Asia equities started the session following suit to the side-ways trade on Wall Street, where investors’ mood was undecided on return from the extended weekend and amid mixed data releases. China continued to suffer from a stronger currency despite the PBoC’s endeavour to restrict the one-way plays on the Yuan through an increase in the FX reserve requirement ratio.
In the US equity complex, commercial banks and financials enjoyed the US Treasury yield curve bear-steepening amid inflationary pressures coming from the energy complex as WTI and Brent‘s contracts broke out, soaring from multi-month ranges. All eyes are turned to the US inflation benchmarks ahead of the May Non-farm payrolls (NFP) data on Friday. On US infrastructure, news reports noted Republicans have privately warned that there is “not going to be any deal on infrastructure” this week, barring some dramatic last-minute turnaround.
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.