The session started on a positive note with risk assets in demand on news that the US-North Korea summit may yet still be happening but as traders digested the imminent possibility of fresh elections in Italy the Euro began to shake off its Asian session rise and then fell sharply, to a new 6 month low against the dollar, with further downside momentum looking very likely. It has been a UK/US holiday so liquidity is thin and most of the other pairs are not too far removed from their previous levels. Gold remains heavy, just under 1300, as does WTI at 66.5. US stock markets are closed for the day.
Looking ahead, it will be another thin calendar for the coming session although, with the US and the UK back from holidays, the session will see greater liquidity. The Japanese Unemployment data for April and a speech from the fed’s Bullard will be the key points in Asia. Europe is pretty much data free, while the US will only have the Case Shiller House Price Index (Mar) and the Dallas Fed Mfg Business Climate (May) to contend with. Things will warm up tomorrow, with the US GDP (Q1-Preliminary) and then on Friday we get the US Jobs/NFP/Average Hourly Earnings.
I will now be travelling for 3 week’s so updates will be limited and rather sporadic.
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