POLAND: Junior Coalition Party PSL Pledges Support In Confidence Vote
Jun-04 09:57
Senior officials from the centre-right, agrarian Polish People's Party (PSL) said that their lawmakers will vote with the government in the confidence vote next week, despite growing criticism of Prime Minister Donald Tusk from some of his coalition partners.
- Party leader and Deputy Prime Minister Władysław Kosiniak-Kamysz told reporters that PSL wants the ruling coalition to continue but talks will be held to establish a new strategy for the economy and improve the government's communication.
- Caucus leader Piotr Zgorzelski earlier said that all PSL parliamentarians will vote in favour of the confidence motion proposed by the Prime Minister to form a united front and move forward.
- Lawmakers from Sejm Marshal Szymon Hołownia's Poland 2050 (P2050) have been more openly critical of the government's condition. As a reminder, P2050 forms a loose coalition with PSL under the name of the 'Third Way'.
- P2050 MP Norbert Pietrykowski told wPolsce24 that he was 'in favour of a no confidence motion, because I think that the government must change (...) It's not about making a revolution. It's about making an evolution. (...)'
- He later clarified his remarks in an interview with Onet, saying that he was in favour of a confidence motion but believes that a deep reshuffle of the current administration is urgently needed.
- P2050 Senator Michał Kamiński and PSL MP Marek Sawicki both openly called for Prime Minister Donald Tusk's resignation, with Sawicki going as far as to propose that the coalition should table a constructive no-confidence motion.
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OUTLOOK: Price Signal Summary - EUROSTOXX 50 Bull Cycle Remains In Play
May-05 09:56
- In the equity space, the latest recovery in S&P E-Minis reinforces current bullish conditions. The contract has traded through the 50-day EMA, at 5620.87. A continuation of the bull phase would expose 5837.25 next, the Mar 25 high and a bull trigger. It is still possible that the entire rally since Apr 7 is a correction. A reversal lower would signal the end of this corrective phase and expose initially, support at 5127.25, the Apr 21 low. First support lies at 5511.99, the 20-day EMA.
- EUROSTOXX 50 futures maintain a positive tone and Friday’s rally strengthens the current bull cycle. The contract has cleared both the 20- and 50-day EMAs, and attention is on 5263.01, the 76.4% retracement of the Mar 3 - Apr 7 bear leg. Clearance of this level would pave the way for a climb towards 5341.00, the Mar 27 high. Initial support to watch lies at 5047.80, the 20-day EMA. A breach of this level would signal a possible reversal.
SWITZERLAND DATA: CPI Details Point Towards Travel-Related Svcs; Overall Soft
May-05 09:53
Looking at the details of the April Swiss CPI print indicates that while the overall decline does appear broad-based, volatile travel-related services did have a particularly negative impact this time.
- While some of that might have the potential to reverse next time, the print remains soft - markets now price about a 1/4 chance of an outsized 50bp cut to -0.25% at the next SNB meeting in June, and EURCHF has seen some strength following the release, printing 0.9362 at typing. Initial resistance for the cross should stand at 0.9438, the April 28 high.
- Contribution to headline of travel-related services (airfares, hotels, package holidays, rental cars) was 0.145pp lower this time than in March - explaining the overall services contribution drop in full (see table).
- That appears a little surprising as in the Eurozone, national-level data released last week indicated that travel-related items were particularly firm in April this time amid the so-called Easter Effect - we might have expected some correlation there. One notable caveat here is that the Swiss M/M HICP print (which is being produced using standardized European methodology) was 0.7% - much higher than the 0.0% M/M CPI (which is the one the SNB focuses on).
CROSS ASSET: The Dollar falls, Gold firms above $3,300.00
May-05 09:41
- Some downside continuation for the Dollar, testing intraday lows against the AUD, NOK, CZK, SGD, ZAR, GBP, JPY, and {o4} Gold has broken back above $3,300.00.
- AUDUSD is looking to break above 0.6500 ahead of the next resistance at 0.6528 High Nov 29 ‘24.
- USDJPY is eyeing 143.73, this was Friday's printed low.
