Morning Market Update – Trouble for Swiss

So Far

The Federal Open Market Committee (FOMC) member Neel Kashkari said that he needs to see more economic data before deciding on a possible rate hike in June. In particular, he acknowledged that the U.S. economy is moving closer towards full employment. However, the wage inflation has been slow and it should pull in more workers, lessening the remaining slack in the labor market.

The United States API Weekly Crude Oil Stock dropped down from a previous 0.882M to -1.5M.

New Zealand’s imports dropped down from a previous $4.31B to $4.17B in April and New Zealand’s exports went up from a previous $4.65B to $4.75B in April.

New Zealand’s Trade Balance (YoY): $-3.48B (April) versus $-3.67B. New Zealand’s Trade Balance (MoM) was registered at $572M and went above expectations ($268M) in April.

The Bank of Japan (BoJ) Governor Kuroda, while speaking at the 2017 BoJ-IMES Conference, mentioned that the natural rate of interest has declined in the recent years.

Australia’s Westpac Leading Index (MoM) dropped down to -0.1% in April from a previous 0.1% and Australia’s Construction Work Done went below expectations (-0.2%) in 1Q: Actual (-0.7%)

Coming Up

Moving on for the day, we have the Swiss Industrial Production which continues to decline, causing trouble for the Swiss.

We must watch out for the European Central Bank (ECB) President Draghi’s speech which can boost up the weak Euro. The Bank of Canada (BoC) Rate Statement and BoC Interest Rate Decision remains unchanged with the interest rate at 0.5%.

The USD Existing Home Sales have slightly declined from a previous 5.71M and is forecasted at 5.68M. This has an impact on the dollar and weakens the greenback.  Later in the day, we have the EIA Crude Oil Stocks to be released along with the FOMC Minutes.
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