FX News Today
Asian Market Wrap: 10-year Treasury yields are down -1.3 bp at 2.936%, 10-year JGB yields are down -1.0 bp at 0.063% and long term yields are also down in Australia and New Zealand. BoJ didn’t scale back its bond purchases at today’s regular operation thus helping to ease concerns of policy tweaks. Hopes of stimulus measures in China continue to battle with trade jitters ahead of Trump’s meeting with European commission President Juncker and Asian markets are mixed, with Chinese underperforming and correcting some of the recent gains. Nikkei is up by 0.41%. US stock futures are heading south, Oil prices are higher and the September future is trading at USD 68.79 on a stock pile decrease.
FX Update: The Aussie took a dip on Australian CPI data, which came in at 0.4% q/q in Q2, below the median forecast for 0.5%. AUDUSD fell nearly 0.5%, making an intraday low of 0.7392. Elsewhere, the Dollar majors have shown little net change. Commitment in markets has been limited, with strong corporate earnings and China’s course for fiscal stimulus offset by concerns about long-term trade protectionism. The Yuan logged fresh lows after PBoC set the USDCNY reference rate above 6.8. The focus today will fall on the meeting between President Trump and European Commission President Juncker, where few are holding out for any breakthrough on their differences on trade. USDJPY has remained settled in the lower 111.0s, above the 2-week low that was printed on Monday at 110.75, and EURUSD has held in a narrow range in the upper 1.1600s.
Charts of the Day
Main Macro Events Today
- German IFO – Expectations – The latest German orders data showed a stronger than expected recovery – this is expected to help stabilize the Ifo reading, although after the revamp on the index to include the services sector, manufacturing doesn’t have quite the dominant role it used to have in the key German business confidence readings. Indeed PMI readings today showed services confidence falling against a pick up in manufacturing confidence. Against that background, the July Ifo is expected to be steady at 101.8.
- US New Home Sales – Expectations – expected to fall 3.0% in June to 668k, following a 6.7% surge to 689k in May that reflected firm sales in the South.
- Crude Oil Inventories
- President Trump and European Commission President Juncker Meeting
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Andria Pichidi
Market Analyst
HotForex
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