Forex Calendar
The Global Macro Pulse
The dollar had a brief, small rally in early Asian trading, but just as quickly gave up gains, leaving suspected PBoC intervention selling USDCNY above 6.26 onshore to be the main event for the day, in our view.
UBS Morning Adviser
Inflation will drive the dollar higher – but only if yields follow through In the latest edition of UBS Macro Strategy Weekly ‘Key Issue’,
FX Daily
The most important release is euro area money supply and credit growth for April.At the ECB-forum in Sintra ECB-president Draghi in his speech Monday appearedconcerned about banks’ capacity to increase loans.
FI Eye-Opener: Equity markets continue to party
Core bond yields initially climbed higher yesterday, but more dovish ECB comments and violence in Ukraine coupled with rumours that Russian forces would have crossed the border spurred demand for bonds again.
Daily FX Update
Markets are quiet leading into a slew of U.S. data and favouring risk taking. Equities are strong the US 10 year is at 2.53% and the USD is mixed, but changes since yesterday’s close are minor.
Central European Daily
Another 10 bps rate cut in Hungary today, focus on the NBH statement The National Bank of Hungary keeps rate setting meeting today at 14.00 CET.
The Global Macro Pulse
In FX, the dollar has weakened against the EUR and AUD, but is flat against the yen. AUDUSD corrected up to 0.9259 and EURUSD rose to 1.3657 despite dovish sounding comments from ECB President Draghi overnight.
UBS Morning Adviser
CNH implied forward yield has been rising in spite of ample onshore liquidity In recent weeks the USDCNH forward curve has been climbing steadily;
FX Daily
In the data calendar the focus will mainly be on US data. Durable goods orders forApril should give us an idea of the strength of the rebound in business capitalexpenditure in Q2.
FI Eye-Opener: Post-election rally in the periphery
Longer German bond yields edged slightly higher yesterday and the curve steepened, but trading volumes were very subdued due to the US and UK holidays.
Daily FX Update
Today is a US and UK holiday leaving liquidity light and opening the potential of some awkward chart patters; particularly once Europe closes, leaving Canada as the sole open market.
Central European Daily
MNB is about to cut rates by 10 basis points Poroshenko’s victory could calm the situation in Ukraine The Central European currencies strengthened on Friday but