All major Asian equities are trading slightly lower today, after Chinese trade data shows exports as strong but imports surprisingly weak for the day; the weakness could continue in the Asian markets. The euro is trading at 1.2289 down by 0.20%,
On the economic front today, we have the UK Industrial Production and Manufacturing Production for the month of May and, as per the Bloomberg survey, it is expected that the Industrial production will decline, whereas the Manufacturing Production may slightly increase.
There are no major economic releases expected today to drive the market so, we can emphasize on equity performance. US equities ended on a negative note yesterday, so the weakness might continue in the peer area. Going ahead, the euro might continue to stay weak, as manufacturing in France and Italy is weakening as Europe’s debt crisis threatens growth.
Earning season began last evening, as Alcoa reported a loss after markets closed.
EURUSD (1.2295) the euro traded sideways yesterday within a tight range waiting for news from the Eurogroup, as expected nothing happened accept a temporary reprieve for Spain. The euro is expected to hold to a pretty tight range in today’s session
The Great British Pound
GBPUSD (1.5506) with lackluster second tier eco data and a strong USD the pound dipped a bit during Monday’s session. Today, news from China and the Eurogroup outcome is expected to weight on the currency.
Asian –Pacific Currency
USDJPY (79.52) the yen dollar battle is curious, with the USD strong and the Yen weakened on poor eco data, but the possibility of BoJ inaction and the market move to safety again, keeps the yen strong against the USD. Traders have moved back to risk aversion, but no longer dominated by the EU but on global growth warnings and concerns, as Chinese data worries traders and negative eco data in Japan including a large drop in machinery orders.
Gold (1588.85) seesawed between small gains and losses looking for direction. Gold should continue to trend downwards with stops along the way, after a consolidation at this level we should see gold continue its decline.
Crude Oil (84.73) as the noise and threats from Iran quiet down and the strike by oil workers in Norway concluded, oil should return to its trading zone of earlier this month seeking the 80.00 level.