Another great start for the British currency this Monday, replicating Friday’s outperformance in Asia, as risk-off returned to the markets amid oil-price recovery and renewed hopes of a deal to be reached between the UK PM May and DUP, when the DUP leader Foster meets Theresa May later in the European morning.
The Antipodeans too remained better bid amid broad based US dollar softness, although gains were limited by renewed demand for the US yields, which dampened the demand for the Emerging Market currencies as alternative higher-yielding assets.
Looking ahead, we have plenty of risk events on the cards this week, with a mix of central banking speech from across the globe and key macro news in terms of the GDP figures from the US and UK. The immediate focus, however, now remains on the German IFO surveys, US durable goods data and ECB President Draghi’s speech slated for release in the day ahead.
Main topics in Asia
The BoJ has just released the Summary of Opinions' for the June 15th and 16th meeting. Within them, the BoJ states that the Japan's economy has been turning toward a moderate expansion.
Brexit Secretary David Davis, while talking to BBC’s Andrew Marr on Sunday said, “I would be prepared "to walk away" if the UK was given a "punishment deal”. We have to plan for that."
Italy to bail out two more banks after ECB warning
Italy’s government will be bailing out Banca Popolare di Vicenza and Veneto Banca at a cost of EUR 5.2 billion.
Goldman Sachs assesses a 1/4 chance of US recession over the next two years
Goldman Sachs’ economists out with a latest note on Monday, assessing the risk of a recession for the US.
Key Focus ahead
Germany: IFO expectations to decline to 106.1 in June – Danske Bank
In the euro area, the German Ifo expectation is due for release today and analysts at Danske Bank expect this figure to decline to 106.1 in June.
DUP leader Foster to meet with UK PM May Monday morning
Sky News correspondent, as cited by Reuters, noted that the Democratic Unionist Party’s (DUP) leader Arlene Foster is arriving in London this Monday morning to meet the UK PM May.
Eurozone: German IFO and ECB conference in focus - TDS
Analysts at TDS point out that German IFO data and the start of ECB’s Sintra conference will be the most watched event for today’s economic calendar as far as Eurozone is concerned.
The week ahead: United States - Nomura
Analysts at Nomura explained that for the week ahead in the US, the relevant elements of the May PPI and CPI inflation reports point to subdued core PCE inflation in May.
The week ahead: Europe - Nomura
"German Ifo (Monday): We expect the German Ifo business climate index to increase to 115.2 in June from 114.6 in May.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds gains above 1.0700, as key US data loom
EUR/USD holds gains above 1.0700 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.