Themes

· General mood is “risk off”

· U.S. markets closed tonight for Memorial Day holiday

· Very quiet forex session in Asia today

What’s Moving

A very quiet session in Asia today, with the market holding tight ranges after the weekend and ahead of today’s U.S. holiday (Memorial Day). The market tends to get quite tetchy when the U.S. has a three-day weekend.

Early trading saw small buying of USD/JPY and AUD/USD and sales of USD/CAD, although ranges remained tight.

RBNZ Chief economic Conway hit the tapes this morning noting that the RBNZ didn’t seriously consider a 75bp hike at the last meeting and that he expects local inflation to fall in the second half of 2022.

Tonight, with little major data on show in Europe and amid a U.S. holiday, expect tight ranges to continue.

Data tonight sees:

· German Import Prices (E: 2.1%)

· German Preliminary CPI (E: +0.5%)

· Spanish Flash CPI (E: 8.4%)