Major overnight headlines:
• RBA says May rate cut was “appropriate” to encourage growth, AUD remains historically high, Thomson Reuters reports
• PBoC fixed USD/CNY at another record low of 6.1911
• Fed’s Fisher says odds favouring Fed “maintaining or reducing” purchases, Bloomberg reports
• Fed’s Evans says could “end bond buys in autumn” if jobs outlook sure, Thomson Reuters reports
• Berlin aims to circumvent a full treaty change convention by consolidating the ESM, TSCG and future banking union treaty
into a single euro zone treaty as an add-on to the Lisbon Treaty for participating EMU members, Euro Intelligence reports
• German producer prices fall 0.2% m/m in April versus a fall of 0.1% expected
• Dutch House Price Index falls 7.6% y/y in April versus a fall of 7.0% previously
• Sweden’s unemployment rate at 8.4% in April (sa) versus a reading of 8.3% expected
• UK April CPI rise 0.2% m/m versus a gain of 0.4% expected, y/y falls to 2.4% from 2.8%
Click here to read the full report: FX Daily
BMO