Entering into US session, Dollar remains the strongest one for today, in reaction to US-China decision to put trade war escalation on hold. In addition Fed Vice Chair Richard Clarida sounded upbeat as he said baseline economic outlook remains positive. Markets will now enter into a crucial week to gauge the chance of a July Fed cut. Important economic will be released starting from ISM Manufacturing today.
Staying in the currency markets, Canadian Dollar is the second strongest one as oil prices also jump on the trade news. WTI oil is now trading around 60 handle. Euro is the third weakest after mixed data. On the positive side, Eurozone unemployment rate dropped to record low of 7.5% in May. For now, Yen and Swiss Franc are among the weakest on risk appetite. Australian Dollar ignore stocks’ rally and is the second weakest, awaiting RBA rate cut tomorrow.
In Europe, currently:
- FTSE is up 1.33%.
- DAX is up 1.31%.
- CAC is up 0.86%.
- German 10-year yield is down -0.0007 at -0.325.
Earlier in Asia:
- Nikkei rose 2.13%.
- China Shanghai SSE rose 2.22%.
- Hong Kong HSI was on holiday.
- Singapore Strait Times rose 1.52%.
- Japan 10-year JGB yield rose 0.153 to -0.146.
