A parade of central bank speeches will make headlines Thursday, giving investors the latest clues on the evolution of monetary policy. Stay on top of the markets with a glimpse into the 17 May Market Moving Fundamental Events Analysis.
17 May, HotForex – Yields continued to trend higher during the Asian session. 10-year JGBs are up 0.6 bp at 0.051%, bonds in Australia and New Zealand underperformed again, while Chinese bonds dodged the trend and the 10-year yield dipped 0.4 bp. Treasury yields are up 0.6 bp at 3.102%.
Asian Market Wrap
Stocks in Asia struggled with Treasury yields above 3.1%. Positive momentum from the U.S. session didn’t lead to a broad rise in Asia. Topix and Nikkei are up 0.54% and 0.71% respectively, but the Hang Seng lost earlier gains and is down -0.07%, the CSI 300 lost -0.45% and the ASX -0.34%. U.S. stock futures are also under pressure.
European stock futures meanwhile are mixed, with GER30 and UK100 underperforming the latter hit by a stronger pound, which is underpinned by reports that the U.K. government has approved a plan to stay in the EU custom’s union. Today’s calendar has Eurozone trade data, bond auctions in France and Spain as well as ECB speak from Constancio.
The dollar and yen traded moderately lower during the Tokyo session, ahead of the London interbank open. USDJPY has oscillated in the lower 110.0s, holding in a consolidation below the 13-week high that was posted yesterday at 110.45. The intraday low so far is 110.07.
Sterling rallied on reports that the UK government will agree to staying in the EU’s customs union, which is a last resort “backstop” plan to avoid the imposition of a hard Irish border, while above-forecast Australian employment data gave the Australian dollar a lift. The euro managed to recover some of ground lost yesterday, which was seen amid unsettling political news in Italy.
EURUSD yesterday clocked a low of 1.1763, a five-month nadir, in what is now the fifth consecutive weekly decline the pairing has seen, before rebounding to a 1.1817 today, and then turning lower once again, back under 1.1800. Geopolitical developments (primarily relating to Iran and North Korea), along with the political evolutions in Italy, and incoming data will remain determinants of market direction.
Main Macro 17 May Market Moving Fundamental Events Analysis
- ECB Vice President Vitor Constancio speech
- US Jobless Claims – Expectations – are estimated to rebound 9k to 220k in the week ended May 12 from the prior two weeks’ level of just 211k.
- Philly Fed Index – Expectations – may slip to 22.0 in May down from 23.2.
Support & Resistance Levels
This article about 17 May Market Moving Fundamental Events Analysis was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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