Major overnight headlines:
• Italy sold 2.25% 2016 bonds at a yield of 1.92% versus roughly 2.30% at the last auction on April 11th
• ECB’s Visco says ECB may cut the deposit rate into negative territory if economy needs further help, CNBC reports
• Fed officials’ steps to unwind QE could initiate mid-year or later, WSJ says
• Japan’s Aso says no G-7 complaint over BoJ policy, weaker JPY, Reuters says
• Spanish house sales fall nearly 13% y/y in March versus a rise of 17.3% in February, largest fall since Q1 2012
• Germany’s Schaeuble says EU banking union is “urgent necessity”, FT reports
• Japanese M3 money supply grows 2.6% y/y in April, slightly higher than the 2.5% rise expected
• UK’s Boris Johnson says country should be prepared to leave the EU, Telegraph reports
Click here to read the full report: FX Daily
BMO