Major overnight headlines:
• Chinese May HSBC manufacturing PMI at 49.6 versus an expected 50.4, a 7-month low
• Nikkei-225 falls more than 7.0% on the day overnight
• Japan’s Suga says BoJ will respond “as needed” to long-term bond rates
• BoJ offers to buy government debt from the market after JGBs gap lower at the open
• Riksbank’s Jansson says SEK “not a dramatic issue” at present, Reuters reports
• UK GDP unrevised at 0.3% q/q in Q1, private consumption growth at 0.1% versus 0.3% expected
• UK Index of Services up 0.2% m/m in March versus a rise of 0.1% expected
• German manufacturing PMI at 49.0 in May versus 48.5 expected
• French manufacturing PMI at 45.5 in May versus 44.7 expected
• Thailand’s foreign reserves fall to $174.4 billion in May 17th week, lowest now since mid-July 2012
• Spain sells 2016 paper at bid-to-cover of 2.2 versus 2.3 last, 2018 at 1.9 versus 2.2 last, 2026 at 1.5 versus 1.6 last
• ECB’s Noyer says “fragmentation risk” remains a problem for the euro area, Bloomberg reports
Click here to read the full report: FX Daily
BMO