Antipodeans slip as China imports plunge, focus on UK data
The Asian traders cheered the US-Mexico trade progress and increased bets of a Fed rate cut at the start of a brand-new holiday-thinned week, as reflected by the risk-on rally in the Asian equities. However, the optimism soon faded somewhat after the Chinese trade data showed the country’s imports slumped the most in nearly three months, leading to a bigger-than-expected expansion in the trade surplus. The poor data re-ignited the China slowdown fears and weighed on the domestic currency and the Chinese proxies, the Antipodeans.
The focus in today’s EUR macro calendar will be on a slew of fresh UK economic releases, including the monthly GDP, trade balance, industrial and manufacturing production data, all of which will be reported at 11:30. At the same time, markets will look forward to the Eurozone June Sentix Investor Confidence data for some trading impetus on the Euro, as the German, Swiss and French markets are closed today in observance of Whit Monday.
EUR/USD: Off 11-week highs, but risk reversals greater bias for strong EUR
EUR/USD has pulled back to 1.1310 from Friday’s 11-week high of 1.1348, but the path of least resistance is still on the higher side, according to risk reversals.
Trading Central – EURUSD: sentiment is a buy to 1.1350 if Above 1.1300
GBP/USD on the back foot ahead of UK’s monthly production details
With the latest risk-on sentiment helping the US Dollar (USD) to recover some of its latest losses and political uncertainty surrounding the UK, the GBP/USD pair remains on a back foot heading into the London open on Monday.
Trading Central – GBPUSD: sentiment is a sell down to 1.2580 if Below 1.2850.
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