Global Markets:

  • Asian stock markets: Nikkei down 0.90 %, Shanghai Composite gained 0.50 %, Hang Seng up 0.05 %, ASX rose 0.60 %
  • Commodities: Gold at $1202 (-0.20 %), Silver at $17.06 (-0.50 %), WTI Oil at $50.36 (-2.00 %), Brent Oil at $58.12 (-1.65 %)
  • Rates: US 10 year yield at 1.991, UK 10 year yield at 1.602, German 10 year yield 0.214

News & Data:

  • Japan National Core CPI 2.2 % y/y, Expected: 2.1 %, Previous: 2.2 %
  • Japan National CPI 2.2 %, Previous: 2.4 %
  • Japan Tokyo Core CPI 2.2 % y/y, Expected: 2.2 %, Previous: 2.2 %
  • Japan Tokyo CPI 2.3 % y/y, Previous: 2.3 %
  • Japan Unemployment Rate 3.5 %, Expected: 3.5 %, Previous: 3.6 %
  • Japan Retail Sales -1.8 % y/y, Expected: -1.5 %, Previous: -2.0 %
  • Japan Household Spending 0.8 % m/m, Expected: 0.5 %, Previous: -0.3 %
  • Japan Household Spending -2.9 % y/y, Expected: -3.2 %, Previous: -5.1 %
  • PBOC Fixes Yuan At 6.1397 (previous 6.1375)

Markets Update:

After a third failure to sustain momentum above 1.1030, EUR/USD fell sharply and extended losses towards 1.0855 overnight. Price action suggests further losses are ahead, as bears clearly remain in control. Dealers report decent selling interest in the 1.0945/50 area and then again at 1.1000/10. Similar price action in GBP/USD, which almost reached 1.50 after better than expected UK retail sales. It stopped just a few pips shy of the level and then eventually fell back to 1.48. Next key support at 1.4720 and then 1.4685. USD/JPY bounced just ahead off the pivotal 118.20 support area and made it back above 119.00. The major obstacle remains the 120.00 level, and until we get a clear break above, the overall bias remains bearish.

Upcoming Events:

  • 07:45 GMT – French Consumer Confidence (93.0)
  • 08:30 GMT – Swedish Retail Sales (0.3 % m/m)
  • 08:45 GMT – Bank of England Governor Carney speaks
  • 09:00 GMT – Italian Industrial New Orders
  • 09:00 GMT – Norwegian Unemployment Change (89k)
  • 09:00 GMT – Norwegian Unemployment Rate (3.0 %)
  • 09:15 GMT – Bank of England MPC Member Broadbent speaks
  • 10:00 GMT – Italian Retail Sales (0.1 % m/m)
  • 10:30 GMT – FOMC Member Fischer speaks
  • 12:30 GMT – US GDP (2.4 % q/q)
  • 12:30 GMT – US GDP Price Index (0.1 % q/q)
  • 14:00 GMT – US Michigan Consumer Sentiment (92.0)
  • 19:45 GMT – Fed Chair Yellen speaks