Overnight Summary

  • Hawkish comments from RBA minutes
  • Portugal's $111 Billion bailout approved
  • UK CPI (APR) Y/Y @ 4.5% higher than 4.1%
  • GBPUSD jumps to 1.63 after hot CPI number
  • UK: Core CPI at highest level since records began in 1997
  • UK: Inflation surge increases rate pressure on MPC
  • BOE KING: Economic weakness could drag inflation below target, without commodity price increases inflation would be below target
  • BOE KING: Without these factors - sales tax, higher energy prices - inflation would have been substantially lower, probably below target
  • UK yield curve pricing in 25bp hike in Dec but nothing before
  • German ZEW survey (econ sentiment) (MAY) comes in at 3.1 lower than the 4.8 expected
  • EU: ZEW ECONOMIC SENTIMENT lower at 13.6 in May vs. 19.7
  • EUROGROUPS JUNCKER says we have to get to a soft restructuring of Greek debt
  • USDJPY broke out above 81.00 big figure to reach a high of 81.786
  • Dollar gaining momentum against the majors after treading in the red overnight
  • GBPUSD back to pre-CPI hot numbers earlier @ 1.622
  • Carry trade currencies taking off higher