- N.Korea says may reconsider summit with Trump, suspends talks with South
- Japan Q1 GDP -0.2% q/q, -0.6% annualized, unch/-0.2% eyed
- China Apr China House Prices YY, 4.7%, prev 4.9%
- U.S. lawmakers push back on Trump talk of helping China's ZTE
- China holds most US Treasuries since October, Japan lowest since ’11 data
- Australia Q1 Wage Price Index QQ, 0.5%, f'cast 0.6%, prev 0.6%
- Australia Q1 Wage Price Index YY, 2.1%, f'cast 2.1%, prev 2.1%
Economic Data Ahead
- (0500 ET/0900 GMT) EZ Apr HICP Final YY, f'cast 1.2%, last 1.2%
- (0500 ET/0900 GMT) EZ Apr HICP ex F&E YY, f'cast 1.1%, last 1.1%
Key Events Ahead
- N/A ECB Governing Council meeting. No interest rate announcements scheduled
- (0300 ET/0700 GMT) BoE's Michael Sheren: Panellist at the Chartered Alternative Investment Analyst Association London Educational Event
- (0410 ET/0810 GMT) BoE's Sarah John: Panellist at the Association of Corporate Treasurers' Annual Conference 2018 Liverpool
- (0700 ET/1100 GMT) IMF presents preliminary findings from the annual assessment of economic and financial development in Denmark
- (0815 ET/1215 GMT) ECB's Draghi speaks at Colloquium in honour of the ECB Vice President Vitor Constancio organised by the ECB in Frankfurt, Germany
- (0830 ET/1230 GMT) ECB's Coeure chairing Session 1 at Colloquium in honour of the ECB Vice President Vitor Constancio organised by the ECB in Frankfurt
- (0830 ET/1230 GMT) Fed's Bostic discusses the economy at an event sponsored by the Federal Reserve Bank of Atlanta, Georgia
- (1030 ET/1430 GMT) ECB's Praet chairing Session 2 at Colloquium in honour of the ECB Vice President Vitor Constancio organised by the ECB in Frankfurt
- (1730 ET/2130 GMT) Fed's Bullard holds media availability prior to a Homer Jones Memorial Lecture hosted by the Federal Reserve Bank of St. Louis
- (1830 ET/2230 GMT) Fed's Bullard gives opening remarks before the Homer Jones Memorial Lecture hosted by the Federal Reserve Bank of St. Louis
DXY: The dollar index eased after rising to a near 5-month peak in the previous session as the 10-year U.S. Treasury yield's retreat from 3.095 percent to 3.06 percent. The greenback against a basket of currencies trades 0.05 percent down at 93.25, having touched a high of 93.46 on Tuesday, its highest since Dec. 22. FxWirePro's Hourly Dollar Strength Index stood at 87.62 (Slightly Bullish) by 0500 GMT.
EUR/USD: The euro slumped to a 4-1/2 month low as a surge in the benchmark 10-year Treasury yield above 3 percent supported the greenback across the board. The European currency traded 0.05 percent down at 1.1832, having touched a low of 1.1815 earlier, its lowest since Dec. 19. FxWirePro's Hourly Euro Strength Index stood at -97.34 (Slightly Bearish) by 0400 GMT. Investors’ attention will remain on series of economic data from the Eurozone economies and Eurozone consumer price index, ahead of the U.S. housing starts, building permits, industrial production and Fed officials' speeches. Immediate resistance is located at 1.1894 (5-DMA), a break above targets 1.1978 (May 7 High). On the downside, support is seen at 1.1800, a break below could drag it till 1.1776 (Dec. 19 Low).
USD/JPY: The dollar eased after rallying to an over 4-month peak the prior session on easing tensions in the Korean Peninsula and moves by China and the United States to prevent a full-blown trade war. The major was trading 0.1 percent down at 110.25, having hit a high of 110.45 the day before, its highest since Feb. 2. FxWirePro's Hourly Yen Strength Index stood at 39.31 (Neutral) by 0400 GMT. Investors’ will continue to track broad-based market sentiment, ahead of the U.S. housing starts, building permits, industrial production and Fed officials' speeches. Immediate resistance is located at 110.48 (Feb. 2 High), a break above targets 110.98 (Jan. 16 High). On the downside, support is seen at 109.69 (5-DMA), a break below could take it lower 108.97 (10-DMA).
