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Overnight Headlines
- Dollar, Yen Outperform as Stocks Sink Again in Asian Trade
- Chinese Exports Grow at Slowest Rate in Three Months in May
Critical Levels
|
CCY |
SUPPORT |
RESISTANCE |
|
EURUSD |
1.4387 |
1.4558 |
|
GBPUSD |
1.6111 |
1.6403 |
The Euro and the British Pound dropped as much as 0.5 and 0.6 percent against the US Dollar in overnight trade as the greenback enjoyed a broad-based advance on the back of safe-haven demand (see below). We continue to look for EURUSD selling opportunities and have entered long USDCAD as a risk aversion play.
Asia Session: What Happened
|
GMT |
CCY |
EVENT |
ACT |
EXP |
PREV |
|
22:45 |
NZD |
NZ Card Spending - Retail (MoM) (MAY) |
-0.8% |
- |
1.5% |
|
22:45 |
NZD |
NZ Card Spending (MoM) (MAY) |
-0.1% |
- |
1.4% (R-) |
|
23:50 |
JPY |
Tertiary Industry Index (MoM) (MAY) |
2.6% |
2.7% |
-5.9% (R+) |
|
23:50 |
JPY |
Domestic Corp Goods Price Index (MoM) (MAY) |
-2.1% |
0.2% |
0.9% |
|
23:50 |
JPY |
Domestic Corp Goods Price Index (YoY) (MAY) |
2.2% |
2.5% |
2.5% |
|
2:00 |
CNY |
Trade Balance (USD) (MAY) |
$13.05B |
$19.80B |
$11.42B |
|
2:00 |
CNY |
Exports YoY% (MAY) |
19.4% |
20.4% |
29.9% |
|
2:00 |
CNY |
Imports YoY% (MAY) |
28.4% |
22.0% |
21.8% |
The US Dollar and the Japanese Yen outperformed in overnight trade, rising as much as 0.4 and 0.7 percent on average against their leading counterparts as stocks slumped in Asia, boosting safe-haven demand for the former currency and encouraging an unwinding of carry traders funded in the latter (implying a mass exodus out of short-Yen positions).
The MSCI Asia Pacific regional stock index fell 0.3 percent as South Korea’s central bank unexpectedly hiked interest rates, underscoring a trend favoring monetary tightening across the region that threatens growth and underscores already ominous signs of global slowdown through the second half of the year. A report showing Chinese Exports grew at the slowest pace in three months reinforced downward pressure, alluding to withering demand for the wares of the world’s second-largest economy.
Euro Session: What to Expect
|
GMT |
CCY |
EVENT |
EXP |
PREV |
IMPACT |
|
- |
GBP |
NIESR GDP Estimate (MAY) |
- |
0.3% |
Low |
|
6:00 |
EUR |
German CPI (MoM) (MAY F) |
0.0% |
0.0% |
Medium |
|
6:00 |
EUR |
German CPI (YoY) (MAY F) |
2.3% |
2.3% |
Medium |
|
6:00 |
EUR |
German CPI - EU Harmonised (MoM) (MAY F) |
-0.2% |
-0.2% |
Medium |
|
6:00 |
EUR |
German CPI - EU Harmonised (YoY) (MAY F) |
2.4% |
2.4% |
Medium |
|
6:00 |
EUR |
German Wholesale Price Index (MoM) (MAY) |
- |
0.2% |
Low |
|
6:00 |
EUR |
German Wholesale Price Index (YoY) (MAY) |
- |
9.2% |
Low |
|
6:45 |
EUR |
French Industrial Production (MoM) (APR) |
0.4% |
-0.9% |
Low |
|
6:45 |
EUR |
French Industrial Production (YoY) (APR) |
3.9% |
3.3% |
Low |
|
6:45 |
EUR |
French Manufacturing Production (MoM) (APR) |
0.3% |
-1.0% |
Low |
|
6:45 |
EUR |
French Manufacturing Production (YoY) (APR) |
4.1% |
4.6% |
Low |
|
8:00 |
EUR |
Italian GDP s.a. and w.d.a. (QoQ) (1Q F) |
0.1% |
0.1% |
Low |
|
8:00 |
EUR |
Italian GDP s.a. and w.d.a. (YoY) (1Q F) |
1.0% |
1.0% |
Low |
|
8:30 |
GBP |
Industrial Production (MoM) (APR) |
0.0% |
0.3% |
Medium |
|
8:30 |
GBP |
Industrial Production (YoY)(APR) |
1.3% |
0.7% |
Medium |
|
8:30 |
GBP |
Manufacturing Production (MoM) (APR) |
-0.1% |
0.2% |
Medium |
|
8:30 |
GBP |
Manufacturing Production (YoY) (APR) |
3.4% |
2.7% |
Medium |
|
8:30 |
GBP |
Producer Price Index Input n.s.a. (MoM) (MAY) |
-1.0% |
2.6% |
Low |
|
8:30 |
GBP |
Producer Price Index Input n.s.a. (YoY) (MAY) |
16.2% |
17.6% |
Low |
|
8:30 |
GBP |
Producer Price Index Output n.s.a. (MoM) (MAY) |
0.3% |
0.8% |
Medium |
|
8:30 |
GBP |
Producer Price Index Output n.s.a. (YoY) (MAY) |
5.3% |
5.3% |
Medium |
|
8:30 |
GBP |
PPI Output Core n.s.a. (MoM) (MAY) |
0.3% |
0.6% |
Low |
|
8:30 |
GBP |
PPI Output Core n.s.a. (YoY) (MAY) |
3.4% |
3.4% |
Low |
The economic calendar appears uneventful despite a plethora of items set to cross the wires, with only second- and third-tier releases on tap and unlikely to challenge risk sentiment for dominance over currency market price action. With that in mind, S&P 500 index futures are pushing increasingly lower, hinting fears of broad-based global economic slowdown that had weighed on risk appetite throughout the week are back after yesterday’s brief respite. This gives the US Dollar and Japanese Yen room to extend the overnight advance against sentiment-linked currencies. A slowdown in UK Industrial Production growth and softer Canadian Employment figures reinforces the likelihood that the dour mood will prevail through the week-end.
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