Global Markets:

  • New Zealand (NZD) Imports: 3.96B, Expected: 4.00B, Previous: 4.16B
  • New Zealand (NZD) Trade Balance (m/m): 534M, Expected: 667M, Previous: 920M
  • UK markets are closed today for the Spring Bank Holiday
  • US markets are closed today for the Memorial Day holiday
  • Asian equity markets are mostly higher this morning
  • The Nikkei is up 0.70 % and the ASX gained 0.20 %
  • Shanghai gained 0.40 % while Hang Seng has lost 0.15 %

 

The Week Ahead:

There was a risk-on bias on Friday, with US equity markets closing higher on the day and USD/JPY almost reached the 102.00 level on comments from BoJ Governor Kuroda. He said that the US economy is recovering very strongly and faster than Japan’s, so he would be surprised to see further Yen strengthening. EUR/USD settled around 1.3630 for most of the NY session and eventually closed below the 200 daily moving average. GBP/USD suddenly dropped during London session hours, declining from 1.6865 to a daily low of 1.6810. Banks note that there was no fundamental reason, but rather a flow-driven move as longs liquidated their positions. One of the major dealing banks saw decent buying interest on the dip coming from real money funds.

Monday should be a quiet trading day with the UK and US both off for a holiday and no major data releases out of Europe and Asia. On Tuesday, we have the Swiss GDP and Trade Balance release, followed by US Durable Good Orders and two Manufacturing Indices later in the day. Wednesday will be more interesting with Bank of Japan Governor Kuroda speaking in the early Asian session. In the European session, Germany will release it’s Unemployment Rate and Unemployment Change, followed by Consumer and Business Confidence figures out of the Euro Zone. No important US data releases are scheduled for that day.

Thursday will bring US Initial Jobless Claims and GDP data. On Friday, Japan will release several important figures in form of CPI, Unemployment Rate and Industrial Production. In the European session, we then have German Retail Sales and Italian CPI figures. In the North American session, Canada will publish it’s GDP data, while the US will release Personal Consumption and Consumer Sentiment figures.

Good luck trading!

Upcoming Events:

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