Market Update - August 8 - Risk Appetite Picked Up
🇨🇳 Chinese exports tumble as post-pandemic economic woes deepen. Another weak round of data weighed on confidence overnight. Hang Seng currently down -1.9%, CSI 300 also in red.
📊 Nikkei and ASX managed small gains after a stronger close on Wall Street. European and US futures also in red, however, as growth optimism fades.
💲 USD Index choppy, holds close to 102. EUR and GBP corrected amid weak economic data and as confidence in soft landing for US strengthened.
🛢 USOil has corrected from recent highs, currently settled at $80.90.
🧈 Gold ranging within $1930-$1938.
👉 Biggest FX mover: NZDUSD down by -0.76%, broke August lows at 0.6060. Next immediate support levels 0.6050 and 0.6030.
📢 Today: FOMC Member Harker, Earnings: Eli Lilly, UPS, Duke Energy.
August 7 - 'Soft landing' or even 'no landing'?
💼 The NFP showed the labor market is cooling, providing the spark for the bond market to correct from the post-Fitch and supply-driven selloff.
📉 Yields pulled back from multiyear highs.
📊 Asian share markets were in a cautious mood, JPN225 flat, UK100 0.5%, US500 +0.3% & US100 +0.5%.
💲USDIndex rose at 102.05, EURUSD fell to 1.0980, USDJPY recovered some losses at 142.30. Cable holds at 1-mth lows, at 1.2720.
🇺🇸 The 'soft landing' or even 'no landing' narrative is gathering momentum. JP Morgan became the latest Wall Street bank to delay their US recession call.
🇩🇪 Germany's industrial production contracted in June, leaving the risk of a downward revision to Q2 GDP.
🛢 USOil at $82.85 after Saudi Arabia & Russia confirmed that they will extend voluntary output cuts.
💰 79% of companies that have released earnings beat forecasts.
🇪🇺 EU companies suffer a €100bn hit from Russia operations.
📢 July CPI and Disney earnings are in focus this week.
48 sessions: this is how long it has been since the last time the #US500 was down more than 1%. Fitch's downgrade was a good excuse to sell and the #US100 fell 2.21%. Rates were sold, especially on the long end which led to a steepening of the curve again (2y10y now @ -77 bps). A much higher than expected #ADP figure (+324k) helped the selling pressure on bonds and helped push #XAU higher. #BOJ just implemented its second unscheduled bond buying intervention as the JPY sank. Today #BOE awaits: expectations are for a difficult choice between 50 or 25 bps with a focus on a quantitative tightening hike. The easing cycle started in South America where Brazil cut 50 bps yesterday after Chile already did. Finally, tonight #Amazon & #Apple will report: the implied movements after the results are 5.9% & 1.59% respectively.
Today: EU PPI, BOE IR Decision, US Jobless Claims, US Factory orders, Services PMI.
Biggest Mover: (@6:30 GMT) Coffee (+1.64%) trading at @ $167.45.
#HFM
#RBA left rates unchanged at 4.1% against expectations: recent CPI and PPI data must have weighed on the decision. However the bank stated that ''further monetary policy tightening may be required'' as inflation ''is to return to the target range of 2-3% by 2025''. In China Caixin Manufacturing shrank to 49.2 in July and house sales figures reported the largest dip in a year. #HSBC reported an 89% rise in pre-tax profit. #Yen is tumbling and the Japanese Minister of Finance Suzuki is back to the rhetoric of ''closely monitoring the market''. US markets were up again and #US500 has not had a >1% drop in 41 days now; Russell 2000 has been the monthly best performer testifying to how the rally is no longer driven only by Tech mega-caps. This is the busiest week of the earnings season and after more than 160 #SP500 companies have already reported: today we await Pfizer, Caterpillar, Norwegian, AMD, MicroStrategy.
Today: DE, EU unemployment, US-CA-SP- IT-FR-DE Manufacturing PMI, US Jolts Openings
#HFM
China stocks rallied and hit a 6-week high, as investor confidence in official stimulus measures strengthened. Property, financial and consumer related stocks in particular benefited. BoJ signalled a widening of the band for the 10-year yield, which was taken as a sign of policy normalisation. Ueda vowed to keep easing. Yen rallied as a result. Bunds are selling off in early trade, after much stronger than expected French GDP numbers and as markets continue to digest yesterday's ECB announcement. French inflation dropped to 5%, lowest for 16 months. In US, much stronger than expected GDP, tighter than projected jobless claims, a pop in durable goods orders, a bounce in pending home sales, and a narrowing in the goods trade deficit boosted risk for a 12th FED rate hike. Bonds and Stocks selloff. Gold drifted to $1941 from $1980, amid strong US data.
