Market Trades In Ranges; Factory Orders Next
UK trading quiet; German continues to oppose euro bonds; Chinese non manufacturing PMI declines; Eurozone sentix confidence falls and PPI eases. Market turns to factory orders. Details of today's Intermarket Insights (charts & trades) are in the final paragraph of this IMT.
The London session has been quiet as UK banks are closed today and tomorrow in observance of the Spring Bank holiday and Queen's diamond jubilee. The USD trades slightly weaker against most majors and major European equities are gaining about 0.75%.
The battle for euro bonds may be harder than the French president Hollande hoped as evidenced by chancellor Merkel's yesterday comments that under no circumstances she would agree to the idea of euro bonds. Instead of equal interest rates, the uncompetitiveness of the European economy has to be addressed, she added.
Over the weekend we learned that Chinese non manufacturing PMI declined to 55.2 in May from previous 56.1 which is the slowest pace of expansion in over a year. The Aussie, which is the currency that usually responds the most to Chinese data trades higher as traders react to Friday's NFP result and prepare for the upcoming cash rate decision.
Eurozone Sentix investor confidence declined further to -28.9 in June from previous -24.5 and reached nearly three year lows. Nevertheless, this was still better than anticipated -29.1. Eurozone PPI remained unchanged in April m/m and declined to 2.6% from 3.5% y/y.
The US calendar is limited today to factory orders at 10:00 am ET that are expected to rise 0.3% in April after dropping 1.9% in March.
Today's Intermarket Insight titled "Euro Rebound or Consolidation?" highlights the key macro surveys helping to deteremine NFP lead eleme several US surveys. We issue the latest trading ideas in EURUSD, USDCAD, GBPUSD. AUDUSD and gold. For direct access to today's Intermarket Insights, click here: http://ashraflaidi.com/products/sub01/access/?a=643 ; Non Subscribers can join here: http://ashraflaidi.com/products/sub01/
Stocks Jump, Yields Soar on Jobs, ECB, Corona Narrative
by Ashraf Laidi | Jun 5, 2020 18:06
فرص في النفط والعملات والمؤشرات
by Ashraf Laidi | Jun 3, 2020 14:02
As if There was no Virus
by Adam Button | Jun 2, 2020 22:53
The Protest Playbook
by Adam Button | Jun 1, 2020 12:46
Why the Euro Broke Higher
by Adam Button | May 28, 2020 22:27