Forex today witnessed resurgent demand for the Yen across the board, as sentiment soured somewhat on reports that the White House Deputy Chief of Staff for Operations is to leave. Meanwhile, the Aussie got sold-off into dismal Australian trade figures, despite higher oil and copper prices.
As a result, the AUD/JPY cross emerged as the main mover in Asia, having dropped -0.50% to test the 84.00 support zone. The Kiwi ditched its Asian peers and edged higher, underpinned by broad-based US dollar weakness amid renewed US political jitters heading towards the Group of seven (G7) leaders’ meeting scheduled on June 8th and 9th.
Main topics in Asia
US Pompeo: US “won’t allow” Iran to build nuclear weapons – Reuters
As reported by Reuters, US Secretary of State Mike Pompeo stated on Wednesday that the US is aware of reports that Iran plans to increase its uranium enrichment capacity, and that Washington will not allow Iran to build nuclear weaponry.
Trump setting up for a battle with Congress over tariff bill – Politico
According to reporting by Politico, US President Trump made a personal phone call to Republican Senator Bob Corker, asking him to back away from his bill proposal.
Australia’s trade surplus shrinks more than expected in April
Australia’s trade surplus shrunk to AUD 977 million in April from the March surplus of AUD 1527 million, according to Australian Bureau of Statistics (ABS).
Russia’s President Putin to pay a state visit to China from June 8th – 10th
Reuters reports that the Russian President Putin will pay a state visit to China this weekend.
White House Deputy Chief of Staff (Operations) to leave – WaPo
Washington Post (WaPo) quoted four people familiar with White House planning, citing that Joseph Hagin, White House Deputy Chief of Staff for Operations is to leave.
China’s Commerce Ministry: Willing to increase imports from US and other countries
China does not want an escalation of trade friction with the US and is willing to increase imports from the US and other countries, the Commerce Ministry said on Thursday, according to Reuters News.
UK PM May accused of deceiving ministers over Brexit – The UK Times
The UK Times carried a report ahead of the voting next week, citing that the UK PM Theresa May kept the Brexit Ministers in dark over a key negotiation document until hours before it was due to be published.
Key Focus ahead
Today’s EUR macro calendar kicks-off with the Swiss jobless rate and German factory orders data while in the European session, the EUR, GBP traders will look forward to the UK Halifax HPI and Eurozone final Q1 GDP figures amid a lack of first-tier economic releases. The Eurozone Q1 GDP third estimate is expected to arrive at 0.4% q/q, confirming the flash reading.
Later on Thursday, the US jobless claims will be reported ahead of the Bank of Canada (BOC) Financial System Review, which will have some impact on the Canadian dollar. Besides, the speeches from the Bank of England (BOE) MPC member Ramsden and BOC Governor Poloz will drop in at 1500 GMT and 1515 GMT respectively.
EUR/USD: Upbeat Eurozone GDP would add credence to the hawkish ECB rhetoric
The EUR/USD pair rose to 1.18 in Asia – the highest level since May 22 and will likely rally further if the Eurozone first quarter GDP, due at 09:00 GMT, beats estimates.
GBP/USD spinning in place near 1.34 as Thursday sees little impact ahead of US jobless claims
Thursday brings a limited showing on the economic calendar, with May’s Halifax Housing Prices at 07:30 GMT, forecast at 2.0% for the month-on-month reading (last -3.1%) and 2.4% for the quarterly figures (last 2.2%).
Trump considering adopting a confrontational tone at G7 leaders’ meeting
Media reports are crossing the wires now, citing that the US President Trump is considering adopting a confrontational tone at Group of Seven (G7) leaders’ meeting later this week in Canada.
Oil: Investors to remain in wait-and-see mode ahead of June OPEC meeting – ANZ
Analysts at ANZ offer their outlook on oil prices heading towards the OPEC meeting held later this month on June 21st – 22nd.
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