Headlines:
- Euro nudges a little lower after the data releases
- Why the markets went into risk-off yesterday?
- Stocks stay on the defensive so far on the session
- BOJ's Adachi: Will respond if FX moves have material impact on economy, prices
- Germany May Bavaria CPI +2.7% vs +2.5% y/y prior
- Germany June GfK consumer sentiment -20.9 vs -22.5 expected
- France May consumer confidence 90 vs 91 expected
- Eurozone Money Supply M3 Y/Y 1.3% vs. 1.3% expected
- Switzerland May UBS investor sentiment 18.2 vs 17.6 prior
- US MBA mortgage applications w.e. 24 May -5.7% vs +1.9% prior
Markets:
- USD leads, AUD and NZD lag on the day
- European equities lower; S&P 500 futures down 0.7%
- US 10-year yields up 3 bps to 4.571%
- Gold down 0.7% to $2,344.65
- WTI crude up 0.8% to $80.44
- Bitcoin down 0.7% to $67,803
The risk mood is staying more cautious today, after having soured in US trading yesterday. The selloff in bonds was a trigger and that continued a little today, with yields sitting higher across the board.
Equities are pinned down once again while the dollar is slightly bid after some light changes earlier to start the session.
EUR/USD is down 0.2% to 1.0835 with USD/JPY holding at 157.20 levels after a brief dip to 157.00 at the end of Tokyo trading.
The commodity currencies are the laggards amid the dour risk mood. AUD/USD and NZD/USD are both down 0.3% to 0.6628 and 0.6123 respectively.
There wasn't much else for traders to work with on the economic calendar. German inflation looks to be coming in more or less in line with estimates, but perhaps slightly on the softer side. That said, it doesn't change up the ECB narrative for next week and the overall outlook for now at least.
In the commodities space, we're seeing metals drop back with gold down 0.7% to $2,344 and silver retreating back under $32 to $31.90 now. Copper is also easing back, down a little over 1% to under $4.79 per pound.
