Weekly Overview – EZ CPI and US NFP in Focus
▸Moody’s downgraded China for the first time in 30 years to A1 from Aa3 on concerns of increasing debt levels and cooling activity.
▸Negative week for Euro Area stocks while UK and US experiencing gains. US stocks erase early May losses and now back in plus. In FX, the US Dollar recovered some of the previous week’s massive losses. US Housing disappointed while labour markets remained firm. Q1 US GDP revised higher by 0.3% to 1.2% QoQ.
▸Gold pushing higher for the third week in a row while oil on back of weaker of a disappointing outcome at the OPEC meeting.
▸Volatility stays on the weak side and FX vols are also subdued. EURUSD daily ATR50 at 72 pips against 100+ in January 2017.
▸This week, markets will watch the EZ CPI on Wednesday with great interest as regional CPIs have shown an upward trajectory putting pressure on the ECB to be hawkish on the June meeting.
▸From the US, focus will be on Tuesday’s Pending Homes Sales, Income and Spending and PCE, Thursday’s ISM Manufacturing and finally the April job report on Friday, where NFP is expected at 182k vs. 211k prior.
Read the full Weekly Overview here: 20170529 – weekly
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