Tuesday 16th May: European Open Briefing

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Tuesday 16th May: European Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei up 0.15 %, Shanghai Composite fell 0.35 %, Hang Seng lost 0.20 %, ASX 200 gained 0.20 %
  • Commodities: Gold at $1234 (+0.35 %), Silver at $16.70 (+0.35 %), WTI Oil at $49.05 (+0.40 %), Brent Oil at $52.00 (+0.40 %)
  • Rates: US 10-year yield at 2.33, UK 10-year yield at 1.15, German 10-year yield at 0.42

News & Data

  • Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 109.4 (prior 112.3)
  • Australia New Motor Vehicle Sales (YoY) Apr: 0.1%, Prior (-3.00%)
  • Australia New Motor Vehicle Sales (MoM) Apr: 0.3%, Prior (1.90%)
  • RBA: Judged steady rates consistent with achieving sustainable growth and inflation target
  • RBA: Developments in labour and housing markets warrant "careful monitoring"
  • RBA: Housing credit growth continue to outpace income rise, suggesting higher risks associated with household balance sheets
  • RBA: Low wage growth, strong retail competition continues to have "dampening effect" on aggregate inflation
  • RBA: A rise in A$ would complicate economic adjustment
  • Asian stocks set to rise on U.S. cues; oil higher – RTRS

Markets Update:

The US Dollar came slightly under pressure following a report that US President Trump told the Russian Foreign Minister confidential information at their last meeting. USD/JPY fell from 113.75 to a low of 113.40. Meanwhile, the Euro is extending gains and reached 1.0990. The charts are looking increasingly bullish. Should EUR/USD break back above 1.10, a rally towards 1.11 seems likely.

The Pound had a mixed performance in the past days. The recent Bank of England meeting is still weighing on the currency. Heavy resistance is seen ahead of the 1.30 level, but GBP/USD has been able to stay bid for now. Support is seen at 1.2880 and 1.2840.

AUD/USD remains weak. Resistance ahead of 0.7450 proved to be strong yesterday, and the pair retraced the recent gains in Asia. A break back below 0.74 would signal a retest of 0.7340 support.

Upcoming Events:

  • 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

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