Headlines:
- Switzerland May CPI +2.9% vs +2.6% y/y expected
- Eurozone April PPI +1.2% vs +2.3% m/m expected
- ECB's Villeroy: Inflation is too high and too broad
- Russia reportedly may agree to OPEC+ compensating for its drop in oil output
- Fitch affirms China ratings at 'A+' with stable outlook
Markets:
- GBP leads, USD lags on the day
- European equities higher; S&P 500 futures up 0.5%
- US 10-year yields down 2.2 bps to 2.908%
- Gold up 0.5% to $1,854.52
- WTI crude down 2.3% to $112.59
- Bitcoin up 1.8% to $30,139
It is a London holiday today (and will be tomorrow as well) so that made for a bit quieter trading in Europe, though there are some decent moves to digest in the major currencies space.
The dollar nudged lower after holding steady across the board in Asia trading, triggered by a bid in the franc initially after higher Swiss inflation sparked concerns about how things will play out with the SNB.
USD/CHF dropped quickly from 0.9625 to 0.9580 before the dollar dribbled lower elsewhere across the board once the European cash market opened. Equities are keeping a slight advance and the pause in Treasuries selling are two reasons contributing to the dollar paring back some of its gains from yesterday.
EUR/USD moved up from 1.0650 to 1.0695 and is keeping at the highs, trading just under large option expiries layered at 1.0700 to 1.0750. Meanwhile, GBP/USD also gained modest ground in a push from 1.2490 to 1.2560 as the pound takes up the emerging currency mantle again in light trading today.
Meanwhile, USD/JPY crept lower from 130.10 to 129.65 while AUD/USD advanced from 0.7150 to keep just above 0.7200 as risk appetite improved during the session with US futures gaining.
This is pretty much the pull to yesterday's push, and that continues to support the notion that markets are still sorting out its feet for the time being. Elsewhere, oil is down over 2% on reports that OPEC+ is set to pump more to compensate for Russia's shortfall in output with a decision potentially being announced in today's meeting.
