Markets Eye NFP as Trump-Xi Call Fails to Lift Sentiment
| Action Insight Daily 6-6-25 |
Markets Eye NFP as Trump-Xi Call Fails to Lift Sentiment |
There was a fleeting uptick in sentiment overnight after US President Donald Trump spoke by phone with Chinese President Xi Jinping, calling the conversation “very positive” and announcing renewed lower-level trade talks. However, the initial optimism quickly faded, with major US indexes reversing early gains to end the session lower. The Chinese readout was more cautious, stressing that the US should “withdraw negative measures” and warning Washington to handle Taiwan “prudently.” The divergence in tone reinforces the sense that the two sides remain far apart. The agreement to more talks appears to be little more than a tactical delay rather than genuine progress. Elsewhere, US Treasury called on BoJ to continue policy tightening to support a normalization of Yen and correct bilateral trade imbalances. The statement, part of the Treasury’s semiannual currency report, suggested Tokyo had more to do on the policy front. However, Japan’s Finance Minister Katsunobu Kato offered a restrained response, reiterating that monetary decisions lie with the BOJ and avoiding direct comment on the US call for further tightening. Yen, meanwhile, barely reacted, continuing its technical consolidation as it drifts slightly lower against Dollar...... |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.3645; (P) 1.3665; (R1) 1.3694; More... Intraday bias in USD/CAD stays on the downside as decline from 1.4791 is in progress. . Next target is 61.8% projection of 1.4414 to 1.3749 from 1.4014 at 1.3603. Firm break there will pave the way to 100% projection at 1.3349. On the upside, above 1.3741 minor resistance will turn intraday bias neutral and bring consolidations first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | Overall Household Spending Y/Y Apr | -0.10% | 1.50% | 2.10% | | 05:00 | JPY | Leading Economic Index Apr P | 103.4 | 104 | 104.1 | 108.1 | | 06:00 | EUR | Germany Industrial Production M/M Apr | -0.90% | 3.00% | | 06:00 | EUR | Germany Trade Balance (EUR) Apr | 20.2B | 21.1B | | 07:00 | CHF | Foreign Currency Reserves (CHF) May | 703B | | 09:00 | EUR | GDP Q/Q Q1 F | 0.40% | 0.30% | | 09:00 | EUR | Eurozone Employment Change Q/Q Q1 F | 0.30% | 0.30% | | 09:00 | EUR | Eurozone Retail Sales M/M Apr | 0.20% | -0.10% | | 12:30 | CAD | Net Change in Employment May | -11.9K | 7.4K | | 12:30 | CAD | Unemployment Rate May | 7.00% | 6.90% | | 12:30 | USD | Nonfarm Payrolls May | 130K | 177K | | 12:30 | USD | Unemployment Rate May | 4.20% | 4.20% | | 12:30 | USD | Average Hourly Earnings M/M May | 0.30% | 0.20% |
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