Price action was a mixed bag of nuts during the Asian session, as traders took some profits off from shorting higher-yielding bets from earlier in the week.
However, risk-taking was limited by Trump officially cancelling his June meeting with North Korean leader Kim Kong-Un.
- Tokyo’s core CPI (y/y) slips from 0.6% to 0.5% vs. 0.5% expected in May
- North Korea willing to meet with the U.S. “any time”
- U.S. Commerce Secretary Wilbur Ross to visit China in early June
There were no major economic releases during the Asian session, so market players once again focused on geopolitical events.
This time around the spotlight is on U.S. President Trump who officially canceled his Singapore meeting with North Korea’s Kim Jong-Un supposedly scheduled in June.
The announcement could have dragged higher-yielding bets lower, but it seems like market players were kinda used to Trump’s bold moves.
In addition to that, some traders were shorted out from pricing in the Commerce Department investigating the possibility of additional tariffs on auto and auto parts imports. In fact, the Asian bourses were mixed from all the profit-taking before the week ended.
- Nikkei is up by 0.08% to 22,454.9
- A SX 200 is up by 0.30% to 6,031.8
- Hang Seng is down by 0.26% to 20,681.1
- Shanghai index is down by 0.07% to 3,152.346
Commodity prices weren’t any clearer with their direction.
- Gold is down by 0.18% to $1,302.18
- Brent crude oil is down by 0.23% to $78.63
- U.S. WTI is up by 0.03% to $70.63
Major Market Mover(s):
The low-yielding yen took the biggest hits as market players took profits from their shorts from earlier in the week.
USD/JPY is up by 31 pips (+0.28%) to 109.55
EUR/JPY is up by 22 pips (+0.17%) to 128.26
GBP/JPY is up by 32 pips (+0.22%) to 146.46
CHF/JPY is up by 23 pips (+0.21%) to 110.39
Watch Out For:
- 8:00 am GMT: Germany’s IfO business climate (102.0 expected, 102.1 previous)
- 8:30 am GMT: U.K.’s second GDP estimate to remain at 0.1%?
- 8:30 am GMT: U.K.’s preliminary business lending (q/q) (0.2% expected, 0.3% previous)
- 8:30 am GMT: U.K.’s High Street lending (37.5K expected, 37.6K previous)
- 8:30 am GMT: U.K.’s services index (0.3% expected, 0.4% previous)