Previously on MoreLiver’s:
Follow ‘MoreLiver’ on Twitter
EUROPE
Two Decisions from Europe – Marc
Chandler
Turkey’s visa-free
travel and 500-euro note
Paul Krugman’s Argument That The Eurozone Is Not
An Optimum Currency Area Could Easily Be Applied To The US – Social
Europe
Commission forecasts
euro area growth of 1.6% and EU growth of 1.8% in 2016. Economic growth in
Europe is expected to remain modest as key trading partners' performance has
slowed and some of the so far supportive factors start to wane. As a result,
GDP in the euro area is forecast to continue growing at modest rates over the
2015-2017 period.
REGULARS
EUR/USD above 1.15, RBA cut rates,
China PMI disappointed * Lower Danish FX reserves but no intervention? * The
EUR/USD rate broke 1.15. We are looking to the 1.1650 area now * RBA cut
benchmark rate by 25bp to 1.75%
The Reserve Bank of Australia
surprised markets by cutting its policy rate by a quarter point to a record low
1.75% on Tuesday due to lower-than-expected inflation. Asian stock markets were
mixed with Chinese shares up in the first day of trading this week after
Monday's May Day holiday and Tokyo closed for Golden Week.
Euro wrap-up –
Daiwa
Dollar Continues to Push Lower
Former Chancellors
Darling and Lawson trade blows over economic impact of Brexit * Cross party
group claims EU membership central to fighting climate change and protecting
the environment * Study shows EU migrants have higher employment rate than
Britons * EU states could face fine of €250,000 for each refugee refused * German
paper calling for more defence integration in EU to be delayed until after
UK-EU referendum * Berlin restates commitment to concluding TTIP amid reports
of concerns at the top level of the European Commission * Draghi rebukes ECB
German critics * Germany’s right-wing party adopts anti-Islamic manifesto
TTIP leaks — Polarizing
Poland
"Unexpected" Australian
Rate Cut To Record Low Unleashes FX Havoc, Global "Risk Off"
The Reserve Bank of
Australia surprised consensus overnight with a quarter-point rate cut and by
issuing dovish guidance which knocked AUD a few notches lower. Elsewhere USD
weakness is mostly within the G3 as USDJPY stretched to new lows and EURUSD to
new highs well clear of 1.1500.
With Monday trading
dampened by the UK bank holiday FX markets in Europe this morning are starting
on a sour note after the yen hit a new 18-month high the Aussie dollar was
shaken by a surprise rate cut and the US dollar index slid to a 15-month low.
FINLAND
& FINNISH
Kiinan
tehdasteollisuuden vaikeudet jatkuvat yhä * USA:n tehdasteollisuuden hidas
elpyminen jatkuu * Britannian teollisuuden ostopäällikköindeksi (PMI) pysyy
heikkona * Raaka-ainevaluutat heikentyivät eilen