Today: German CPI, Canadian GDP and US PCE, Earnings: Exxon Mobil, Procter & Gamble, Chevron etc. Biggest Mover: (@6:30 GMT) AUDJPY (-1.31%) bottomed at $91.78.
Optimism in China's recovery has made a comeback and investors are buying into hopes that decisive stimulus action from Beijing will boost domestic demand. Chinese equities jumped on Tuesday, after the country’s ruling politburo vowed to boost employment and revive a “tortuous” economic recovery. JPN225 struggled through and gains in Australia were much more muted. Futures in Europe and US haven't moved much as markets turn cautious ahead of this week's key central bank announcements in Germany, US and Japan. Wheat prices climbed to a 5-mth high on Tuesday, as Russian assaults against Ukrainian ports that ship the grain intensified. Today – Germany’s Ifo business survey and IMF publishes an update to its World Economic Outlook. Earnings: Microsoft, Alphabet, Visa, Verizon, UBS, Nextera.
Biggest Mover: USOIL spiked to $79.16 while today it sustains gains above 78 territory.
It has been a mixed session on Wall Street where US500 and US100 lost 0.7% and 2.3% respectively but US30 wrapped up a ninth day of wins, its longest winning streak since 2017. This can feel like rotation after the blistering tech driven rally but it is also somehow reflective of the mixed earnings and economic data that are coming out. 73% of the companies that have already reported beat, but the number is down from >80% earlier this week; job market looks strong while manufacturing data are not. Bonds sold off, USD has been consistently bid and Gold retreated. Overnight, the Japanese headline CPI was slightly higher than expected but JPY is still offered. Retail sales in UK were a beat that is helping demand for GBP.
OIL is headed north, USOil regained $76. Agriculturals have been rallying and it's good to keep an eye on them for future inflation developments.
Biggest Mover (@06:30 GMT) Sugar (+2.62%), trading at $24.68 along its ascending channel, RSI at 69.28, MACD Positive, above its long term H1 MAs
A slew of misses among economic US data just passed unobserved. Retail Sales disappointed for the 6th time out of the last 8 releases: after adjusting for inflation they are set for the 8th consecutive YoY decline, the longest since 2009. Industrial production missed too. Instead, the company’s earnings are doing great: of the 38 companies in the US500 that have reported results, 82% have exceeded expectations. The median expectation however is for an average 7.1% decline in Q2. The US30 notched its 7th straight positive session for its longest string of gains since MAR 2021 exploding above its 2023 highs. Consumers, Industrials, Financials outperformed last month. All 3 majors notched their highest closes since 04/2022. Microsoft has hit new all time highs after revealing pricing for its new AI subscription.
Today – EU HICP, Earnings from NFLX, TSLA, GS & IBM.
Biggest Mover (@06:30 GMT) XRPUSD (+4.95%) is targeting last Thursday close at $0.8125. RSI at 73.27, MACD positive, 200-day MA is 40 cents lower.
Today, futures slightly negative and APAC in red: China is heavy (-1.48%) after the disappointing GDP Y/Y figure (+6.3% vs +7.2% exp), retail sales growing only +3.1% and the PBOC that left its midterm lending facility unchanged despite rising calls for further stimulus. Japan's markets are closed for holidays and trade in HK has been halted due to weather conditions. The Sp500 and Nasdaq closed in red last Friday, however, finishing above previous yearly highs. Strong economic data, specifically Michigan Consumer Confidence renewed selling on the short end of the curve. Crude has been sold, after news of the resumption of production at Libya's largest oil field. JPMorgan’s 2nd-quarter net income surged 67% to $14.5 billion. Citi's earnings and revenue beat but its shares sank 4.05%. Today, Lockheed Martin & Charles Schwab will report.
Biggest Mover @ (06:30 GMT) Copper (-1.07%) it is down from resistance zone and rejected by a probable trendline. RSI > 50, MACD still positive, MA200 at $3.85.
