Commodities were in focus today after higher imports data from China. Oil went to 51$ while waiting for the DoE report and oscillated there seeing a mixed picture. Europe was in the red, but US equities gained. USD and GBP saw supportive data, but the market sentiment towards them remained negative.
May’s Chinese trade data from the morning with imports moving from a fall exceeding 10% previously to only -0.4% YoY sparked large gains on the commodity markets. Gold added 10$ to the 1250 which it reached by noon, while silver gained 3.9% on the day.
Crude reached 51$/bbl while waiting for the confirmation of good API numbers by the DoE report. This did happen (stocks fell 3,23mb last week) but there were also signs of declining demand for refinery products and their much bigger than expected stock increases. also, we could see the first rise of US oil output since March.
The US JOLTs April figure moved back to the record from July last year and was the fourth positive surprise in a row. And yet USD continued to lose today.
The UK also had good data - Industrial output, which increased by 2% MoM in April (the highest monthly growth in 4 years), but it clashed with the poor PMI reading (the weakest in 2016 so far) . GBP is to close to the referendum to be able to gain on positive readings and ended the day as the worst G-10 performer.
RBNZ decision will come in half an hour, with new projections and markets expecting no change to rates.
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