- New Zealand reported smaller than expected surplus of 534M NZD
- PBOC cuts corporate yield spread
- Ukraine’s election concludes with victory for Poroshenko
- German GfK consumer climate index to hold steady at 8.5?
- U.K. and U.S. banks on holiday
Risk appetite revisited financial markets in today’s Asian trading session, as the presidential election in Ukraine showed a decisive victory for Poroshenko and sentiment was supported by the credit upgrades in the euro zone.
However, most major currencies failed to take advantage of this improvement in sentiment. EUR/USD continued to edge lower while GBP/USD showed more signs of a retreat. Liquidity is expected to be thin in the upcoming trading sessions, with U.K. and U.S. banks on holiday.
News of the PBOC cutting the corporate yield spread also prevented the Aussie and Kiwi from cashing in on risk appetite. Apparently, the Chinese central bank decided to allow borrowing costs to fall in an effort to spur bond issuance. New Zealand’s weaker than expected trade surplus of 534 million NZD, which reflected a 6.5% monthly decline in dairy exports, also kept NZD/USD stuck around the .8550 levels.
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
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