Headlines:
Major currencies move back to little changed on the dayJapan chief Cabinet secretary says closely watching FX movesLatest poll sees Le Pen’s faction winning 37% of votes in first round of French electionWhat are the main events for today?ECB’s Villeroy: Disinflation process is on trackFed’s Barkin: Policy tightening will eventually slow the economy furtherFed’s Barkin: I don’t think forward guidance is particularly helpful right nowFrance June preliminary CPI +2.1% vs +2.3% priorSpain June preliminary CPI +3.4% vs +3.3% y/y expectedItaly June preliminary CPI +0.8% vs +1.0% y/y expectedGermany June unemployment change 19k vs 15k expectedGermany May import price index 0.0% vs vs +0.2% m/m expectedUK Q1 final GDP +0.7% vs +0.6% q/q prelim
Markets:
AUD leads, CHF lags on the dayEuropean equities mixed; S&P 500 futures up 0.3%US 10-year yields up 1.6 bps to 4.303%Gold up 0.3% to $2,333.81WTI crude up 0.7% to $81.42Bitcoin up 0.2% to $61,542
It was a more tentative session for FX, with traders seeing little appetite to move before we get to the US PCE price data later today.
We got some inflation data from France, Spain, and Italy but that failed to move the needle in the euro. The single currency is also stymied by larger option expiries on the day, layered between 1.0650 to 1.0725.
Overall, major currencies saw little appetite with dollar pairs now keeping roughly 0.1% changed across the board. USD/JPY remains one to watch, this time easing slightly during the session from 161.00 to 160.60 currently.
In the equities space, French stocks are lagging as investors sense caution ahead of the first round of the elections this weekend. That will also be a risk factor for the euro over the next two weeks. US futures are looking modestly optimistic, after having seen tech shares lead the bounce yesterday.
It’s over to the US PCE price data to see what that has to offer next. And just be wary of potential month-end and quarter-end shenanigans ahead of the London fix too.
Have a great weekend, everyone.
This article was written by Justin Low at www.forexlive.com.
