Headlines:
- What is priced in for the ECB going into the decision today?
- EURUSD Technical Analysis – A look at the chart ahead of the ECB decision
- The bond market stays in focus ahead of ECB, US data later
- BOJ's Ueda: Inflation expectations are gradually rising but yet to reach 2%
- BOJ's Nakamura says raising rates now would be premature
- BOJ's Nakamura says cannot directly control FX moves with monetary policy
- US May Challenger layoffs 63.82k vs 64.79k prior
- Eurozone April retail sales -0.5% vs -0.3% m/m expected
- Germany April industrial orders -0.2% vs +0.5% m/m expected
- Germany May construction PMI 38.5 vs 37.5 prior
- UK May construction PMI 54.7 vs 52.5 expected
- Switzerland May seasonally adjusted unemployment rate 2.4% vs 2.3% prior
Markets:
- CHF leads, NZD lags on the day
- European equities higher; S&P 500 futures flat
- US 10-year yields up 2.1 bps to 4.310%
- Gold up 0.2% to $2,359.29
- WTI crude up 0.9% to $74.75
- Bitcoin down 0.2% to $71,020
It was a slower session in general as market players are waiting on the bigger events later today. The ECB policy decision and US weekly jobless claims are in focus, so that is keeping markets in a more pensive mood.
In FX, the dollar is keeping steadier amid some light pushing and pulling. EUR/USD is lightly changed at 1.0865 while USD/JPY is also flattish at around 156.15 on the day currently. This comes as equities are also holding a more pensive mood with US futures more subdued after yesterday's gains in Wall Street.
Bond yields are a little higher on the day but there is the ECB still to come, alongside US data later.
There weren't much notable headlines as well, with only BOJ governor Ueda pretty much reaffirming that the central bank will taper bond purchases this month. Besides that, euro area data was less than ideal but nothing that will put off the ECB from cutting rates later.
