Headlines:
- EU bumps up 2023, 2024 growth and inflation forecasts
- ECB reaffirms lagging impact of rate hikes in latest bulletin
- China's central bank reaffirms to keep liquidity reasonably ample
- Germany April wholesale price index -0.4% vs +0.2% m/m prior
- Eurozone March industrial production -4.1% vs -2.5% m/m expected
- Switzerland April producer and import prices +0.2% vs +0.2% m/m prior
- SNB total sight deposits w.e. 12 May CHF 520.1 billion vs CHF 525.6 billion prior
Markets:
- AUD leads, JPY lags on the day
- European equities higher; S&P 500 futures up 0.4%
- US 10-year yields up 2.2 bps to 3.485%
- Gold up 0.2% to $2,015.03
- WTI crude up 0.6% to $70.45
- Bitcoin up 3.7% to $27,423
It was a relatively slow session but there were some decent moves in markets to start the new week.
The dollar is seeing a bit of a light pullback as risk sentiment recovers, with equities pushing higher in European morning trade. That weighed on the greenback as well as the yen, with a slight rise across the board for other major currencies.
EUR/USD moved up from 1.0860 to 1.0880 while GBP/USD moved up from 1.2460 to 1.2500 during the session. The antipodeans were the lead gainers, with AUD/USD improving from 0.6670 in Asia to 0.6690 and holding at the highs for the day now. NZD/USD is also up 0.4% to 0.6215 but off its earlier high of 0.6230 earlier in the day.
USD/JPY also pushed higher as yields moved up amid the better risk sentiment, with the pair holding just above 136.00 for now - up 0.3% on the day.
Elsewhere, commodities also traded higher across the board as it is a case of a dollar pullback mostly amid a slight bounce in the risk mood to kick start the week.
