ASIA-PACIFIC

Asian equity markets were again mixed as markets priced in the recent Chinese CPI data which far exceeded expectations, printing a 19 month highs of 2.3% vs an expected 1.8%. The Shanghai Comp. however, was not too excited by the data as the slowdown in liquidity injection in recent days trumped the positive data and resulted in a -0.6% close for the index. The ASX 200 closed slightly negative at – 0.14% while the Nikkei outperformed with a finish of +1%.

The kiwi was the big loser yesterday after the RBNZ cut the Cash rate by a surprise 0.25% to 2.25% and topped off the evening with dovish comments, stating that further easing may be required, which led to the NZD losing 200 pips against the greenback.

USA

US equities slightly in the green as risk on sentiment peeked into the markets yesterday after the resurgence in oil prices continues. The DJIA posted gains of 0.21%, the S&P 500 finished up 0.58% and the NASDAQ topped it off with a +0.65% finish.

Today sees data in the form of Unemployment Claims, expected at 272K, being released. Markets will be looking to this figure as further confirmation that the US job market has turned the corner.

UK

The GBP was muted in yesterday’s trade despite better than expected Manufacturing data which has seen the sector expand by 0.7% vs the expected 0.2%. Underpinning the GBP is of course the resurfacing of BREXIT in the media, with polls showing that 41% of Britons would vote to leave the EU vs 40% who would vote against. Trade GBPUSD on Opteck.com

EU

Today’s ECB meeting will be a telling one with markets widely expecting further easing by the central bank, the question however, is how and by how much? The minimum bid rate is expected to remain at 0.05% but some market analyst are saying that a cut is more likely while others are saying that the ECB will forgo a cut this month and instead use other tools at its disposal in an attempt to prop up the sagging EU economy. Markets have been very careful to not be too dovish and have as a result kept the EUR bid, should the ECB come out more dovish than expected we would expect to see moves in the several 100 pips down. However, a less dovish tone will see a move up but with less vigour. Whatever the case, volatility will be a plenty with profitable opportunities all around.

CANADA

The Canadian dollar strengthened across the board after the BOC left rates unchanged at 0.5% and stated that they see global volatility abating and the near term outlook to be holding up as employment and consumer spending figures prop up domestic demand.

Today’s figures out of the region are the NHPI m/m, Capacity Utilization Rate expected at 0.2% and 81.9% respectively. BOC`s Gov Poloz is also due to speak later in the session.