MARKET SUMMARY –14JUNE06 (05:00GMT)
- The Dollar continued its strength against the major currencies as core PPI rose higher than expected and retail sales came in on target. Core PPI rose 0.3% in May whereas markets expected a rise of only 0.2%. Headline PPI however rose 0.2% compared to 0.5% forecasted. Retail sales increased in line with expectations, lifting by 0.1%. In other markets, US stocks fell again as higher than expected core PPI numbers lead to interest rate fears inducing a sell-off of interest rate sensitive stocks. The Dow Jones was down 86pts, and the NASDAQ retreated 19pts. Crude oil finished lower by US$1.80 to US$68.56 a barrel. Looking ahead, US CPI numbers are out today with the market expecting 0.4% and 0.2% for the headline and core components respectively.
- The Euro traded in a range of 1.2531 to 1.2615, before closing at 1.2533 in the
New York
- The Japanese yen traded in a range of 114.26 to 115.44 versus the dollar, before closing at 115.44 in the
New York
- The Sterling traded in a range of 1.8326 to 1.8459, before closing at 1.8343 in the
New York
- The Aussie traded in a range of 0.7372 to 0.7419, before closing at 0.7372 in the
New York
- Gold plummeted by US$44.50 to US$566.80 an ounce, its biggest fall in 15 years as investors exited commodity markets amid fears of an economic slowdown. Copper closed 25% down on its high from this year, silver tumbled more than 13%, and palladium fell by 12%.
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.2403 | 1.2530 | 1.2550 | 1.2653 | 1.2686 |
| USD/JPY | 113.56 | 114.25 | 115.10 | 115.45 | 115.98 |
| GBP/USD | 1.8206 | 1.8326 | 1.8350 | 1.8486 | 1.8579 |
| AUD/USD | 0.7357 | 0.7366 | 0.7385 | 0.7505 | 0.7547 |
- Euro 1.2550
Initial support at 1.2530 (Jun 13 low) followed by 1.2403 (50% retracement of the 1.1951-1.2980 rally). Initial resistance is now located at 1.2653 (Jun 12 high) followed by 1.2686 (June 9 high).
- Yen 115.10
Initial support is located at 114.25 (June 13 low) followed by 113.56 (June 9 low). Initial resistance is now at 115.45 (Jun13 high) followed by 115.98 (April 24 high and former gap low).
- Pound – 1.8350
Initial support at 1.8326 (Jun 13 low) followed by 1.8206 (May 2 low). Initial resistance is now at 1.8486 (June 9 high) followed by 1.8579 (June 8 high).
- Aussie – 0.7385
Initial support at 0.7366 (Jun13 low) followed by 0.7357 (April 20 low 61.8% retracement of 0.7015-0.7795 rise). Initial resistance is now at 0.7505 (June 9 corrective high) followed by 0.7547 (June 5 corrective high).
