Entering into US session, New Zealand Dollar and Australian Dollar soften mildly ask risk appetite recedes today. ECB Vice President Luis de Guindos affirmed the stance that the central bank is ready to “act” should inflation expectation expectations “de-anchor”. Messages from China affirmed that there will be a Trump-Xi meeting at G20 next week. But traders generally turn cautious ahead of FOMC rate decision today
Staying in the currency markets, Canadian Dollar is the third weakest ahead of Canada CPI and oil inventory. Dollar is also softer ahead of Fed. The key will be Fed’s two Ps, “patience” and “projections”. We’d see if Fed is ready for an “insurance” rate cut in July. For now, Swiss Franc is the strongest one for today, followed by Sterling, and then Euro.
In Europe, currently:
- FTSE is down -0.31%.
- DAX is up 0.10%.
- CAC is up 0.10%.
- German 10-year yield is up 0.0308 at -0.287.
Earlier in Asia:
- Nikkei rose 1.72%.
- Hong Kong HSI rose 2.56%.
- China Shanghai SSE rose 0.96%.
- Singapore Strait Times rose 1.53%.
- Japan 10-year JGB yield dropped -0.0042 to -0.134.