The US$ is mixed ahead of the Thursday session, while stocks are up by around 0.3%, despite US yields also heading north, to currently sit at 3.1%, after a session in which politics was the main driver of the price action. The Euro was hit by reports that a likely future Italian government would seek debt forgiveness from European creditors, although it has since recovered from its new trend lows. The US$ maintained its recent gains against the Jpy and Sterling, which is under political Brexit inspired pressure of its own, but was set back a little elsewhere, with renewed North Korean concerns causing traders t take a more cautious stance.
In terms of data, the US housing starts dropped -3.7% to 1.29mio annualised in April, below expectation of 1.33mio, while the building permits dropped -1.8% to 1.35mio in line with expectations. Industrial Production was just above expectations, while the Capacity Utilisation just missed.
Looking ahead, NZ will kick things off today with the Q1 PPI (exp 0.2% mm, 0.3% yy) and this will be followed by the Australian Unemployment (exp +20K, 5.5%). The rest of the day will be dominated by CB speakers, including 2 from the ECBs Constancio as well as the Fed’s Kashkiri, and Kaplan and the BOE’s Haldane. Also due will be the EU Construction Output for March, the US weekly Jobless Claims and the May Philadelphia Fed Mfg Survey. Have a good day
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