Daily FX Update, 01 June 2016

v  US consumer spending climbs at the fastest pace since Aug 2009; home prices jump v  US consumer confidence lowest since Nov 2015; regional manufacturing surveys slip v  Euro area inflation remains negative in May v  German unemployment rate falls to record low v  DOSM: Business performance to slow down in 2Q2016

OVERNIGHT MARKET UPDATE: ·         US – The personal spending advanced1.0% in April from a month earlier, the biggest one-month jump since August 2009. The personal income also showed steady growth of 0.4% m/m. ·         US – The S&P/Case-Shiller home price index rose 5.2% on annual basis in March, slightly less than a 5.3% increase in February, driven in part by limited inventory. ·         US – The consumer confidence index dropped to 92.6 in May, the lowest since late 2015 as Americans turned slightly more pessimistic about overall business conditions and the job market. ·         US – The Chicago PMI dipped below 50 in May at 49.3, with both production and new orders down. The Dallas Fed manufacturing outlook also weakened at a fastest pace of -20.8. The weakness was broad-based with the down in production and new orders. ·         Euro area – The flash CPI fell by 0.1% in May, matching economists’ forecasts. Core inflation rebounded slightly to 0.8% y/y. ·         Euro area – German unemployment declined 11,000 to 2.695 million in May, the lowest level since reunification. ·         Currencies – GBP was the largest mover overnight, falling as polls showed gains for the ‘Leave’ campaign. USD was also under pressure as regional manufacturing surveys underperformed and consumer confidence fell.    ·         Equities – US bourses ended mostly lower as investors turned cautious on the last trading day of the month and ahead of key economic data releases this week. ·         Rates – 2-year UST benchmark yield touched its highest level in two months before the yield plunged to end lower as manufacturing and sentiment data disappointed. ·         Energy – Crude oil prices flirted once more with the US$50/barrel level as traders continue to await this week’s OPEC meeting in Vienna. ·         Precious Metals – Gold prices lifted for the first time in ten days as the market chose to focus on the weaker side of US data.

INDICATIVE MAJOR CURRENCIES Last Close 8.02 am Snapshot Expected Range for Today Bid Offer Low High USD/MYR 4.1287 4.1030 4.1390 4.1010 4.1460 JPY/MYR 3.7303 3.7090 3.7460 3.7000 3.7700 SGD/MYR 2.9992 2.9740 3.0100 2.9700 3.0300 EUR/MYR 4.5990 4.5700 4.6080 4.5400 4.6400 AUD/MYR 2.9867 2.9650 3.0010 2.9500 3.0200 GBP/MYR 5.9928 5.9480 5.9880 5.9200 6.0400 USD/JPY 110.68 110.36 110.77 109.96 110.96 EUR/USD 1.1139 1.0980 1.1290 1.1080 1.1190 AUD/USD 0.7234 0.7080 0.7390 0.7190 0.7290 Source: Bloomberg, AmBank