Global Markets: 

  • Japan (JPY) Leading Index (MAY) [F]: 104.8, Previous: 105.7
  • Japan (JPY) Coincident Index (MAY) [F]: 111.3, Previous: 111.1
  • Japan (JPY) All Industry Activity Index (MAY) (m/m): 0.6%, Expected: 0.6%, Previous: -4.6%
  • China (CNY) CB Leading Index (m/m): 1.3%, Previous: 0.7%
  • Asia Stock Markets: Nikkei and Shanghai Composite up 1 %, Hang Seng gained 1.45 % and ASX is unchanged on the day
  • Commodities: Gold down 0.40 % at $1309, Silver dropped 0.40 % to $20.92, Crude Oil rose 0.30 % to $103.15
  • Rates: US 10YR yield stands at 2.475

 FX Update: 

  • AUD – AUD/USD fell to a low of 0.9360 as traders were positioning themselves for dovish comments from RBA Governor Stevens. However, he did not mention the Aussie in his speech and a short squeeze up to 0.9395 followed. The levels haven’t changed much from yesterday morning and Asia is still reporting offers at 0.9420 with stops resting above. Key short-term tech support lies at 0.9330 (07/16 and 07/18 low).
  • CAD – Very quiet here. Offers linked to option gamma noted at 1.0760, while demand from corporate names and leveraged funds seen from 1.0710 down to the big figure.
  • EUR – EUR/USD spent the Asia session within a 8 pips range. Yesterday, there was talk of bids from Asian sovereign names in front of the 1.35 level and the Asian desks also see solid bids from various names scattered below 1.3515. To the topside, offers resting from 1.3540 up to 1.3560 and larger stops starting at 1.3580.
  • GBP – There was some position covering yesterday ahead of the big Wednesday, when we have the Bank of England meeting minutes and Governor Carney speaking. Cable was able to bounce off the 1.7060 support level and slowly made it to 1.7080 during the Asian session. Positioning remains crowded and specs are unlikely to be keen buyers ahead of the BoE/Carney unless we see a larger dip. Key tech support at 1.7030, 1.6990 and 1.6920.
  • JPY – Japanese markets opened after the holiday yesterday and the Nikkei traded instantly higher. Semi-official bids reported sub-101.15 and prime brokers note that large sell stops begin at 100.75/80. The focus today lies on US CPI data and Existing Home Sales figures.

 Upcoming Events: 

  • 12:30 GMT – US Core CPI (0.2 % MoM, 2.0 % YoY)
  • 12:30 GMT – US CPI (0.3 % MoM, 2.1 % YoY)
  • 14:00 GMT – US Existing Home Sales (1.7 % MoM, 4.98M)