The dollar is mixed, but not too far from previous levels, as traders begin looking to the release of the Fed’s minutes from its most recent FOMC meeting, due later today, with analysts suggesting that there could be inflationary overtones. Of note, Sterling’s rebound following the UK Inflation Report Hearing in early European trade was rather short-lived as BoE Governor Mark Carney’s report provided little support for Cable.
Stocks have pulled back because Donald Trump has hinted that the proposed meeting with the N Korean President may be cancelled. The metals and WTI are steady.
In terms of data, the Richmond Fed Mfg Index beat expectations, adding to support for the dollar.
Wednesday will be busy, beginning with the Australian WBC April Leading Index, Construction Work Done in Q1 and the Japanese Flash Nikkei Mfg PMI. The EU will follow up with the Flash Manufacturing/Services/Composite PMIs and the EU Consumer Confidence for May, while Cable traders will focus on the UK CPI, PPI and RPI for April (CPI, exp 0.5%mm, 2.5%yy; Core, exp 2.2%yy). The US will have its own PMIs, as well as the New Home Sales for April and will end the day with the key feature of the week, being the FOMC Minutes. Also note that the RBA Governor, Lowe is speaking at the Australia-China Relations Institute in Sydney at 6.00 AET today. Have a good day.
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