Forex news from the European trading session - 1 June 2021
Headlines:
- Eurozone May preliminary CPI +2.0% vs +1.9% y/y expected
- Oil climbs to highest level since October 2018 ahead of OPEC+ meeting
- Eurozone May final manufacturing PMI 63.1 vs 62.8 prelim
- Switzerland Q1 GDP -0.5% vs -0.4% q/q expected
- UK Nationwide house prices +1.8% vs +0.8% m/m expected
- BOE's Ramsden: There is a risk that demand gets ahead of supply
- A couple of things to note in the RBA statement
- RBA leaves cash rate unchanged at 0.10% in June monetary policy decision
- Germany reports 1,785 new coronavirus cases, 153 deaths in latest update today
- SNB's Zurbruegg: Swiss franc is still highly valued
Markets:
- CAD leads, GBP lags on the day
- European equities higher, S&P 500 futures up 0.5%
- US 10-year yields up 2 bps to 1.615%
- Gold up 0.1% to $1,908.70
- WTI up 3.0% to $68.30
- Bitcoin down 0.3% to $36,065
The market is keeping steadier to kick start June trading, with risk assets looking buoyed and picking up from where they left off in May.
US futures are keeping higher but the main story is what looks to be a technical breakout in oil as it rises to its highest levels in five months above $68.
The OPEC+ meeting is underway so that presents a risk but barring any shock to the status quo, oil bulls may be finding enough conviction to finally break out.
In FX, the loonie keeps higher with USD/CAD easing from 1.2060 to 1.2030 while the rest of the major currencies bloc is mostly little changed.
The dollar was mildly weaker initially but reversed some of its losses from yesterday, particularly against the pound as cable fell from 1.4230 to 1.4170.
The aussie was initially stronger with AUD/USD holding around 0.7760 but gave back gains after the RBA maintained more dovish stance, to sit around 0.7740.
