Asia lacked conviction this morning, with the major equity indices looking mixed although the majority of inidcies were mostly marginally higher up to the time of writing. Ths situation and handover from the US counterparts was very much the same.
It seems that moves higher were held backwards given the prevailing concerns of the trade tit-for-tats between the US and its key partners.
Euro continues to stand tall as it continues its recovery and distancing from 29th May lows. EURUSD is currently trading at 1.1721 and is within distance of the weekly highs of 1.1744 so far seen last Monday. ECB faces an interest rate decision next week and hearsay ahead of the event seems to suggest that the ECB could possibly make public its thoughts on when the current QE program could end.
In the meantime newly elected Prime Minister Giuseppe Conte listed some of the items on the Government’s agenda and the euro must have been relieved that leaving the euro was not one of them.
Overnight data showed that GDP in Australia was higher than expected for the 1st quarter, with the Y/Y figure at 3.1% and the Q/Q figure at 1%. Ahead of us today we have retail PMIs from the EZ and US trade balance.
