Morning Market Update – Ending the Week with Caution

So Far

New Zealand Business NZ PMI dipped from previous 57.8 to 56.8 in May

Japan Money Supply M2+CD (YoY) remains unchanged at 4.3% in April

The People’s Bank of China (PBOC) set the Yuan mid-point rate at 6.8948 vs. the previous day’s fix of 6.9051.

PBOC injects CNY 66.5bn via 6 months and CNY 392.6bn via 12 month Medium-term Lending Facility (MLF) earlier today.

Coming up

Moving on for the day, Germany has a few major releases starting with Consumer Price Index and Harmonised Index of Consumer Prices which seem to be not much of concern and remain at the previous level. The major boost comes with Gross Domestic Product n.s.a (YoY) which are forecasted at 1.7% as against previous of 1.2% should be enough to give good support along with Gross Domestic Product s.a (QoQ) which as well are looking better with 0.7% compared to previous of .2%.

Euro too is looking better with Industrial Production s.a. (MoM) taking a positive 0.3% as against the previous release which was seen at a negative 0.3%. The major impact comes from Industrial Production w.d.a. (YoY) which are forecasted at 2.3% as against previous 1.2% to show they are doing better than expected for the day.

Greenback has some major release too and can make the day for the dollar as there have been some slow move with the results showing mixed reactions from the market. The Consumer Price Index shows positive signs for them, while being sidelined by Retail Sales control group which are forecasted at 0.4% as compared to previous of 0.5%. With the Retail Sales (MoM) signaling they are better as against the last data release where we had seen them at negative 0.2% and posted to be major boost with 0.6%, Retail Sales ex Autos (MoM) too are providing good results in the day.

Any positive data release from Consumer Price Index can move the market in their favor. With Michigan Consumer Sentiment Index holding the previous levels, we end the day mostly favoring the greenback keeping in mind being the weekend we shall be in the market with more caution during the close of the session.

 
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