Broader sentiment made it into positive territory on the last trading day for June, as the major US indices gained support for the day but nevertheless closed the week on a negative tone.
Sentiment this morning soured with Asia mostly into negative territory on Monday. On Friday of this week tariffs from both China and the US are expected to take effect. The trade wars issues has continued to rattle the markets and create volatility. Not only on tariffs and the further tariffs added as retailatary measures but most recently even trade policy on foreign investments more specifically between US and China.
Euro slips lower this morning reflecting tensions in Germany. German Interior Minister has reportedly offered his resignation on differences with regards the immigration issues. Minister Seehofer has been pushing for tougher immigration policy.
USD finds some support this morning after a negative week but nevertheless a positive June. Despite the concerns raised by the escalating trade wars, the USD has remained supported by the expected further rate hikes coming out of the Fed.
The JPY seems untouched by some weakness in the Japanese Tankan data for the second quarter. Overall the JPY has held positvely against most of the major currencies, only giving in slightly when seen against the USD.
Later today we are expecting the EZ, UK and US manufacturing PMIs for the month of June. From the EZ we will also see the latest PPIs for May and the unemployment rate for May as well. The US will also release the figure for construction spending.
