Forex - European Highlights ~ Wednesday 16th May


 10:03 (GMT) 16 May

  [Forex Highlights]

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European Highlights ~ Wednesday 16th May (0100-ZWFR-C01)

Asia FX and News -

+ 5-Star, League want ECB to forgive EUR250bn of debt -Reuters

+ Japan's Q1 GDP fell 0.6% q/q, 1st contraction in 2 years.

+ N.Korea casts doubt on Trump summit, suspends talks with South ~ Reuters

+ ECB's Constancio calls for accelerated banking union - FT

+ BoE's Broadbent: will not 'spoon feed' markets on rate hikes ~ Telegraph.

+ AUD and NZD early losers in Asia, the latter managing to recover from a fresh YTD low at .6850, while the AUD was hit by soft wage growth data before it too managed a small bounce. USD/JPY could not build on Tue's break higher as doubts cast over the Kim-Trump summit and US yields eased back a shade, EUR/USD trod a narrow range above the fresh YTD low.

Nikkei and JGBs -

+ N225 closed -0.44% at 22717.23. 10yr JGBs yield 0.059%

European FX and News -

+ After an opening bounce EUR/USD has resumed the push lower to extend the lows to 1.1797. The EUR has come under pressure generally as the session, EUR/JPY and EUR/CHF all pushing lower, while EUR/GBP is close to unchanged after an initial push higher. Continuing uncertainty over Italy and Kim-Trump, US-China uncertainties all weighing on risk appetite.

+ EUR/CHF has slipped to a 1m low close to 1.1800, that undermining the two stand-out positions according to last week's CFTC data. Despite the better bid USD v Europe tone USD/CHF is still batting with 1.00.

+ Cable is only just above the YTD low, Brexit coming to the fore again with little sign of a breakthrough on the Irish border question.

+ Commodity currencies look a shade better, AUD and NZD well above the lows with AUD/USD back to circling around .7480. USD/CAD is holding a tight range as is Crude.

+ EUR/SEK is off the recent lows despite Riksbank's Skingsley signalling likely rate hike this year. With EUR/NOK relatively steady NOK/SEK is edging higher again.

Bonds and Equities -

+ BTPs the big mover, future -1pt,10s +8.5bp above 2%, IT-DE to 140bp. Bunds gain some support, future back above 158, as the mkt takes down 10yr supply. Gilts also see small lift with 121.70 resistance. US yields trim back almost 2bp from Tues' big sell-off. Equities don't inspire, Dax up a fraction, FTSE and Eurostoxx just negative.

Data:

JP: GDP (Q1 A) -0.2% q/q (Mkt: 0.0 Prev: 0.1R)

JP: GDP (Q1 A) -0.6% q/q ann. (Mkt: -0.1 Prev: 0.6R)

AU: Westpac Consumer Confidence Index (May) 101.8 (Prev: 102.4)

AU: Wage Price Index (Q1) 0.5% q/q (Mkt: 0.6 Prev: 0.5R)

AU: Wage Price Index (Q1) 2.1% y/y (Mkt: 2.1 Prev: 2.1)

04:30 GMT - JP: Capacity Utilisation (Mar) % m/m (Prev: 3.3)

04:30 GMT - JP: Industrial Production (Mar F) % m/m (Prev: 1.2)

04:30 GMT - JP: Industrial Production (Mar F) % y/y (Prev: 2.2)

04:30 GMT - NL: Retail Trade (Mar) % y/y (Prev: 2.8)

06:00 GMT - DE: CPI (Apr F) % m/m (Mkt: 0.0 Prev: 0.0)

06:00 GMT - DE: CPI (Apr F) % y/y (Mkt: 1.6 Prev: 1.6)

06:00 GMT - DE: HICP (Apr F) % m/m (Mkt: -0.1 Prev: -0.1)

06:00 GMT - DE: HICP (Apr F) % y/y (Mkt: 1.4 Prev: 1.4)

07:00 GMT - AT: CPI (Apr) % m/m (Prev: 0.6)

07:00 GMT - AT: CPI (Apr) % y/y (Prev: 1.9)

07:30 GMT - SE: Industrial Capacity (Q1) % (Prev: 90.6)

08:00 GMT - IT: Industrial Orders (Feb) % m/m (Prev: -0.6)

08:00 GMT - IT: Industrial Orders (Feb) % y/y (Prev: 3.4)

09:00 GMT - EU: CPI (Apr) % m/m (Mkt: 0.3 Prev: 1.0)

09:00 GMT - EU: CPI (Apr) %y/y (Mkt: 1.2 Prev: 1.3)

09:00 GMT - EU: HICP - Core (Apr F) % y/y (Prev: 0.7)

09:00 GMT - IT: HICP (Apr F) % y/y (Mkt: 0.6 Prev: 0.6)

09:55 GMT - IS: 7-Day Deposit Rate (16 May) % (Prev: 4.25)

Still To Be Released:

Data:

12:30 GMT - CA: Manufacturing Sales (Mar) 4cast: 2% m/m (Mkt: 1 Prev: 1.9)

12:30 GMT - US: Building Permits (Apr) 4cast: 1370k (Mkt: 1350 Prev: 1354)

12:30 GMT - US: Housing Starts (Apr) 4cast: 1350k (Mkt: 1310 Prev: 1319)

13:00 GMT - BE: Trade Balance (Mar) EUR mn (Prev: -41.3)

13:15 GMT - US: Capacity Utilization (Apr) 4cast: 78.6% (Mkt: 78.4 Prev: 78)

13:15 GMT - US: Industrial production (Apr) 4cast: 0.9% m/m (Mkt: 0.6 Prev: 0.5)

23:50 GMT - JP: Key Machinery Orders (Mar) % m/m (Mkt: -3 Prev: 2.1)

23:50 GMT - JP: Key Machinery Orders (Mar) % y/y (Mkt: -0.3 Prev: 2.4)

Events & Auctions:

EU: ECB's Draghi, Praet and Coeure Speak at Conference to Mark ECB Vice-President Constancio's Departure in Frankfurt

UK: BoE's Haldane Speaks in London

WLD: IEA Monthly Oil Market Report

07:00 GMT - UK: BoE's Sheren Speaks in London

08:00 GMT - FI: Bank of Finland's Nykanen Speak in Helsinki

08:10 GMT - UK: BoE's John Speaks in Liverpool

09:30 GMT - DE: Tap of Bund 0.5 2/15/28 (EUR 2bn)

09:30 GMT - PT: Bills Auction

12:30 GMT - US: Fed's Bostic Speaks in Augusta, Georgia

16:15 GMT - CA: BoC's Schembri Speaks in Ottawa

22:30 GMT - US: Fed's Bullard Speaks in St. Louis, Missouri


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