European and Canadian traders coming back from vacation can expect a quiet release schedule on Tuesday. A pair of releases from the United Kingdom and United States will generate the bulk of the headlines. What are these releases? Find out as analysts at HotForex offered their 22 May Market Moving Fundamental Moving Events Analysis.
22 May, HotForex – 10-year Treasury yields dropped -0.5 bp to 3.054% overnight, 10-year JGB yields lost most of their earlier gains and are at 0.044%.
Asian Market Wrap
Elsewhere across Asia long yields are mostly down as stock markets struggled without fresh new on Sino-American trade in holiday hit trade. Hong Kong and South Korean markets were shut for Buddha’s Birthday and elsewhere across Asia markets yesterday’s recovery fizzled out. Nikkei lost -0.23% as the Yen strengthened and despite reassurance of ongoing monetary stimulus from the BoJ. U.S. stock futures are still slightly higher. Oil prices are up and the WTI future trading at USD 72.49 per barrel.
European stock futures are mixed, with the GER30 outperforming in catch up trade after yesterday’s holiday and aided by a weaker EUR. The UK100 future meanwhile is heading south after a largely weaker session in Asia. Today’s calendar focuses on the U.K., which has public finance data, the CBI industrial trends survey as well as a number of BoE speakers.
USDJPY has traded moderately softer during the Tokyo session, retreating below 111.00. This interrupts a run higher that yesterday left a four-month high at 111.39. EURJPY and AUDJPY, among other yen crosses, are also softer today. Stock markets in Asia have been mixed-to-lower today. BoJ-speak from the Governor Kuroda and Deputy Governor Wakatabe today reaffirmed commitment to monetary stimulus, with the former saying the central bank is aiming to lift CPI to the 2% target as soon as possible and the latter saying that target can be achieved with prevailing policy.
The remarks follow Friday’s weak CPI data of Japan, where headline April CPI fell to 0.6% y/y from 1.1% y/y in March and core CPI ebbed to 0.7% y/y from 0.9% y/y. The outcomes undershot market expectations, and have maintained expectations for the BoJ’s ultra-accommodative monetary policy to sustain. A Reuters survey of market economists earlier last week found that over half of respondents were expecting the central bank to refrain from exiting stimulative policy until 2020.
Main Macro 22 May Market Moving Fundamental Events Analysis
- Speeches: MPC Member Vlieghe, MPC Member Saunders, BOE Gov. Carney and BOE Remsden
- UK Public Sector Net Borrowing – Expectations – at 7.1B pounds deficit in April from the 0.3B surplus seen in March.
- UK Inflation Report Hearings
Support and Resistance Levels
This article 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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