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The USD is mixed As the North American session begins, the NZD is the strongest of the majors while the, EUR (after the near -18% decline industrial production in Germany) is the weakest. The USD is mixed to start the week with gains vs the EUR, GBP and CHF and declines vs the JPY, CAD, AUD and NZD.  

WSJ report on rate caps The move up in 10-year US rates last week was a watershed for the broader risk trade but the Fed might not like to see too much steepening.

The Fed has executed the pump; watch out for the dump The Federal Reserve decision is on June 10 and it's shaping up to be a bigger event than anticipated a week ago because of surprising strength in jobs and equity markets.

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Gap trading   A gap is when a 'gap' or a 'space' is seen on a price chart. For example, look at the chart below and you can see that there is an empty space where price has 'gapped' over the weekend on the AUDJPY pair in early March. This is called a gap. 

<p>Germany industrial production plunged -17.9% mom in April, worse than expectation of -15.5% mom. That’s also a record decline, due to coronavirus pandemic and responding containment measures. Looking at some details, intermediate goods dropped -13.8% mom. Consumer goods dropped -8.7%. Capital goods dropped -35.5%. Automotive dropped

<p>Eurozone Sentix Investor Confidence improved to -24.8 in June. That’s the second straight month of rebound, from April’s -42.9 then May’s -41.8. Current situation index rose from -73.0 to -61.5. Expectations index jumped from -3.0 to 21.8, turned positive, and hit the highest level since November 2017. Sentix questioned:

<p>Japan Economy Minister Yasutoshi Nishimura said in the an interview that it’s “premature to consider fiscal, monetary steps aimed at stimulating consumption as Japan is still focusing on containing coronavirus pandemic.” And, ‘what’s most important now is to protect jobs and help businesses survive the pandemi

<p>Japan GDP contraction was finalized at -0.6% qoq in Q1, better than earlier estimate of -0.9% qoq, marginally missed expectation of -0.5% qoq. In annualized term, GDP contracted -2.2%, revised up from -3.4%. The upward revision was largely thanks to capital expenditure, which rose 1.9% qoq, reversing from a preliminary -0.5% qoq decline. T

<p>In May, in US term, China’s exports dropped -3.3% yoy to USD 206.8B, better than expectation of -7.0% mom decline. Imports dropped -16.7% yoy to USD 143.9B, worst than expectation of -9.7% yoy. Trade surplus widened to USD 62.9B, up from USD 45.3B. That’s also a record monthly trade surplus, with much help from decline [&hellip