Forex news from the European trading session – 25 June 2018 Headlines: Markets: – JPY leads, CAD lags on the day – European equities lower – Gold down 0.19% to $1,267.02
European Commission vice president Jyrki Katainen speaks in Beijing It’s not just metal tariffs targeted at the EU directly that they have to worry about really. The trade spat between the US and China has already claimed an unintended victim in Daimler as we saw last week.
USD/TRY back to flat on the day now Reality is starting to hit the lira as the session strolls along. Erdogan’s presidency means there is the likelihood of unconventional monetary policy and the possibility of a non-independent central bank, and that is capping any advance in the lira following the elections.
The EU Summit is key to determine Merkel’s fate Yesterday’s meeting was just the beginning but the EU Summit to come later this week on 28-29 June will be the key timeline for Merkel as the asylum policy continues to be the bane of her coalition government over the past month or so.
AUD/USD nears 74-cents The Australian dollar is feeling the weight of the poor tone in global equity markets. The US plan to add to Chinese tariffs is hitting stock markets with the S&P 500 down 1.25%. Additional selling hit after the US open and that’s pulled down AUD/USD.
Manufacturing survey from the Dallas Fed Regional manufacturing numbers have been soft so far this month but this is a nice turnaround, even if it probably only represents the booming business in oil.
May US new home sales Housing has been in a bit of a rut this year but this is a nice bounce, even if those regional numbers are all over the place.
S&P 500 down 19 points at the open Is it a dip? Or a buying opportunity? The S&P 500 fell below last week’s low with a 19 point drop to 2735 at the open. Note that it’s the final week of the month and the quarter today so that could make for choppy trading.
Sakurai in Rome Bank of Japan board member Makoto Sakurai is in Rome and used the occasion to remind everyone that miniscule unemployment doesn’t necessarily mean wage growth. Economists dismiss Japan out-of-hand because it doesn’t fit the models but the models aren’t working particularly well anywhere.
Not bad You never hear about Austria but it sounds like the economy is doing pretty good there.