5/31/2021 10:18:36 AM GMT
Notes/Observations
- CPI reading from Spain and Germany saw the YoY above ECB target level.
- Various German States saw their May inflation data registered its biggest increase since fall 2018 mainly due to the base effect from higher energy prices.
- China PBoC takes action to curb recent CNY currency strength.
- US and UK markets closed for holidays.
Asia:
- China May Manufacturing PMI (Govt Official) registered its 14th month of expansion (51.0 v 51.1e).
- China PBOC sets the Yuan reference rate at 6.3682 for its strongest fixing since mid-May 2018).
- Former China PBOC official Sheng Songcheng said fast yuan appreciation probably will not last, suggests the Yuan is overbought ; says the rise in CNY suggests short-term speculation.
Deficit to -USD 85.2 billion, from a previous -
USD 92.0 billion. US Personal Income in May was at
-13.1%, beating median forecasts at -14.2%. Chicago’s PMI rose
to 75.2 from
67.9.
EUR/USD – The Euro initially slid to an overnight low at 1.21326 in early trade following the release of the US PCE inflation report. Other US economic reports were mixed and saw the single currency rally to close at 1.2190, near its overnight high but little changed from Friday’s 1.2197.
GBP/USD – Sterling, like the Euro dipped to 1.41361 overnight low before lifting toward the close of trade to a 1.4190 finish, from 1.4200 in early Friday. The Pound, like the Euro closed near its overnight peak (1.42056).
There may be signs of overshooting in the yuan s exchange rate, and the rapid appreciation of the Chinese currency is unsustainable and could hurt Chinese exporters, a former central bank official warned on Sunday.
© Provided by Xinhua BEIJING, May 30 (Xinhua) The rapid appreciation of the RMB is unsustainable, and also not in line with the domestic and interna