USDIndex slipped to 100. USDJPY holds at 138, Sterling strengthened to $1.30 for the first time since April 2022 and EURUSD broke 16-mth resistance and 200-WMA at 1.1100. 25 bp increase from BoC as expected, expectations for ECB and BoE tightening. The cooler than projected CPI propelled bonds sharply higher as the markets perceived the upcoming 25 bp Fed rate hike would be the last. The rally picked up steam as shorts scrambled to cover and as technical buying picked up. Yields closed at 2-wk lows. However today, stock markets continued to rally overnight, buoyed by stimulus hopes for China and optimism that the Fed is nearing the peak of the current tightening cycle, and the tumble in rates further supported the US100. USOil spiked to 75.88 after the new data showed rising Chinese imports of the fuel and traders reacted to softening US inflation.
Gold - extended to $1962 as Dollar and Treasury yields corrected.
Yields have extended lower as bonds correct from the big selloff since late June. Wall Street finished with modest gains led by the US30 0.62% increase. Asian stocks rose today after Beijing said it would extend measures designed to support the country’s indebted property sector and traders anticipated further stimulus. UK wage growth higher than expected in May. Overall employment numbers lifted more than expected in the 3 months to May, but June payrolls reading unexpectedly declined. German inflation rose in June, interrupting a steady decline since the start of the year. USDIndex slumped to 101.32 from 102.56. USDJPY drifted to 140.56 from 141.46. GBP and EUR gained ground, breaking 1.10 and 1.29 highs. Today – German ZEW Economic Sentiment, Fed's Bullard Speech.
Biggest Mover @ (06:30 GMT) USDJPY (-0.41%) dipped to 140.50. Fast MAs aligned lower, MACD lines negatively configured with RSI at 29 and flat and Stochastic at 25 but slightly higher.
And that's great news, especially since the average monthly payment for a 200k mortgage has risen by $50 in one week with the 30y fixed mortgage rate up to 7.22%.
ADP doubled expectations (+497k vs +228k expected.) The reaction was immediate: yields rose strongly, USD index popped while selling pressure on stocks intensified, SP500 down > 1% at some points.
Such strong data have raised expectations of a new July Fed hike to 91% while the UK terminal rate is now expected to top 6.5% in Mar 2024.
Today - NFP (225k expected, down from +339k last month) Hourly Earnings and Unemployment.
Biggest Mover @ (06:30 GMT) Coffee (+0.66%) rebounds off $155 after a 2-wk long drop. Both MACD and RSI are negative, the latter not being particularly oversold. 50 and 200 MAs are in the $180 area now, $35 higher than the current price.
After 2 days of subdued trading due to holidays in the US, we are back in full swing. Little happened yesterday except for news of new restrictions – this time from China – on the export of two metals critical to chip production, Gallium and Germanium. There was also a virtual meeting between the three biggest powers bidding to reshape the global order dominated by the United States, with Putin, XI and Modi meeting at the Shanghai Cooperation Organisation, demonstrating a fairly close collaboration.
Later today – IT, FR, DE, EU, UK Services/Composite PMIs, EU PPI, US Factory Orders, FOMC minutes.
Biggest Mover @ (06:30 GMT) Sugar (+2.10%) continues its recovery after last week’s drop, trading at $23.37, RSI rising at 41.01, MACD still negative, price between the 50 and 200 MAs.
Core PCE plus GDP data last week helped to give the final boost to close a great H1 for US stocks (and global ones, despite China). Nasdaq rose 38.71% ytd, SP500 is up 8.30% in Q2 and the laggard Dow Jones jumped 4.56% in June alone. Enthusiasm around artificial intelligence and the potential of generative AI have contributed to the market’s gain so far in 2023. Treasuries fell -as USD did- and the 10y2y curve is now at a record 109 bps inversion. APAC started the month with a bang after some good Manufacturing data in China and Japan despite -or maybe helped by- the worrying weakness of their respective currencies. Oil is barely moved, Metals slightly in red, agriculturals quite volatile.
Today US will close early ahead of Independence Day tomorrow.
Biggest Mover @ (06:30 GMT) Sugar (+4.72%%) is rebounding to $22.90 after dropping as low as $21.78. RSI is rising from near oversold levels, MACD is still negative. ATR 10 shows an average movement of 83 cents per day.
Treasury yields finished at/near the day's richest levels even as Powell and his G3 colleagues warned of further tightening ahead. There was also some front-running of month- and quarter-end demand, as well as rebalancing flows given the outperformance of equities (thanks to AI) over Treasuries this quarter. Asia stock markets traded mixed overnight while European futures are down. Markets are still weighing CB comments from yesterday. Ueda seemed to signal a possible policy shift next year. Reuters is reporting that China's major state-owned banks were seen selling dollars again today in exchange for the yuan in the onshore market. USDIndex cleared 103 mark. USDJPY is still at 144.56. GBP & EUR slumped on economic concerns with more rate hikes ahead. USOil are slightly lower from yesterday's highs at $69.75 as the 2nd weekly draw from US crude stockpiles was bigger than expected. Biggest Mover @ (06:30 GMT) Cocoa (+2.46%) rallied to 3344.
