(MENAFN- DailyFX) DailyFX.com -
Talking Points:
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Euro to Look Past May Inflation Data, Focus on Greece-Related News Flow
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Australian Dollar Gains as RBA Disappoints Bets on Dovish Shift in Rhetoric
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S ee Economic Releases Directly on Your Charts with the DailyFX News App
The preliminary set of May Eurozone CPI figures headlines the data docket in European trading hours . The headline year-on-year inflation rate is expected to rise to 0. 2 percent, the highest in six months. The outcome seems unlikely to meaningfully drive the Euro however considering its limited implications for near-term ECB policy bets.
Rather, the single currency will look to Greece -related news-flow for direction cues. Negotiations have entered the proverbial 11 th hour amid worries that Athens may fail to repay over €300 million due to the IMF on Friday, triggering events leading to insolvency and a possible ejection from the Eurozone.
Key figures from the lender side of the impasse – German Chancellor Merkel, IMF Managing Director Lagarde, ECB President Draghi, French President Hollande and EC President Juncker – met to develop a list of conditions for Greece to meet in exchange for funding in a last-ditch attempt to avoid deeper crisis. Markets will keep a close eye on follow-up headlines to gauge how the effort will progress in the days ahead.
The Australian Dollar underperformed in overnight trade, rising over 1 percent on average against its top counterparts, following the RBA monetary policy announcement . While policymakers’ decision to keep the cash rate unchanged at 2 percent was widely expected, a parallel drop in the Aussie and front-end bond yields in recent weeks hinted at pre-positioning for a dovish forward guidance turn. That did not materialize, with Governor Glen Stevens and company keeping to a non-committal, data-dependent posture.
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Asia Session
|
GMT
|
CCY
|
EVENT
|
ACT
|
EXP
|
PREV
|
|
22:45
|
NZD
|
Terms of Trade Index (QoQ) (1Q)
|
1.5%
|
1.7%
|
-2.3%
|
|
23:30
|
AUD
|
Australian Weekly Consumer Confidence Index
|
113.5
|
-
|
113.5
|
|
23:50
|
JPY
|
Monetary Base (YoY) (MAY)
|
35.6%
|
-
|
35.2%
|
|
23:50
|
JPY
|
Monetary Base End of period (¥) (MAY)
|
307.4T
|
-
|
305.9T
|
|
01:30
|
JPY
|
Labor Cash Earnings (YoY) (APR)
|
0.9%
|
0.3%
|
0.0%
|
|
01:30
|
JPY
|
Real Cash Earnings (YoY) (APR)
|
0.1%
|
-
|
-2.7%
|
|
01:30
|
AUD
|
BoP Current Account Balance (1Q)
|
-10.7B
|
-10.8B
|
-10.2B
|
|
01:30
|
AUD
|
Net Exports of GDP (1Q)
|
0.50
|
0.00
|
0.70
|
|
04:30
|
AUD
|
RBA Cash Rate Target (JUN 2)
|
2.00%
|
2.00%
|
2.00%
|
European Session
|
GMT
|
CCY
|
EVENT
|
EXP
|
PREV
|
IMPACT
|
|
07:55
|
EUR
|
German Unemployment Change (MAY)
|
-10K
|
-8K
|
Medium
|
|
07:55
|
EUR
|
German Unemployment Rate (MAY)
|
6.4%
|
6.4%
|
Medium
|
|
08:30
|
GBP
|
Net Consumer Credit (APR)
|
1.0B
|
1.2B
|
Low
|
|
08:30
|
GBP
|
Net Lending Sec. on Dwellings (APR)
|
1.9B
|
1.8B
|
Low
|
|
08:30
|
GBP
|
Mortgage Approvals (APR)
|
63.5K
|
61.3K
|
Medium
|
|
08:30
|
GBP
|
M4 Money Supply (MoM) (APR)
|
-
|
0.3%
|
Low
|
|
08:30
|
GBP
|
M4 Money Supply (YoY) (APR)
|
-
|
-0.6%
|
Low
|
|
08:30
|
GBP
|
M4 Ex IOFCs 3M Annualised (APR)
|
4.0%
|
2.5%
|
Low
|
|
08:30
|
GBP
|
Markit/CIPS UK Construction PMI (MAY)
|
55.0
|
54.2
|
Medium
|
|
09:00
|
EUR
|
Eurozone PPI (MoM) (APR)
|
0.1%
|
0.2%
|
Medium
|
|
09:00
|
EUR
|
Eurozone PPI (YoY) (APR)
|
-2.0%
|
-2.3%
|
Medium
|
|
09:00
|
EUR
|
Eurozone CPI Estimate (YoY) (MAY)
|
0.2%
|
0.0%
|
High
|
|
09:00
|
EUR
|
Eurozone CPI Core (YoY) (MAY A)
|
0.7%
|
0.6%
|
High
|
Critical Levels
|
CCY
|
Supp 3
|
Supp 2
|
Supp 1
|
Pivot Point
|
Res 1
|
Res 2
|
Res 3
|
|
EURUSD
|
1.0793
|
1.0873
|
1.0900
|
1.0953
|
1.0980
|
1.1033
|
1.1113
|
|
GBPUSD
|
1.5050
|
1.5155
|
1.5178
|
1.5260
|
1.5283
|
1.5365
|
1.5470
|
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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