Forex Today: GBP weakest in Asia, Eyes on Eurozone CPI, US data
|Forex today was mainly dominated by a broad based GBP weakness on latest poll, which revealed that UK Conservatives are projected to fall 16 seats short of overall majority in the upcoming June 8 election. The Antipodeans also remained under pressure, despite upbeat macro news from China, with the Chinese factories maintaining a steady growth last month. Meanwhile, RBNZ financial stability report, Wheeler’s comments and Australia’s private sector credit data was also overlooked by markets.
Looking ahead, we have an eventful EUR calendar, with German retail sales data out of the way, focus now remains on the Eurozone flash CPI estimate and unemployment rate. Meanwhile, FOMC member Kaplan’s speech, Canadian GDP and US pending home sales will be reported in the NA session, alongside the second-liner US Chicago PMI and Fed’s Beige book release.
Main topics in Asia
NZ: Financial Stability Review highlighted reduced risks in the financial system - TDS
The analysis team at TDS explains that the NZ’s semi-annual Financial Stability Review highlighted reduced risks in the financial system, although global uncertainty remains.
RBNZ's Wheeler: We are very pleased house price inflation has come off in recent months
RBNZ's Governor Graeme Wheeler is on the wires, via Reuters, stating that he's very pleased house price inflation has come off in recent months.
Japan's industrial production hits highest level since 2008
Japan’s industrial output rebounded in April, hitting the highest level since 2008, as overseas demand continued to support the nation’s economic recovery, Bloomberg reports.
Goldman Sachs downgrades Oil-price forecast
Goldman Sachs analysts, in their latest research note, downgraded the estimations for oil prices for this year, citing a potential rise in shale gas production, new projects and OPEC restrictions, CNBC reports.
Key Focus ahead
Eurozone: Expect a further decrease in unemployment rate in April to 9.4% - Danske Bank
According to the research team at Danske Bank, the euro-area unemployment figures are likely to show that the labour market continued to strengthen in April.
Euro area HICP: Headline rate to fall back to 1.6% y/y from April’s 1.9% - RBC CM
In view of analysts at RBC Capital Markets, the combined effect of Easter related price rises dropping out of the index and falling petrol pump and home heating oil prices should combine to push euro area inflation lower in May.
Australian CAPEX survey to provide some further guidance on growth prospects - Westpac
Andrew Hanlan, Senior Economist at Westpac, explains that the Australia’s ABS survey of private business investment plans, the CAPEX survey, will provide some further guidance on growth prospects.
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