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Slow start to May’s European FX trading due to bank holidays, but we did get some currency price action with the Aussie and Kiwi extending its session gains!

  • French & German Banks closed in observance of Labour Day
  • U.K. Banks closed in observance of May Day
  • Italian Banks closed in observance of International Workers’ Day
  • Swiss Retail Sales y/y in real terms: 2.1% vs. 0.7% previous

Major Events/Reports:

Swiss Retail Sales was our lone European economic data release of the morning, and according to the Federal Statistical Office, we saw a 2.1% rise in March after an adjustment for sales days and holidays. This is better than the 0.5% y/y rise expected, and we also saw an upward revision of the previous month’s read to 0.7%. All signs are pointed to positive sentiment from consumers, especially with both the food and non-food components showing solid gains (+0.8% & +4.1% in real terms respectively). 

Major Market Mover(s):

CHF – Thanks to the positive Swiss retail sales data mentioned above, the franc is was able to attract buyers on the session, beating out most of the majors with exception to the Kiwi and the Aussie:

USD/CHF was down by 28 pips (-0.29%) to 0.9930, GBP/CHF was down by 22 pips (-0.17%) to 1.2837, EUR/CHF was down by 7 pips (-0.07%) to 1.0841

NZD – The Kiwi scored wins across the board, besting many of its major peers in the morning London session. There weren’t any apparent catalysts and buying seemed to intensify around 10:30 am GMT, but now taking a breather and pulling back in U.S. trade:

NZD/USD was up by 33 pips (+0.49%) to 0.6892, NZD/CAD was up by 45 pips (+0.49%) to 0.9409, NZD/JPY was up by 43 pips (+0.57%) to 76.91

AUD – The Aussie also caught a bid during the London session, and much like the Kiwi, there doesn’t seem to be a direct catalyst  for the bullish move. Both the Kiwi and Aussie run this morning is likely tied with to bullish sentiment after the U.S. averts a federal government shut down this weekend, which I went over in my Asia recap. Whatever the case may be, the Aussie was rocketing higher for some of the best gains of the day:

AUD/USD was up by 45 pips (+0.60%) to 0.7530, AUD/NZD was up by 25 pips (+0.23%) to 1.0925, AUD/JPY was up by 58 pips (+0.70%) to 84.04

Watch Out For:

  • 12:30 pm GMT: U.S. Core PCE Price Index m/m (-0.1% expected, 0.2% previous)
  • 12:30 pm GMT: U.S. Personal Income m/m (0.3% expected, 0.4% previous)
  • 12:30 pm GMT: U.S. Personal Spending m/m (0.2% expected, 0.1% previous)
  • 1:45 pm GMT: U.S. Manufacturing PMI (final) (52.8 previous)
  • 2:00 pm GMT: U.S. Construction Spending (0.4% expected, 0.8% previous)
  • 2:00 pm GMT: U.S. ISM Manufacturing PMI (56.5 expected, 57.2 previous)