.11113 mark. A sustained close above $1.1149 will drag the parity higher towards key resistances around $1.1220, $1.1390, $1.1472, $1.1550, $1.1620 and $1.1820 marks respectively. On the other hand, a consistent close below $1.1113 will drag the parity down towards key supports around $1.1079, $1.1026 and $1.0852 levels respectively.
USD/JPY: The Japanese yen remains almost unchanged after national CPI, core CPI data. The pair is currently trading around 109.30 mark. It made intraday high at 109.40 and low at 109.29 levels. A sustained close above 109.54 is required to take the parity higher towards key resistances around 112.60 and 113.98 marks respectively. Alternatively, a daily close below 109.30 will drag the parity down towards key support around 108.40, 106.90 and 104.20 marks respectively.
GBP/USD: The pound trades marginally higher on robust GFK consumer confidence data. A sustained close below $1.3008 requires for dragging the parity down towards key support around $1.2820, $1.2644 and $1.2352 mark respectively. On the other side, key resistances are seen at $1.3050, $1.3134, $1.3335, $1.3422 and $1.3515 levels respectively.
AUD/USD: The Aussie strengthens against U.S. dollar and touches $0.69 mark in early Asia. The pair made intraday high at $0.6900 and low at $0.6882 levels. A consistent close below $0.6851 requires for downside rally towards $0.6704 mark. On the other side, a sustained close above $0.6909 will take the parity higher towards $0.6977 and $0.7076 levels respectively.
NZD/USD: The New Zealand dollar remains almost unchanged against U.S. dollar. The pair is currently trading around $0.6597 mark. Pair made intraday high at $0.6613 and low at $0.6595. A sustained close above $0.6607 requires for the upside rally. Alternatively, a consistent close below $0.6544 will take the parity down towards key supports around $0.6424, $0.6323, $0.6236 and $0.6196 levels respectively.
Equities Recap
Japan’s Nikkei was trading 0.06 pct higher at 23,870.20 points.
Australia’s S&P/ASX 200 was trading 0.16 pct lower at 6,822.20 points.
Hang seng was trading 0.46 pct higher at 27,929.50 points.
South Korea’s Kospi was trading 0.27 pct higher at 2,201.20 points.
Taiwan’s TWII was trading 0.20 pct lower at 11,996.37 points.
India’s NSE was trading 0.24 pct higher at 12,288.50 points and BSE sensex points 0.26 pct higher at 41,768.66 points.
Commodities Recap
Gold hovers around $1,480 mark. It moves in stiff boundaries from $1,487 to $1,455 mark. A sustained close above $1,490 requires for the upside rally. On the other side, a consistent close below $1,455 will drag the parity down towards key supports around $1,440, $1,422 and $1,407 mark respectively.
Oil price remains well supported around 3 - month highs on Friday. Brent crude futures rose 0.03% to 66.56 a barrel, whereas the U.S. WTI crude was down 0.15% at $61.09 per barrel.
Treasuries Recap
The Australian 10-year bond yield hit 5 - week high during early Asian session on Friday as the U.S.-China trade deal optimism flooded investor positive sentiments. The yield on Australia’s benchmark 10-year note, which moves inversely to its price, jumped 7 basis points to 1.297 percent, the yield on the long-term 30-year bond also surged 7 basis points to 1.906 percent and the yield on short-term 2-year gained nearly 6 basis points to 0.877 percent.
The yield on 10-year Japanese government bond hits 1 - week high on Friday following upbeat comments from Bank of Japan Governor Haruhiko Kuroda. The yield on the benchmark 10 - year JGB note, which moves inversely to its price, rose nearly 1 basis point to 0.007 percent, the yield on the long-term 30 - year climbed 1-1/2 basis points to 0.435 percent and the yield on short-term 2 - year remained steady at -0.099 percent.
