Market Brief

The Usd was weaker in the Asian Session, as the closely-watched US Treasury auction yesterday took place without incident. The EurUsd traded between 1.4005 and 1.3936, while the UsdJpy traded between 95.00 and 95.50. The coverage ratio suggested that there is still strong demand for US sovereign debt and confidence (based on 54.4% share of indirect bids) in the greenback place as the world's reserve currency. However, we still have two more auctions scheduled this week (today $35bn of 5yrs). Risk appetite, which had softened, rallied back with Wall Street closing higher and Asian indexes following the US' lead. USD sold off in tandem with a bounce in risk appetite and commodities resumed their rally to corroborate a bullish outlook on global growth. In addition, the positive sentiment was helped by a very strong Conference Board consumer confidence index, coming in at 54.9 vs. 42.6 exp, 39.2 prior reading. Ahead today the market will focus on the 5yr auction and US housing data.

In Japan , trade data showed merchandise trade balance coming in above expectations at Y69bn versus deficit of Y55bn. The figures will come as a relief to the government and the BoJ, both of which have recently upgraded their views on the economy and pinned hopes of a recovery on an improvement in exports. The sharp deterioration in economic and financial conditions in Japan and abroad since last Autumn is starting to level out and there is a prospect of a mild recovery ahead, Shirakawa said earlier in the day in a speech.

G10 Advancers and Decliners vs USD

Global Indexes Current Level % Change
Nikkei 225 Index9,438.77+ 1.37
Hang Seng Index17,885.27+ 5.26
Shanghai Index2,632.93+ 1.71
FTSE 100 Index4,428.22+ 0.37
DAX Index5,004.49+ 0.37
SMI Index5,440.69+ 0.17
DJIA futures8,474.00+ 0.15
World Markets Current Level % Change
Gold949.10- 0.30
Silver14.52- 0.59
VIX30.62- 6.16
Crude wti63.18+ 1.16
USD Index80.21+ 0.15
Todays Calender Estimates Previous Country / GMT
NBP interest rate announcement, %3.753.75PLN / ---
BBA mortgage approvals, K May--26.1GBP / 08.30
BBA net mortgage lending, £ bn May--3.7GBP / 08.30
BBA net consumer credit, £ bn May--0.1GBP / 08.30
CPI, % y/y Apr8.38.5ZAR / 09.30
FHFA house prices , % q/q saar (y/y) Q1---13.0,-8.2USD / 14.00
Existing home sales, mn saar Apr4.654.57USD / 14.00