Morning Markets: Eurozone's deflation spectre softens
Source: Saxo Bank
As of 0655 GMT
(Red indicates a move down, green indicates a move up)
- Eurozone Producer Price Index (0900 GMT)
- US Redbook Index (1255 GMT)
- US: ISM Non-Manufacturing Index (1400 GMT)
The risk of deflation in the Eurozone is expected to recede further with today's producer price inflation data.
Economists are optimistic that the tide is turning on deflation in the region, but slowly. Year-over-year PPI will continue to fall by 2.3% through the end of the first quarter, according to consensus forecasts, with PPI’s deflationary bite expected to soften for the second straight month.
Elsewhere, the search for bright spots in the US economy after a lacklustre first quarter continues and investors will be keenly scrutinising store sales and services sector data.
US trade balance data published at 13:30 BST will be the highlight of the NY session. Canadian trade figures are also out today, with USDCAD trading at 1.2131 ahead of the release.
There are also Swedish industrial production data prints at 08:30 BST with USDSEK and EURSEK trading right now at 8.4060 and 9.3384 respectively.
- The Reserve Bank of Australia cuts interest rates to a record low from 2.25% to 2%.
- RBA cites 'ongoing economic weakness' for its decision.
- Brent crude oil futures slip to $66 a barrel, falling from a 2015 high.
- HSBC Manufacturing PMI for China lower than the previous reading.
- The Hang Seng Index trades down almost 1.5% currently.
- AUD pushes broadly higher, up nearly nearly 1% vs. USD.
- EUR extends its negative streak, taking EURUSD to near 1.1130.
- GBPUSD trading flat around 1.512.
- USD steady against the yen, with USDJPY holding at 120.14.
- EURJPY down 0.32% to 133.45.
- EURUSD one month straddles open today at a volatility of 12.95%.
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