French Political Risk Premium Moderates A Little, U.S. Retail Sales & Fedspeak Eyed

Familiar focal points dominate as NY participants filter in.

• There’s been another moderation in French political risk premium, with EGB spreads to Bunds tighter on the day and the CAC 40 edging higher. German ASWs are a touch tighter, playing further into that narrative.
• The latest German ZEW data was softer than expected, while the final Eurozone CPI prints for May confirmed flash readings.
• E-minis are flat on the day.
• Tsy yields are little changed.
• The CHF is the session's outperformer in G10 FX, although ranges remain fairly limited. This comes ahead of Thursday's SNB decision, as markets remain evenly split on the prospects of a follow up rate cut or a hold. Our full preview of that event can be found here.
• Elsewhere, the AUD initially benefitted from a hawkish feel to the post-RBA decision press conference from Governor Bullock. AUD/USD has since faded from best levels as the BBDXY nudges higher.
• Benchmark crude oil futures are just below Monday’s highs. Monday’s rally came alongside better overall risk sentiment, with a break above the 200-DMAs in Brent & WTI noted. Expectations for slightly tighter market balances amid the U.S. driving season also seemed to factor in.
• Fedspeak and U.S. retail sales provide the scheduled highlights from here.
• A reminder that the Juneteenth holiday will impact liquidity and U.S. market opening hours tomorrow (cash equity and Tsy markets will be closed).