The US$ has risen to its highest level of the year against its major counterparts due, in part, to worries about increasing political turmoil in Italy, which placed pressure on the Euro, before paring some of its gains after the US decision to withdraw from the international nuclear deal with Iran. The commodity bloc also took a hit, breaking to new 2018 lows in early European trade, at around the time of the Australian Budget, and remains heavy heading into Wednesday trade. Stock markets have been relatively stable after Donald Trump announced the US exit from the Iran deal although WTI has been highly volatile, in diving by almost 4% before regaining those losses equally quickly to sit almost unchanged on the day, currently at 70.00.
Wednesday sees a pretty empty economic calendar and it looks like being politics that’s sets the agenda. Asia will see the NZ Electronic Card Retail Sales, the Australian WBC Consumer Confidence and the Japan Leading Economic Index and Coincident Index. Europe has no data at all, while the US will look to the March Wholesale Inventories (exp 0.5%) and the May PPI for guidance (exp 0.2% mm, 2.8% yy). Oil traders will look to the EIA Crude Oil Stocks Weekly Change for guidance.
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