Data dump who?
A parade of Japan’s economic data was not enough to move the popular majors and crosses today.
That doesn’t mean we won’t see crazy price action from the London playas!
First, here are the biggest headlines that you may have missed in the last few hours.
Fresh Market Headlines & Economic Data:
- Hong Kong government warns removing U.S. special status is ‘double-edged sword’
- U.S. crude, diesel stocks pile up on lackluster fuel demand: EIA
- Australia’s private sector steady in April
- New Zealand consumer confidence up 12.5pts to 97.3 in May
- Tokyo May core CPI rises 0.2% yr/yr
- Japan’s housing starts dip by 12.9% in April
- Japan’s industrial output hits fresh 7-year low in April
- Japan’s factory, retail sectors slump as pandemic hits auto sector
- Japan’s consumer mood higher in May but still ‘extremely severe’
- Japan’s jobless rate rises to 2.6% in April
- Dollar bides time, yuan falls before Trump takes stage on China
Upcoming Potential Catalysts on the Economic Calendar:
- Germany’s retail sales at 6:00 am GMT
- France’s second GDP reading at 6:45 am GMT
- Swiss KOF economic barometer at 7:00 am GMT
- Euro Zone CPI at 9:00 am GMT
- Canada’s GDP at 12:30 pm GMT
What to Watch: EUR/GBP
Optimism over the EU’s €750 billion ($826 billion) coronavirus recovery program (PEPP) helped push the euro higher after it had broken below an uptrend against the pound. It also didn’t hurt that hard Brexit worries are once again getting headlines.EUR/GBP is now on a range with .8900 as support and the .9000 MaPs serving as resistance.
If today’s set of lower-tier reports print weaker than expected, then we could see EUR/GBP hit the mid-range levels near the SMAs. EUR/GBP’s daily ATR certainly shows this is possible.
But remember that ranges reflect indecision and EUR/GBP could still break above .9000.
If euro bulls get enough momentum to break .9000, then we could see EUR/GBP trade at .9050 before seeing some resistance.