Wednesday 10th June: European Open Briefing

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Wednesday 10th June: European Open Briefing 1

Global Markets:

  • Asian stock markets: Nikkei down 0.20 %, Shanghai Composite dropped 0.50 %, Hang Seng rose 0.20 %, ASX gained 0.10 %
  • Commodities: Gold at $1179 (+0.20 %), Silver at $16.03 (+0.50 %), WTI Oil at $60.88 (+1.20 %), Brent Oil at $65.36 (+0.75 %)
  • Rates: US 10 year yield at 2.448, UK 10 year yield at 2.117, German 10 year yield at 0.954

News & Data:

  • Japan CGPI 0.3 % m/m, Expected: 0.2 %, Previous: 0.1 %
  • Japan CGPI -2.1 % y/y, Expected: -2.2 %, Previous: -2.1 %
  • Japan Core Machinery Orders 3.8 % m/m, Expected: -2.0 %, Previous: 2.9 %
  • Australia Westpac Consumer Sentiment -6.9 %, Previous: 6.4 %
  • BoJ Sato: Want To Examine Market Moves When Fed Hike Timing Becomes Clear — RTRS
  • Sato: BoJ See No Need To Change Policy At Present
  • BoJ Gov Kuroda: If Fed Hikes Are Priced In, No Reason For USD To Rise Vs Yen — RTRS
  • RBA Gov Stevens: A$ Exchange Rate Needs To Fall Further
  • Stevens: Monetary Policy Alone Can't Deliver Everything We Need
  • RBA Gov Stevens: Open To Further Easing If Beneficial To Sustainable Growth
  • BoJ Gov Kuroda: FX Hasn't Had Minus Impacts On Overall Economy So Far — BBG
  • BoJ Gov Kuroda: Yen May Not Weaken Much Further On A Real Effective Exchange Rate Basis
  • BoJ Gov Kuroda: Not Considering Excess Reserve Rate Cut — BBG
  • BoJ’s Sato: QQE Should Be Assessed At Each Meeting, She Not Be Taken As A Given — RTRS

Markets Update:

USD/JPY declined sharply after comments from Bank of Japan Governor Kuroda, who said that the Yen might not weaken much further on a real effective exchange rate basis. Japanese officials clearly are not comfortable about seeing USD/JPY trading near 125 and it will be difficult for the pair to make fresh highs unless we get some strong US economic data or hawkish surprise from the Fed. Key support noted at 122.00, followed by 120.60/65. To the topside, intraday resistance now lies at 123.80 and 124.60.

Upcoming Events:

  • 09:00 BST – Norwegian CPI
  • 09:30 BST – UK Industrial & Manufacturing Production
  • 19:00 BST – US Federal Budget Balance
  • 21:00 BST – Bank of England Governor Carney speaks
  • 22:00 BST – RBNZ Interest Rate Decision
  • 22:00 BST – RBNZ Monetary Policy Statement
  • 22:05 BST – RBNZ Governor Wheeler speaks

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