Morning Market Update – Pound Expecting Much Needed Support

So Far

United States API Weekly Crude Oil Stock: 0.882M vs -5.78M

New Zealand showed some decline as the data release didn’t meet the expectation for the day

New Zealand Producer Price Index – Output (QoQ) dipped from previous 1.5% to 1.4% in 1Q

New Zealand Producer Price Index – Input (QoQ) dipped from previous 1% to 0.8% in 1Q

Japan too have not meet the expected results for the day

Japan Machinery Orders (MoM) came in below expectations (2.1%) in March: Actual (1.4%)

Japan Machinery Orders (YoY) came in below forecasts (0.6%) in March: Actual (-0.7%)

Mixed reactions were seen on the Australian release as Australia Westpac Consumer Confidence went down to -1.1% in May from previous -0.7%

Australia Westpac Consumer Confidence Index: 98 (May) vs previous 99

Australia Wage Price Index (QoQ) meets forecasts (0.5%) in 1Q

Australia Wage Price Index (YoY) in line with expectations (1.9%) in 1Q

The People’s Bank of China (PBOC) has set the Yuan reference rate at 6.8635 versus the previous day’s fix of 6.8790

Coming Up

Since the start of the day, we have seen that there have been mostly negative signals across the market and many of them have not meet the expected results.

Moving on from here, we have Japan’s Industrial Production which have been forecasted to remain at negative 2.1% as previous any decline in the results can prove further trouble for the yen.

Euro have the Non-monetary policy’s ECB meeting later in the day. Consumer Price Index which has been forecasted at 1.9% doesn’t have any major deflection from previous release too. The Consumer Price Index, however, is signaling negative with low reading at 0.4% which was in a better shape in the previous release at .8%.

Pound have some major release in the day with Average Earnings including Bonus showing slightly better results at 2.4% against previous of 2.3%. ILO Unemployment Rate remains to hold the previous level of 4.7%. The major boost for the pound comes with Claimant Count Change which is forecasted to be a 7.5K compared to the previous fix which was seen at 25.5K which should provide the strong support pound have been looking for in recent days.

Canadian Manufacturing Shipments are in for a major good results in the segment with 1.0% where the shipments were negative at 0.2% during the previous release and should provide the much needed output for Canadian.

Dollar have only data release in the form of EIA Crude Oil Stocks change which have been forecasted to be at negative 2.283M where has previous where at negative 5.27M.