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It is going to be another busy week of earnings with major companies from various sectors lined up to present their quarterly earnings results.
🗓️ Check our Earnings Calendar to learn more ➡️ https://bit.ly/earnings_telegram
#hfm #earningseason #disney #siemens
Market Update – August 4: Amazon & Apple deliver. Yields eyeing highs before NFP.
📱 AAPL beats soft expectations, misses on sales: -2% in after-market. AMZN beats earnings expectations and market toasts to cost cuts: +8.5% in aftermarket.
🌍 The 3 major US indices closed in red. This morning price action is favored by Amazon's results.
🔴 Bonds are under pressure, 10y US 4 bps away from its OCT2022 highs before NFP today.
📊 Jobless claims in line after a big beat in data on Wednesday for ADP. NFP expected to be down to +200k in July, the lowest growth since DEC2020.
🛢USOIL recovers $82 on Saudi and Russia extension to cuts to September (Russia down to 300k bpd from 500k).
🌍 PPI in Europe down 6 months in a row, Core down 3 months in a row.
🇺🇸 USDIndex is flat this morning at 102.23, JPY off yesterday's lows, Gold below $1940.
🔜LATER TODAY: EU retail sales, DE Factory Orders, US NFP, Unemployment, Average Hourly Earnings, CA Unemployment.
US #stock futures are falling after Fitch downgraded the US’s rating to AA+ from AAA last night, citing ''an expected fiscal deterioration over the next 3 years''. The agency called out brinksmanship in Washington around debt ceiling negotiations earlier this year. APAC #indices fell led by Japan while #JPY is strengthening on safe haven trading. Manufacturing activity across ASEAN expanded at the slowest pace in 7 months. Bonds are lower around the globe, 10Y US is back above 4%. Weak macro data in US yesterday but particularly eye-catching has been the Crude #Oil inventory data which pointed to a record weekly drawdown (-15.4M): Crude climbed above $82. #Earnings season is more than halfway over with results coming in stronger than expected, 82% of SP500 companies have posted positive surprises.
Today: US ADP National Employment. EARNINGS: PayPal, Qualcomm. Biggest Mover: (@6:30 GMT) JPN225 (-2.42%) in contact with its 50d MA. RSI negatively sloped at 48.36.
#HFM
Last Friday, headline #PCE for June came in at 3% just above the Fed’s target of 2% inflation; Core set at 4.1%. US indices cheered the data, US500 is up 3% in July, the 5th monthly gain in a row. Industrial production y/y fell in Japan; in China, manufacturing PMI contracted (49.3) & the country just issued measures to recover and expand consumption. #JPY keeps collapsing despite the ''adjustment'' on the 10y policy: today BOJ officially announced unscheduled bond buying at 0.60%. Tomorrow night #RBA is expected to raise to 4.35% despite the latest inflation data; later in the week we have #NFP and earnings from #AAPL and #AMZN on Thursday.
Today: Germany retail sales, GDP from IT, SP & EU, European HICP, US Chicago PMI.
Biggest Mover: (@6:30 GMT) Coffee (-2.11%) @ $158.60, heading south towards the recent $154.50 bottom area. RSI downward sloped, MACD negative, 50d-200d MAs downward sloped (and have recently crossed).
#HFM
The day before the all-but-done 25 bp Fed rate, Wall Street rallied, Treasuries slumped, and the USDIndex was little changed. Uncertainty over the FOMC's policy path through the rest of the year limited activity, however, amid position jockeying. Concurrently, Treasury yields edged slightly higher as the market sees increased risk the Fed will tighten further beyond today. China optimism has already faded again and Hang Seng and CSI 300 pared yesterday's gains. Cautious markets are waiting for the Fed announcement today, while weighing China's growth outlook. USDIndex finished at 101.285, down from the earlier peak of 101.64. USDJPY at three days lower at 140.50. GBP spiked to 1.2900 rebounding from 20-DMA. USOil hit a high of $79.73 per barrel. It has not closed with a $79 handle since April 19 and that could prove a difficult a difficult resistance level for now.
Biggest Mover: (@6:30 GMT) AUDJPY (-0.64%) drifted to $94.93 with RSI at 27, MACD negative, while fast MAs aligned lower.
