FX News Today
European Fixed Income Outlook: Asian stock markets traded mixed in Asia and trade jitters continue to weigh on sentiment after White House economic adviser Larry Kudlow said the decision to use less harsh measures on Chinese investment than feared did not represent a softer tone in the lingering trade tensions. Topix and Nikkei are mixed at -0.20% and +0.05% respectively. The Hang Seng is up 0.37% and the CSI 300 down -0.02%. US Stock Futures are moving higher, after a negative close on Wednesday and 10-year Treasury yields are up 1.1 bp at 2.836%, while 10-year JGB yields are up 0.1 bp at 0.024%. Emerging market currencies remained under pressure and oil prices are down on the day, but still trading above USD 72 per barrel.
Reserve Bank of New Zealand held rates at 1.75%, matching widespread expectations for no change. The bank said the cash rate will remain at 1.75% “for now.” But they “are well positioned to manage change in either direction — up or down — as necessary.” Recall that in May, Governor Orr said the rate would remain at its current setting “for some time to come.” The Bank remains on hold, with recent soft data delaying the start of rate hikes further into next year.
Charts of the Day
Main Macro Events Today
- German and Spanish Prelim CPI – Expectations – further acceleration in headline rates are expected, after both already reported y/y rates above 2% in May. The German rate is expected to lift to 2.3% from 2.2%, while Spanish HICP is seen at 2.3%, up from 2.1% y/y.
- EU Economic Summit – Expectations – The European Commission’s ESI Economic Confidence reading; is expected to come in just slightly weaker at 112.0, down from 112.5 in May. Preliminary consumer confidence actually declined and industrial confidence is also likely to have dipped again at the end of the second quarter, judging by PMI and Ifo readings.
- US Final GDP & Unemployment Data – Expectations – The final estimate of Q1 GDP is expected to be 2.4%, up from 2.2% in the second release, while initial jobless claims are estimated to rise 3k to 221k in the week ended June 23.
- MPC Member Haldane, Fed’s Bullard and FOMC Member Bostic Speeches
Click here to access the HotForex Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:
[ujicountdown id=”Next Webinar” expire=”2018/06/28 15:00″ hide=”true” url=”” subscr=”” recurring=”” rectype=”second” repeats=””]
Andria Pichidi
Market Analyst
HotForex
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
