A deluge of data could bring volatility

May 31, 2018

A significant amount of data emanating from around the world could bring some more volatility to markets.

The euro went off to the races as it shook off the trouble surrounding Italy that has dogged the currency for the last few days. The EUR/USD opened at $1.15401 and dipped to lows of $1.15173 early. From that point on however, it took flight as it surged to a high of $1.16763. It has come off those highs slightly, currently trading at $1.16655. The pound also added some value, albeit nowhere near to the same degree as the euro. The GBP/USD opened at $1.32570 before dropping to an early low of $1.32406. It trended upwards from that point as it climbed steadily to a high of $1.33063. It has come back off those highs to be currently trading at $1.32839.

The Dow performed quite well last night, despite there being no change to the turmoil in Italy which was the reason given for a 500-point drop in the Dow the day before. The Dow opened at 24,325.18 and reached a low of 24,309.13 early. It climbed for most of the session, peaking at 24,706.96. It has come of those highs and is sitting at 24,619.90 in early morning trading. The Dax is another one that performed well, breaking out and taking advantage of a multi-month low euro. It was also helped by a rallying Dow. The Dax reached lows of 12,635.00 during its opening hour of trade. It was mainly positive moves from that point as it eventually hit highs of 12,827.30. It closed the session at 12,801.80.

The day ahead is jam-packed full of data, which could bring with it some volatility. Events away from data announcements could also have a bearing on market direction. The turmoil in Italy continues and trade deals & tariffs still linger in the background. Data set for release today includes:

Japan – Housing Starts

NZ – ANZ Business Confidence, Overseas Trade Index

China – Manufacturing & Non-Manufacturing PMI

Canada – GDP, BoC Governing Council Member Sylvain Leduc speaks

Australia – Private Capital Expenditure, Private Sector Credit, AIG Manufacturing Index

UK – Net Lending to Individuals, M4 Money Supply, Nationwide HPI, Mortgage Approvals

Europe – Swiss GDP & Retail Sales, French & Italian Prelim CPI, European CPI & Core CPI Flash Estimate, European Unemployment Rate, SNB Governing Board Member Fritz Zurbrugg speaks

US – Challenger Job Cuts, Core PCE Price Index, Personal Spending, Unemployment Claims, Personal Income, Chicago PMI, Pending Home Sales, Natural Gas Storage, Crude Oil Inventories, FOMC Members Raphael Bostic & Lael Brainard speak


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