A series of high-profile data releases will make their way through the financial markets on Friday, giving investors the latest glimpse of key European and North American economies. Lets now look at some events to watch for Friday morning with the 25 May Market Moving Events Fundamental Analysis from HotForex.
25 May, HotForex – Long yields broadly corrected across Asia, and 10-year JGB yields dropped 0.5 bp to 0.034%, as stock markets struggled with geopolitics back on the agenda after Trump cancelled the North Korea summit.
Asian Market Wrap
Pyongyang seemed to offer an olive branch and Asian markets are up from earlier lows while U.S. futures are posting gains. Hang Seng and CSI 300 are still down -0.44% and -0.11%. Nikkei and Topix are up 0.22% and down -0.14% respectively, as a weaker yen added some support. Treasury yields gained 1.1 bp and are at 2.988%, still clearly below recent highs. Oil prices fell after Russia’s energy minister suggested that OPEC and its partners will discuss the phasing out of supply curbs at next month’s meeting and the WTI future is trading below USD 71 per barrel.
The dollar has returned to form, nudging higher versus the euro and yen, and most other currencies. EURUSD is pressing on 1.1700 as the London interbank gets up an running, putting Wednesday’s six-month low at 1.1675 back in the crosshairs. The Fed remains on a tightening track while the sentiment towards the Eurozone is being marred by Italy. USDJPY has recovered to the 109.50 area from yesterday’s 17-day low at 108.95.
The lift has reflected part broader dollar firmness and par broader yen weakness. Stock markets recovered some poise Asia, and U.S. equity index futures also lifted some following a shaky session on Wall Street yesterday when the Trump administration cancelled the planned summit with North Korea. Pyongyang said today that it would still be willing to meet with the U.S. There are also reports that Mexico has made an offer to the U.S. in a bid to seal the NAFTA renegotiation.
Main Macro 25 May Market Moving Events Fundamental Analysis
- German Ifo Business Climate – Expectations – expected to stabilize, but comes with a downside bias now after the weak PMI round. The forecasts had been for an unchanged headline reading of 102.1 versus 102.1 in the previous month, with expectations seen falling back slightly, but the current conditions indicator was expected to improve after the holiday related noise in previous months.
- UK Second Estimate GDP – Expectations – Unchanged at 0.1% q/q and 1.2% y/y.
- US Durable Goods – Expectations – A 4% decline is expected for April, down to -1.4% from 2.6% in March
- Plethora of Speeches – RBA Assist Gov Bullock, BOE Gov Carney, Fed Chair Powell, FOMC Member Bostic, & German Buba President Weidmann – possibly of some surprises and volatility for AUD, USD, EUR and GBP simply from the number of speeches on tap today.
Support & Resistance Levels
This article about 25 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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