Forex Analysis

Weekly Focus: Fed exit moving closer

Market movers ahead • We expect the ISM manufacturing index and the employment report to show improvement in the US economy and the US labour market.

June central bank meetings: BoE in focus

Both the Bank of England and the European Central Bank are on the list of central banks meeting next week, which also includes Australia,

Mid-Day FX Market Analysis

USD: The Dollar has put together a moderate recovery rally this morning, but still has some work to do after a sizable downside breakout took prices well below their mid-to-late May trading range.

Central European Daily

While Polish zloty weakens, Czech koruna rebounds. Is carry trade behind that? The Polish zloty hit its 11-month low yesterday as the EUR/PLN approached the 4.30 level.

Currencies: Dollar correction continues The dollar stayed under pressure on Wednesday. The move was in the first place technical in nature. Several USD cross rates were not able to break beyond important levels,

The Global Macro Pulse

Overnight Price Action Asian stocks put on a mixed showing, with the Nikkei index up 1.6% on strong industrial production data but the SHCOMP and HSI slipping 0.1%.

Eurozone CPI expected to bounce, US personal income and spending…

First up in the morning, attention will turn to the Eurozone CPI print. The headline reading is expected to rebound from its April dip.

ECB Preview: The end of monetary easing

• The likelihood of a deposit rate cut at the upcoming ECB meeting is close to nil and the chance that the ECB will move to negative rates at a later stage is very small.

FX Daily

Market movers today • We expect only a modest uptick in euro area inflation to 1.4% in May and unchanged 1% core inflation.

USD/JPY Analysis

The pair closed in NY Y100.73 after rate had corrected back from recovery highs of Y101.80, the move up seen prompted by a comment from the

GBP/USD Analysis

The pair closed in NY at $1.5233 after rate had trailed euro-dollar’s stronger recovery, moving up from around $1.5111 to a high of $1.5238 before easing slightly into the close.

EUR/USD Analysis

The pair closed in NY Thursday at $1.3046 after rate had again extended its recovery, this time to $1.3062 after breaking, then holding above its key 40-dma and