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(Q1) Bull Trend Extends

FOREX: The mood music around a potential Covid-19 vaccine improved yesterday,
and the optimistic feel carried over into early Asia trade (but U.S. equity
index futures have just turned red). JPY & USD have now ticked away from worst
levels, while CHF remains the weakest G10 currency. AUD tops the pile ahead of
the release of Australian weekly payroll jobs & wages data and minutes from the
RBA's May monetary policy meeting. AUD/JPY showed above a key resistance area
(Y70.16-19), but has returned below there. GBP is solid, lagging only AUD.
- NZD faded its earlier uptick after news wires carried comments from RBNZ
officials. RBNZ Dep Gov Bascand said that the RBNZ "will evaluate negative rates
alongside other options" and "could expand [its QE plan] if needed", while Asst
Gov Hawkesby said that the central bank expects NZD to continue to depreciate.
- USD/Asia trades on a softer footing, with KRW & MYR leading gains in the
space, as they played catch-up to yesterday's risk rally.
- Final Japanese industrial output, German ZEW Survey, UK labour market report,
as well as U.S. housing starts/building permits headline the data docket today.
Fed's Powell, Kashkari & Rosengren, ECB's Lane & Norges Bank's Olsen will speak.
MNI London Bureau | +44 203-865-3806 |