Overnight and The Day Ahead 12.05.2016

Good Morning,

After yesterday’s gains is the Kiwi, today it is the poor performance of the Aussie dollar that catches the attention of the market.

Despite some interest at 79.50 in AUD/JPY out of Tokyo, the AUD/USD is down 0.5% on the day and down 4% over the past month.

Last week the RBA cuts rates to 1.75% and they have another 40 bps of cuts priced into the 1-year curve with the next cut fully priced in for November.

Toyota and Bridgestone earnings were disappointing, Nissan announces a tie up with Mitsubishi, Nissan are looking to take a third stake in the company, both boards are meeting. All Asian stocks markets indices are in the red, the risk off environment remains.

 The BOJ Governor Haruhiko Kuroda has had comments published from an interview with German’s Boersen-Zeitung, the headline statement was “Technically we can go as low as the ECB”.  Other comments included it is “Desirable for FX to reflect economic analysis“ and the “Finance Minister is responsible for Japan’s FX Policy.”

The day ahead has ‘Super Thursday’ here in the U.K, finally some data to get our teeth into, actually it will be the speech by Governor Carney that will be of interest. Journalist will be quizzing his ‘Brexit / Bremain’ views. The Manufacturing sector continues to come under scrutiny output is still less than 20 years ago.

In other news Oil had a strong day yesterday up 3.5%, as output has declined to 8.8mio barrels a day the lowest level since September 2014, stockpiles fell 3.4mio barrels.

And finally Chelsea have ended their kit deal with Adidas six years early or have Adidas ended the deal early, who next? Under Armour, Nike, Puma and New balance are all believed to be interested. Google ban pay loans ads.

                                                                                                                (Cons)   (Prev)

09:00     EUR Industrial Production (MoM) (Mar)                                 0.0%      -0.8%

09:00     EUR Industrial Production (YoY) (Mar)                                     1.1%      0.8%

11:00     GBP BoE Asset Purchase Facility (May)                                   £375B    £375B

11:00     GBP BoE Interest Rate Decision (May 12)                               0.5%      0.5%

11:00     GBP Bank of England Quarterly Inflation Report

11:00     GBP BOE MPC Vote Unchanged                                                 9:9

11:00     GBP BOE MPC Vote Cut                                                                 0:0

11:00     GBP BOE MPC Vote Hike                                                               0:0

11:00     GBP Bank of England Minutes Report

11:45     GBP BOE's Governor Carney speech

12:30     USD Initial Jobless Claims (May 6)                                              270K      274K

12:30     USD Continuing Jobless Claims (Apr 29)                                  2.120M 2.121M

12:30     USD Import Price Index (YoY) (Apr)                                                          -6.2%

12:30     USD Export Price Index (MoM) (Apr)                                       0.1%      0.0%

12:30     USD Export Price Index (YoY) (Apr)                                                           -6.1%

12:30     USD Import Price Index (MoM) (Apr)                                       0.5%      0.2%

12:30     CAD New Housing Price Index (YoY) (Mar)                                             1.8%

12:30     CAD New Housing Price Index (MoM) (Mar)                         0.1%      0.2%

14:30     USD EIA Natural Gas Storage change (May 6)                                       68B

15:45     USD Federal Reserve Bank of Boston President Rosengren Speech

17:00     USD 30-Year Bond Auction                                                                           2.596%

17:30     USD Fed's George Speech

Have a great day

Anish S. Lal – VP Sales

FX & Precious Metals, Atom8 Financial Services LLP

2nd Floor, Centenary House, Palliser Road, London W14 9EQ, UK

T: +44(0)20 3405 3910 | M: +44 (0)7983701816 | anish.lal@atom8.com | www.atom8.com

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