It is all about central bank decisions this week with three major banks on the calendar including the FOMC, ECB, and BoJ, with the markets positioning ahead of these releases. Trading was quiet heading into the weekend while Treasuries have gone through several gyrations in recent weeks amid on-again, off-again expectations regarding the future policy path. Dollar steadied at 100.73 as bearish US Dollar bets prevail. Today, stock markets traded mixed and Japan bourses rallied, as comments and reports suggest the bank sees little need to tweak policy or address the side effects of YCC. Today – Data on Consumer Confidence, Q2 GDP and US inflation. Microsoft, GM, Verizon, Alphabet, Exxon Mobil, Meta and more stocks to watch this week.
Biggest Mover @ (06:30 GMT) EURUSD (-0.54%) return below 1.1100 post German manufacturing PMI.
Yesterday some big names posted their earning results. Goldman Sachs disappointed: profit fell 58% to $1.22 billion, revenue down 8% to $10.9 billion. However, its shares rose almost 1% as the bank was very active in creating low expectations about its consumer banking woes. Tesla booked a record revenue of $24.93 and profits exceeded WS’s expectations but shares sank –4.5% in after-hours as some slowdown in production is expected in Q3. Netflix's revenue rose 3% to $8.19 billion, subscribers jumped 5.9 million but stock plunged -8.6% after the close on revenue's miss. The US indices went up, US30 regained 35k. Overnight, unemployment in AU showed a decrease to 3.5%, making the AUD today’s best performer. China kept its main rate unchanged to 3.55%; bad import / export data, sank JPN225.
Today – EARNINGS from J&J, American Airlines, Blackstone, US Jobless claims.
Biggest Mover @ (06:30 GMT) JPN225 (1.44%%) down to 32400, RSI at 48.45, MACD almost negative, MA (50d) is at 32175.
The earnings season is getting into full swing – BOA, MS, BNY will report today – and the stock market in the DMs cannot help but be bid: the US indices are very close to their YTD highs while the EU ones are not far from them. Today, HK plays the catch up after yesterday’s suspension dragged by real estate and tech. Right now, a 2023 bond of Dalian Wanda -China’s leading commercial property investor- is trading at distressed levels! APAC is in red, with the exception of Japan; most US banks cut their Chinese growth estimates to 5%. No news ftom RBA minutes. Activision up (+3.49%) after MSFT and UK regulators held “productive” talks to finalize the merger; Ford fell after lowering the price of its electric truck (by 10k). Yesterday, the Reuters’ wire report of a Saudi voluntary cut extended to December 2024 was declassified as a ”fat fingers” mistake.
Biggest Mover @ (06:30 GMT) Coffee (-3.07%) is testing last week’s lows, RSI (31.61) & MACD are both negative, MA50 & MA200 are both negatively inclined.
Another soft inflation report in the way of PPI further fueled expectations the FOMC will be done hiking rates after the upcoming 25 bp increase on July 26. That view further fueled the rallies on bonds and stocks, while knocking the USD sharply lower. The bull curve steepened to -86 bps from -89 bps previously. Wall Street climbed on the Fed view, the drop in yields and on strong earning news from Delta and PepsiCo. Bitcoin surged on Friday morning in Asia to breach the $31,000 resistance level, after Ripple Labs achieved a partial victory in its 3-year lawsuit against the SEC. PepsiCo +2.38%, Amazon +2.68%, CRM +1.36% and Tesla +2.17%. USOil spiked to 77.06. Today – Michigan Sentiment Index and European Commission releases Economic Growth Forecasts.
Biggest Mover @ (06:30 GMT) XRPUSD (+75%) rallied to 0.9334.
USD sagged to a 2-mth low and stock markets traded mixed overnight as markets wait for the key US CPI. Wall Street had a modest bid, supported by hopes for a bounce from China from more stimulus, as well as by a surge in Activision Blizzard (+10.02%) after a ruling that will allow Microsoft's $69 bln takeover to go through. Japan's household inflation expectations rose, keeping pressure on BOJ. RBNZ left rates on hold, as expected, but suggested that rates are sufficiently restrictive to bring inflation back to target by 2H 2024. RBA announced changes to its meeting schedule from next year but remains on course for additional tightening. BOE stated that UK economy was proving resilient to the risks posed by higher interest rates, although it would take time for the full impact to feed through. GBP breached 15-mth resistance at 1.2968. USOil remains supported as supply restrictions start to bite, at $74.96. Gold broke 2-mth down channel and extended to $1941.
