Major overnight headlines:
• Nikkei slumps more than 5.0% as JPY strengthens, 10-year JGB yield lower on the day though
• BoJ says long-term JGB purchases in June to total around 7.0 trillion, but amount can be adjusted, Thomson Reuters
• RBNZ’s Wheeler says New Zealand’s exchange rate is “significantly overvalued”, Bloomberg
• RBNZ’s Wheeler says RBNZ is prepared to “scale up” its foreign exchange activities, Thomson Reuters
• Australian building approvals rise 27.3% y/y in April, more than expected and versus a rise of 4.4% previously
• Australian Q1 capital expenditure down 4.7% q/q versus a rise of 0.8% expected
• Australian businesses predict 3.4% increase in investment in 2013-2014, higher than original estimate, Bloomberg
• Swiss GDP up 0.60% q/q in Q1 versus a rise of 0.2% expected, household consumption up 0.6%, exports -1.2%
• UK Nationwide House Price Index rises 1.1% y/y in May, biggest rise in 18 months
• Hollande “lashes out against” EU Commission proposals for France including pension reforms, Euro Intelligence
• Dutch central bank says “important” mortgage debt to be reduced, Bloomberg
• Italy sells 5.75bln (top of range) in 2018 and 2023 bonds at bid-to-cover of 1.40 times and 1.38 times respectively
Click here to read the full report: FX Daily
BMO