Daily digest market movers: Empty calendar ahead
- Gareth Berry, the FX and Rates strategist from Macquarie, is expecting the USD/JPY pair to fall to 120.00. This squeeze lower is expected to happen in the next 18 months, Bloomberg reports.
- Head of sales and trading business at Mitsubishi UFJ Trust and Banking Corporation Takafumi Onodera noted that the Japanese authorities will not intervene until Friday’s US Personal Consumption Expenditures (PCE) print. A stronger-than-expected report could spur volatility and send the Yen hurtling toward 163.00 against the US Dollar, spurring officials to make a “rate check” or intervene during a period of thin liquidity. Rate checks warn traders that authorities may be preparing to step in to support the Yen.
- At 11:00 GMT, the Mortgage Bankers Association (MBA) will release the weekly Mortgage Application numbers for the week ending on June 21. Mortgage applications rose by 0.9% the previous week.
- At 14:00 GMT, New Home Sales data for May will come out. Analysts expect sales to increase slightly to 640,000 from April’s 634,000.
- The US Treasury will allot a 5-year Note in the markets at 17:00 GMT.
- The Federal Reserve’s Bank Stress Test report will come out at 20:30 GMT.
- Equities are recovering after Nvidia (NVDA) was able to eke out gains on Tuesday at the US closing bell. The main indices in Asia are all in the green, and even the Dax and the pan-European index, Euro Stoxx 50, are recovering. US futures are rather mixed, with the Dow Jones Industrial futures in the red against Nasdaq futures in the green, and the S&P 500 caught in the middle.
- The CME Fedwatch Tool is broadly backing a rate cut in September despite recent comments from Fed officials. The odds now stand at 57.9% for a 25-basis-point cut. A rate pause stands at a 35.9% chance, while a 50-basis-point rate cut has a slim 6.2% possibility.
- The Overnight indexed Swap curve for Japan shows a 56.6% chance for a rate hike on July 31, and a smaller 49.6% chance for a hike on September 20.
- The US 10-year benchmark rate trades near the weekly high at 4.27%.
- The benchmark 10-year Japan Treasury Note (JGB) trades around 1.023%, breaking above 1% for the first time since June
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
If you like, reward to support.
Hot
No comment on record. Start new comment.