Monday 15th May: European Open Briefing

IC Markets No Comments
Monday 15th May: European Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei down 0.20 %, Shanghai Composite gained 0.30 %, Hang Seng rose 0.70 %, ASX 200 lost 0.10 %
  • Commodities: Gold at $1230 (+0.20 %), Silver at $16.52 (+0.70 %), WTI Oil at $48.65 (+1.70 %), Brent Oil at $51.70 (+1.70 %)
  • Rates: US 10-year yield at 2.33, UK 10-year yield at 1.10, German 10-year yield at 0.39

News & Data

  • China Industrial Production 6.5 % vs 7.1 % expected
  • China Retail Sales 10.7 % vs 10.6 % expected
  • China Fixed Asset Investment 8.9 % vs 9.1 % expected
  • New Zealand Retail Sales q/q 1.5 % vs 1.1 % expected
  • New Zealand Core Retail Sales q/q 1.2 % vs 0.9 % expected
  • Japan PPI m/m 0.2 % vs -0.1 % expected
  • Japan PPI y/y 2.1 % vs 1.8 % expected
  • Australia Home Loans -0.5 % vs 0.1 % expected
  • PBOC sets USD/CNY central rate at 6.8852 (vs. Friday at 6.8948)
  • Russia's Novak: Russia And Saudi Agree Output Cuts Need to Be Extended Until March 2018

CFTC Positioning Data:

  • EUR long 22K vs 2K short last week. Longs increased by 24K

  • GBP short 47K vs 81K short last week. Shorts trimmed by 34K
  • JPY short 36K vs 30K short last week. Shorts increased by 6K
  • CHF short 15K vs 18K short last week. Shorts trimmed by 3K
  • CAD short 86K vs 48K short.  Shorts increased by 38K
  • AUD long 26K vs 43K long.  Longs cut 17K
  • NZD short 11K vs 12K short last week.  Shorts trimmed by 1K

Markets Update:

Markets did not react to the news about another North Korean missile test. Asian stock markets had a solid performance overall, and commodity currencies rose overnight, indicating that risk appetite remains intact for now.

EUR/USD opened in Asia around 1.0930, unchanged from Friday's close. The currency rose on Friday on rumours that the ECB might signal the end of its ultra-loose monetary policy this summer. However, those are still only rumours. EUR/USD faces resistance at 1.0950, followed by 1.10.

USD/JPY recovered slightly overnight. Resistance is now seen at the former support area between 113.70 and 113.80. Key support is noted at 113. Should USD/JPY break below it, further losses towards 112.20 seem likely.

AUD/USD traded in a 0.7385-0.74 range overnight. Resistance at 0.7420/25 has proven to be strong. A clear break above it would then signal a move towards 0.75 though.

Upcoming Events:

  • 10:00 BST – Italian CPI
  • 13:30 BST – US NY Empire State Manufacturing Index
  • 15:00 BST – US NAHB Housing Market Index

The Week Ahead:

Tuesday, May 16th

  • 02:30 BST – RBA Meeting Minutes
  • 07:45 BST – French CPI
  • 09:00 BST – Italian GDP
  • 09:30 BST – UK GDP
  • 10:00 BST – German ZEW Economic Sentiment
  • 10:00 BST – Euro Zone GDP
  • 10:00 BST – Euro Zone ZEW Economic Sentiment
  • 13:30 BST – US Housing Starts
  • 13:30 BST – US Building Permits
  • 14:15 BST – US Industrial Production
  • 14:15 BST – US Manufacturing Production

Wednesday, May 17th

  • 01:30 BST – Australian Westpac Consumer Sentiment
  • 09:30 BST – UK Claimant Count Change
  • 09:30 BST – UK Unemployment Rate
  • 10:00 BST – Euro Zone CPI
  • 15:30 BST – US Crude Oil Inventories

Thursday, May 18th

  • 00:50 BST – Japanese GDP
  • 02:30 BST – Australian Unemployment Rate
  • 02:30 BST – Australian Employment Change
  • 09:30 BST – UK Retail Sales
  • 13:30 BST – US Philadelphia Fed Manufacturing Index
  • 15:00 BST – US CB Leading Index
  • 18:00 BST – ECB President Draghi speaks

Friday, May 19th

  • 07:00 BST – German PPI
  • 09:00 BST – Euro Zone Current Account
  • 13:30 BST – Canadian CPI
  • 13:30 BST – Canadian Retail Sales
  • 15:00 BST – Euro Zone Consumer Confidence

Published by

Avatar

IC Markets

IC Markets is revolutionizing on-line forex trading; on-line traders are now able to gain access to pricing and liquidity previously only available to investment banks and high net worth individuals.