- US CPI figures rebounded in April, although the y/y rates came in 0.1%pts below expectations, at 2.2% y/y and 1.9% respectively. Core inflation dropped below 2.0% for the first time since October 2015.
- US June rate hike odds slip closer to 70% from 8-in-10 earlier in week, odds for second rate hike before year end back to 50/50; Dollar Index pulls back but holds 200 dma. S&P500 sitting in the middle of its 3-week range at 2,391
- While the pound trades in a tight range, Euro has bounced off the 1.0840 level to trade session highs of 1.09361 after some US dollar weakness on Friday night. This dragged down USD/JPY pulling back it’s one month rally.
- North Korea making headlines again after carrying out another ballistic missile test over the weekend. China oppose tests, Kremlin says Putin concerned.
- Angela Merkel and her party wins the vote of North-Rhine-Westphalia over the weekend. Her party is ahead with 34.5% of the votes in Germany’s most populous state, according to an exit poll.
- Gold naturally having a small pop on this morning’s open after the concern over the weekend out of NK.
- Some major economic announcements this week include UK CPI and Retail Sales, Aussie Meeting Minutes and Employment Figures, US Crude Oil Inventories, and Canada CPI and Retail Sales.
Today’s Economic calendar (AEST)
- 8:45am NZ Retail Sales
- 12:00pm China Industrial Production
