The G10 rundown
USD – the greenback near the top of the heap, but remains bogged down in a range in most pairs, likely held back by the USDCNY rate cap assumption.
EUR – mounting tactical risks for the euro, which may have a hard time piecing together any significant rally ahead of the EU parliamentary elections. GDP data up this morning.
JPY – maintaining a reasonable bid in the crosses even as risk appetite has improved a bit over the last couple of sessions. Strong safe haven bond markets likely to keep supported.
GBP – sterling suffering risk of a tactical breakdown to probe fresh supports as Brexit is going nowhere fast.
CHF – the now you don’t see it, no you do safe haven status of CHF suddenly in evidence and possibly linked to EU existential risks, EU peripheral spreads, Brexit, more than general risk off on the US-China trade tension theme. The latest EURCHF dip opens up for the range to the big 1.1200 support zone.
AUD – slow motion breakdown in AUD with the key test tonight over the latest April jobs report Down Under. How aggressively can a move extend, however, with the CNY floor in place?
CAD – the latest Canada CPI up today – likely more sensitive to a downside miss as we await a pulse in USDCAD.
NZD – watching for AUDNZD support at some point to prove the point that the chart has structurally turned. AU yield drop will have a very difficult time outpacing NZ yields.
SEK – EURSEK consolidating after the brutal run higher, but the trend remains higher as long as we trade above 10.60-65 and EUR weakness due to weaker growth fears can feed an even weaker SEK.
NOK – NOKSEK is interesting around the 10.00 level as we discussed in a post yesterday
. Upcoming Economic Calendar Highlights (all times GMT)
0900 – Eurozone Q1 GDP
0900 – Eurozone Employment
1230 – Canada Apr. CPI
1230 – US May Empire Manufacturing
1230 – US Apr. Retail Sales
1315 – US Apr. Industrial Production
1400 – US May NAHB Housing Market Index
1415 – ECB’s Coeure to speak
1630 – ECB’s Praet to speak
0130 – Australia Apr. Employment Change / Unemployment Rate