Commodity currencies pull further ahead The aussie is now almost up close to 1% against the dollar on the day, with the greenback losing ground as we get the European session going. EUR/USD is back up to test the 1.1700 handle, while AUD/USD and NZD/USD are up to session highs of 0.7635 and 0.7018 respectively.
According to Bloomberg Expect this to be a bunch of hooblah in which the UK government throws a handful of things at the EU and hoping at least one of it sticks. My guess is that none would.
A bright start for equities in Europe A positive start to the week as investors are brushing aside any hints of the trade rhetoric. These are decent gains to kick start the day so let’s see if the positive vibes will spill over to US trading later.
Forex news from the European trading session – 4 June 2018 Headlines: Markets: – AUD leads, USD lags on the day – European equities higher on the day, IBEX leads gains
According to an Elysee palace source The G7 summit is scheduled to take place next week on 8-9 June in Quebec, Canada. Meanwhile, French officials are cited as saying that the work agenda of the summit is complicated by the US’ stance on trade, climate, foreign policy.
German chancellor Angela Merkel and ECB president Mario Draghi had private talks in Berlin today A German government spokesman said the meeting is not public and that this was part of an ‘exchange of views’ between Draghi as well as other heads of European institutions. The spokesman declined to comment on anything else pertaining to…
Latest data released by the Ministry of Employment – 4 June 2018 The jobless figures fall 2.5% relative to April. A minor data point, not going to do much to the euro.
Money markets now fully price in a 10 bps rate hike by the ECB in Q3 2019 The probability of a rate hike in June 2019 has come back up to ~50% after falling close to 30% on when the situation in Italy reached its peak – where we saw Italy-Germany 10-year yields spread surpass
2-year yields continue to fall on the day Italy’s bond market is still picking up the pieces after the dramatic last two weeks of May, and that recovery is still ongoing as we head into trading this week. 2-year yields are now down to under 0.70% to a low of 0.68% today, after going back…
The bond market is responding in due kind after the positive data Positive and (which will feed into this week’s GDP reading) is helping to provide a strong tailwind to the aussie so far today, as AUD/USD trades near the highs for the day currently.