Today – US CPI, BOC Rate Decision, Fed speeches.
With the jobs report out of the way, attention turns to CPI and Fedspeak. Today, Asian markets traded mixed, with China's economy remaining in focus. Factory prices fell more than anticipated & CPI was also weaker than expected, adding to signs that China is seeing excess supply. China's factory-gate prices fell at the fastest pace in 7 1/2 years in June, while CPI was at its slowest since 2021, adding to the case for policymakers to use more stimulus to revive sluggish demand as China slides to the brink of deflation. Meanwhile, at a conference in France, BOE Bailey rejected calls for setting inflation target higher than 2%. USOil slightly lower after capping best week since April, at $73.13. USDIndex slumped to 101.88. Gold lower at $1923 from $1935 as attention turns to US inflation. Gold had a back to back monthly loss in June.
Biggest Mover @ (06:30 GMT) LTCUSD (-1.82%) dipped to 90.195. Fast MAs flattened, MACD lines still negatively configured with RSI at 33 and flat and Stochastic at 29 and falling.
Last night, the FOMC minutes showed the FED sees more rate hikes ahead but at a slower pace. Policymakers decided against a rate rise, citing the lagged impact of policy and other concerns as reasons to skip the June meeting. However, 12 out of 18 participants expected 2 or more hikes in 2023. Markets showed little reaction with all the moves being gradual during the day but it’s worth noting that the whole yield curve. PMIs, in their Services but especially Composite component are deteriorating in China and Europe, showing that the effects of monetary transmission are beginning to be felt in the economy. On the same note, US factory orders came out lower than expected (+0.3% vs. +0.8% exp). Today's labour data will be preamble to the NFP tomorrow. Treasury's Yellen is kicking off her trip to China.
Biggest Mover @ (06:30 GMT) BCHUSD (+13.21%) keeps benefiting from its listing on EDX markets, now trading at $292.40. RSI at 76.65, MACD positive, ATR 10 shows an average movement of 37.37 USD/day.
After a shorter-than-usual US session yesterday due to today's Independence Day holiday (US cash markets will be closed), which saw only the strong performance of TSLA (+6.9%) stand out after excellent manufacturing and delivery data, the Australian RBA kept rates on hold at 4.1% overnight in a Fed-style move (''more time will help us assess the real consequences of our actions''). The move was expected by 15/31 economists polled by Reuters, with 16 expecting a 25 bps hike. Among yesterday's news, the further 500k bpd cut announced by Russia as well as the extension of the Saudis' 1m bpd cut for another month allowed Crude Oil to soar before fading its gains almost entirely. Also, Nasdaq refiled its Blackrock Spot BTC ETF listing application with the US SEC and BTC took advantage of this to rise above 31k.
Biggest Mover @ (06:30 GMT) NEOUSD (+2.35%) to $9.68, RSI at 59.60, MACD positive and trying to raise its head again after a possible recent double top.
The surprisingly strong GDP revisions and the drop in jobless claims raised fears the FOMC will have to tighten rates further and boosted Treasury yields higher. The bear flattening trade boosted rates to the highest levels since March, the last time the markets fretted over aggressive Fed action. Fed funds futures priced in another hike in coming months. Asian markets traded mixed, European and US futures are mostly higher as markets wait for US PCE numbers after yesterday's strong round of data that lifted Treasury yields.
Biggest Mover @ (06:30 GMT) BCHUSD (+19%) rallied to 322.93 high. Fast MAs flattened, MACD lines are still positively configured with RSI at 80.85 and Stochastic at 57 and falling.
European stock markets are higher in early trade, after a largely stronger session in Asia. Overnight, Treasury yields climbed and Wall Street bounced, supported by strong data. Japan extended the term of its top currency official, which was taken as a sign that officials remain determined to stem the weakness of the currency. Canada CPI slowed to 3.4% y/y in May. Australia CPI cooled at 5.6% in May, faster rate than expected, raising the prospect of a pause in interest rate rises. ECB officials continue to flag that they have more ground to cover on rates, despite the deterioration in confidence indicators. USDIndex returned to 102.29, but remains firmer versus JPY and TRY. USDJPY has cleared the 144 mark, today slightly below. EUR at 1.0939, Pound down to 1.2719. AUD & NZD under pressure after soft inflation data dampened rate hike expectations.
Biggest Mover @ (06:30 GMT) NZDUSD (-1.03%) dipped to 0.6095 (S3). Fast MAs aligned lower, MACD lines negatively configured with RSI at 24.