GBP/USD: Sterling consolidated within narrow ranges as weak economic data and a decision by the Bank of England to hold interest rates and cut its growth projections confounded sterling bulls. The major traded 0.05 percent up at 1.3505, having hit a low of 1.3451 on Tuesday, it’s lowest since Dec. 29. FxWirePro's Hourly Sterling Strength Index stood at 15.11 (Neutral) by 0400 GMT. Investors’ focus will remain on the U.S. fundamental drivers, amid a lack of economic data from the UK docket. Immediate resistance is located at 1.3608, a break above could take it near 1.3665. On the downside, support is seen at 1.3428, a break below targets 1.3405. Against the euro, the pound was trading flat at 87.60 pence, having hit a high of 87.54 pence earlier, it’s highest since May 10.
AUD/USD: The Australian dollar edged up after falling for two consecutive sessions on domestic slower than expected wage growth that cemented views that the Reserve Bank of Australia will hold rates at record lows for a prolonged period. The economy's annual wage growth came in at 2.1 percent in the first quarter, similar to the fourth quarter rate, and just above the all-time trough of 1.9 percent. The Aussie trades 0.1 percent up at 0.7481, having hit a low of 0.7566 on Friday; it’s lowest since Apr. 30. FxWirePro's Hourly Aussie Strength Index stood at -111.85 (Highly Bearish) by 0500 GMT. Investors will continue to track overall market sentiment, ahead of U.S. economic releases. Immediate support is seen at 0.7433 (May 8 Low), a break below targets 0.7412 (May 9 Low). On the upside, resistance is located at 0.7505 (10-DMA), a break above could take it near 0.7565 (May 16 High).
NZD/USD: The New Zealand dollar consolidated near a 5-month trough as markets now focussed on the new centre-left Labour government's first annual budget on Thursday. The Kiwi trades 0.2 percent up at 0.6873, having touched a low of 0.6851 earlier, its lowest level since Dec. 11. FxWirePro's Hourly Kiwi Strength Index was at -160.21 (Highly Bearish) by 0500 GMT. Investors’ will continue to track broad-based market sentiment, ahead of U.S. economic data. Immediate resistance is located at 0.6900, a break above could take it near 0.6960. On the downside, support is seen at 0.6835, a break below could drag it below 0.6805.
Asian shares declined after Pyongyang unexpectedly called off talks with Seoul, raising doubts over the U.S.-North Korean summit, while the dollar slightly eased as surging bond yields revived concerns about faster U.S. interest rate hikes that could hurt global demand.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.2 percent.
Tokyo's Nikkei eased 0.3 percent to 22,740.39 points, Australia's S&P/ASX 200 index rose 0.2 percent to 6,107.00 points and South Korea's KOSPI gained 0.1 percent to 2,462.70 points.
Shanghai composite index fell 0.4 percent to 3,179.84 points, while CSI300 index was trading 0.4 percent down at 3,908.24 points.
Hong Kong’s Hang Seng was trading 0.2 percent lower at 31,097.80 points. Taiwan shares shed 0.2 percent to 10,897.57 points.
Crude oil prices rose amid ongoing output cuts by producer cartel OPEC and looming U.S. sanctions against major crude exporter Iran. International benchmark Brent crude was trading 0.4 percent up at $78.29 per barrel by 0414 GMT, having hit a high of $79.43 on Tuesday, its highest since Nov. 2014. U.S. West Texas Intermediate was trading 0.2 percent up at $71.11 a barrel, after rising as high as $71.89 the day before, its highest since Nov. 2014.
Gold prices recovered after falling to a 4-1/2 month low in the prior session on surging U.S. bond yields and a stronger dollar. Spot gold rose 0.2 percent to $1,293.38 per ounce at 0418 GMT, having shed 1.7 percent and recording a low of $1,288.59 on Tuesday, its lowest price level since Dec. 28. U.S. gold futures for June delivery were up 0.2 percent at $1,293.30 per ounce.
The 10-year U.S Treasury yield stood at 3.066 percent lower by 0.013 bps, while 5-year yield was 0.011 bps down at 2.913 percent.
The Australian government bond futures eased, with the three-year bond contract down 3 ticks at 97.73. The 10-year contract slipped 5.5 ticks to 97.105.
The New Zealand government bonds were slightly up with yields down about 1 basis point across the curve.