USD is the weakest G10 currency so far today but the currency moves have been limited so far. GBP is the strongest currency this week and chances are of a further upside as the UK CPI beat on Tuesday has raised expectations of a potentially hawkish BoE on Thursday. JPY continues to remain the weakest G10 currency this week as US and EU yields recover. In the equities space, the Nikkei 225 has closed +0.45% at 19865.82 but the European equities have opened lower with FTSE down 0.3%, DAX down 0.3%, and CAC down 0.1%. In the rates market, the German and US 10-year yields continue to rise fuelled by improving risk sentiments. The US and German 10-year are now trading at 2.16% and 0.39%, respectively. In the energy space, the WTI front month has weakened from Yesterday’s high of $49.0 to $48.16 as API weekly crude stock data showed second consecutive build up in inventory (6.181M actual vs. 2.91M expected). The key release for oil traders remain the EIA crude stock data at 1430 GMT where a build up of 3.238M barrels is expected.
In terms of data so far, the Australian Westpac consumer confidence improved by 2.5% and the Euro-area Q2 employment change also came in strong at 0.4% vs. 0.3% expected. Elsewhere, Swedish Q2 GDP (Final) was revised down from 1.7% to 1.3% and this has led to some SEK weakness. Looking ahead the UK employment report at 0830 GMT and Euro-area industrial production at 0900 GMT are the key data releases from Europe today while US PPI data at 1230 GMT is the only data of any significance from the US.
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