Global Markets:

  • Japan (JPY) Corporate Service Price (APR) (y/y): 3.4%, Expected: 3.3%, Previous: 0.7%
  • China sets Yuan Reference Rate at 6.1687
  • Asian Equity Markets: Nikkei is up 0.75 %, Australia’s ASX unchanged on the day and the Shanghai Composite & Hang Seng both declined 0.20 %
  • Gold at $1291.70, Silver at $19.37
  • Copper at $3.18, Crude Oil at $104.38
  • US 10 year yield at 2.545

FX Flows:

  • AUD – Bank traders saw good offers on the interbank platforms at 0.9265 which held so far. Better selling interest at 0.9275-85, above there, not much resistance until 0.9320.
  • CAD – System funds were sellers of USD/CAD and the pair broke below 1.0850. Bids seen at 1.0820 and in better size ahead of the 1.08 barrier option.
  • EUR – EUR/USD started the day around 1.3651, above the 200 daily MA. Dealers see strong offers resting at 1.3670 with more selling interest pre-1.37. Bids building at 1.3640-45 and large stops through 1.36. No data releases out of the Euro Zone today, so it should stay relatively quiet until the US open.
  • JPY – USD/JPY trading near the Ichimoku Cloud base at 101.92; overnight flows were light. Dealers in Tokyo see solid bids at 101.80-85, but think that the topside will be capped by the 102.25-30 offers in the near-term. There are stops through 102.05, but exporters still have good supply near 102.00.

Upcoming Events:

  • 06:00 GMT – Swiss Trade Balance (+2.10B)
  • 12:30 GMT – US Durable Goods Orders (-0.7 %)
  • 13:45 GMT – US Markit Services PMI (54.5)
  • 14:00 GMT – US Consumer Confidence
  • 14:00 GMT – US Richmond Fed Manufacturing Index (5)
  • 14:30 GMT – Dallas Fed Manufacturing Activity (9.2)