Forex - Asia Highlights - Wednesday, 12 June 2019


 04:34 (GMT) 12 Jun

  [Forex Highlights]

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Asia Highlights - Wednesday, 12 June 2019 (0101-LRRR-C01)

US Highlights:

- US May PPI 0.1% Ex Food/Energy 0.2%, in line with expectations

- NFIB small business optimism index rises in May to 105-the highest since October

- IBD/TIPP economic optimism index falls to 53.2, the lowest since February.

- Trump - euro & other currencies are devalued against the dollar. US interest rates ways too high.

- Labour to submit motion Wednesday to try and block future PM proroguing Parliament to force no-deal

Currencies:
GBP made gains in the European morning on stronger-than-expected UK labour market data, though the details of the data suggest the underlying story is still weakening. Average earnings growth excluding bonuses picked up, but fell slightly including bonuses, though it was still stronger than expected. Employment rose modestly q/q, but those in employment fell, with the rise due to an increase in those reporting as self-employed. EUR/GBP briefly dipped back below 0.89 after making a new 5-month high early.
Norwegian CPI was much weaker than expected in May at 2.3% y/y, but the decline was due to weakness in food and transport and may have been related to the timing of Easter. EUR/NOK initially pushed above 9.80 but fell back to opening levels.
The USD saw broadly steady gains against the JPY and fell back against the more risk-positive currencies. USD/JPY later slips back as US equities give up early gains.

Asia FX and News:
-Salvini Pledges Flat Tax in Budget, Urges EU to Promote Growth ~ BBG
-Boris Johnson Pitches for U.K. Leadership Vowing Oct. 31 Brexit ~ BBG
-Australia June Consumer Confidence Falls 0.6% M/m
-China May Consumer Prices +2.7% Y/y; Producer Prices +0.6% Y/Y, Both Matching Estimates
-There are only very minor changes in FX as news flow and data were very light. AUD/USD briefly took a step lower on lower consumer confidence results despite RBA's rate cut in June. The recovery in AUD was subsequently helped by a stronger Yuan ahead of the fix, but move quickly reversed together with the Yuan. Softer equities, particularly in China, weighed on the AUD and NZD slightly. JPY modestly higher from weaker risk appetite, USD/JPY slips to NY lows circa 108.45. A dip was seen on the Cable as Boris Johnson promised that the UK will no longer be part of the EU after Oct 31, the dip was reversed in a hurry though.

Data:

JP: Core Machine Orders (Apr) 5.2% m/m (Mkt: -0.8 Prev: 3.8)

JP: Core Machine Orders (Apr) 2.5% y/y (Mkt: -5.3 Prev: -0.7)

JP: PPI (May) -0.1% m/m (Mkt: 0 Prev: 0.4R)

JP: PPI (May) 0.7% y/y (Mkt: 0.7 Prev: 1.3R)

Still to Be Released -

Data:

07:00 GMT - ES: CPI (May F) % m/m (Mkt: 0.2 Prev: 0.2)

07:00 GMT - ES: CPI (May F) % y/y (Mkt: 0.8 Prev: 0.8)

07:00 GMT - ES: Flash HICP (May F) % m/m (Mkt: 0.2 Prev: 0.2)

07:00 GMT - ES: Flash HICP (May F) % y/y (Mkt: 0.9 Prev: 0.9)

12:30 GMT - US: CPI (May) 4cast: 0.1% m/m (Mkt: 0.1 Prev: 0.3)

12:30 GMT - US: CPI (ex Food & Energy) (May) 4cast: 0.2% m/m (Mkt: 0.2 Prev: 0.1)

18:00 GMT - US: Monthly Budget Statement (May) USD bn (Mkt: -202 Prev: 160.3)

23:01 GMT - UK: RICS Housing Survey (May) % (Mkt: -21 Prev: -23)

Events & Auctions:

23:25 GMT - AU: RBA's Kent speaks in Melbourne

08:15 GMT - EU: ECB's Draghi speaks in Frankfurt

09:00 GMT - AU: RBA's Ellis Speaks in Melbourne

09:00 GMT - EU: ECB's Guindos speaks in Frankfurt

09:00 GMT - IT: 364-Day Bills Auction (EUR 6.5bn)

09:30 GMT - DE: Tap of Bund 0.25 2/15/29 (EUR 3bn)

09:30 GMT - UK: 2048 Linkers Auction 0.125% (GBP 0.7bn)

09:30 GMT - PT: Tap of OT 1.95 6/15/29 (EUR 0.8bn)

09:30 GMT - PT: Tap of OT 2.25 4/18/34 (EUR 0.45bn)

11:00 GMT - IT: 186-Day Bills Auction

17:00 GMT - US: 10yr Notes Reopening (USD 24bn)


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