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Another day, another chance to price in global trade concerns!

Risk-taking remained shaky during the Asian session though equities didn’t quite fall as sharply as their U.S. counterparts did.

  • BOJ’s CPI (y/y) retails 0.5% growth vs. 0.6% expected in May
  • Japan’s services producer price index (y/y) up by 1.0% as expected in May
  • Chinese yuan drops to its lowest since December 2017

Major Events/Reports:

Markets mixed on light trading day

With no fresh catalysts to price in, Asian session trading was a mixed bag of beans.

The Asian bourses started a bit stronger following White House adviser Navarro’s interview, but soon gave up most of their gains near the end of the trading session.

  • Nikkei is down by 0.07% to 22,321.9
  • A SX 200 is up by 0.71% to 6,199.2
  • Hang Seng is down by 0.22% to 28,898.6
  • Shanghai index is down by 0.82% to 2,835.884

Commodity prices fared a bit better, but that might be from a bit of profit-taking after the previous days’ strong price action.

  • Gold is down by 0.11% to $1,263.96
  • Brent crude oil is up by 0.11% to $74.85
  • U.S. WTI is up by 0.21% to $68.26

Major Market Mover(s):

JPY

The low-yielding yen gained for another day today thanks to continued global trade war concerns.

CAD/JPY is down by 19 pips (-0.23%) to 82.34
CHF/JPY is down by 22 pips (-0.20%) to 110.96
EUR/JPY is down by 25 pips (-0.20%) to 128.21
GBP/JPY is down by 30 pips (-0.20%) to 145.39
USD/JPY is down by 28 pips (-0.26%) to 109.46

AUD and NZD

High-yielders like the Aussie and Kiwi were the easiest targets for the overall risk aversion. Interestingly, they weakened the most against safe havens like the franc and yen, as well as the European currencies like the euro and pound.

AUD/JPY is down by 25 pips (-0.31%) to 81.11
EUR/AUD is up by 22 pips (+0.14%) to 1.5806
GBP/AUD is 18 pips (+0.10%) to 1.7924

NZD/JPY is down by 25 pips (-0.33%) to 75.42
EUR/NZD is up by 29 pips (+0.17%) to 1.6997
GBP/NZD is up by 23 pips (+0.12%) to 1.9275

Watch Out For:

  • 8:30 am GMT: U.K.’s High Street lending
  • 9:00 am GMT: MPC member Jonathan Haskel to give a testimony in London
  • 9:30 am GMT: MPC member Ian McCafferty to give a speech in London
  • 10:00 am GMT: U.K.’s CBI realized sales (10 expected, 11 previous)