European Open Briefing

Global Markets:

  • Asian stock markets: Nikkei up 0.10 %, Shanghai Composite gained 0.30 %, Hang Seng and ASX 200 both rose 0.35 %
  • Commodities: Gold at $1246 (-0.30 %), Silver at $17.55 (-0.20 %), WTI Oil at $48.40 (+0.75 %), Brent Oil at $51.00 (+0.70 %)
  • Rates: US 10 year yield at 2.41, UK 10 year yield at 1.18, German 10 year yield at 0.41

News & Data:

  • RBNZ Interest Rate Remains Unchanged At 1.75%, As Expected
  • PBoC Fixes USDCNY Reference Rate At 6.8856 (Prev 6.8889)
  • Asia stocks rise, but gains for dollar, oil capped by jitters – RTRS
  • Slide in U.S. infrastructure stocks sign of ‘Trump trade’ weakness – RTRS
  • Dollar limps up from four-month low vs. yen, Trump’s healthcare bill in focus – RTRS

Markets Update:

Stock markets have calmed down following the sharp sell-off on Tuesday. Most of the major Asian indices are up on the day, but investors remain cautious overall.

Meanwhile, the US Dollar remains under pressure. EUR/USD failed to sustain momentum above 1.08, but is still bid. Resistance is seen in the area between 1.0820 and 1.0830. Should the pair break above it, it will likely extend the rally further beyond 1.09.

GBP/USD declined yesterday on the news that there has been a terrorist attack in London. However, it recovered later and rose back to 1.25. Overall, the short-term outlook is positive from a technical perspective. After 1.25, the next strong resistance level lies at 1.2580.

USD/JPY is looking a bit oversold on the hourly charts, and could see a bounce in the next few sessions. Nevertheless, the outlook remains negative and there will be good selling interest on any larger rally. Strong resistance is noted in the area between 112.00 and 112.25.

Upcoming Events:

  • 09:00 GMT – ECB Economic Bulletin
  • 09:30 GMT – UK Retail Sales
  • 12:30 GMT – US Initial Jobless Claims
  • 11:00 GMT – Fed Chair Yellen speaks
  • 14:00 GMT – US New Home Sales
  • 21:45 GMT – New Zealand Trade Balance
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