US Memorial Day keeps Monday Quiet
CURRENCY TRADING SUMMARY – 26th May (00:30GMT)
U.S. Dollar Trading (USD) finished the day broadly unchanged as holidays in the UK and USA kept volume low. Some action was seen in Asia as news of a Nuclear test from North Korea caused risk aversion to notch higher. Gains were short-lived though as the market rebounded off post test lows. Crude Oil finished down $0.50 to finish the day at $61.20 a barrel. In US share markets, the Nasdaq was down 3 points or -0.19% and the Dow Jones was down -14 points or -0.18%. Looking ahead, May Consumer Confidence is forecast at 42 vs. 39.2 previously.
The Euro (EUR) orbited 1.4000 during the day with profit taking and risk aversion failing to make a lasting impact on the pair. USD weakness has allowed a resurgent Euro to make substantial gains over the last week. May German IFO Business Climate was at 84.2 vs. 85.5 forecast. Overall the EUR/USD traded with a low of 1.3957 and a high of 1.4048 before closing at 1.4015. Looking ahead, March Industrial Orders are forecast at 0.8% vs. -0.6% previously.
The Japanese Yen (JPY) surged back over 95 on the back of the North Korea news before easing as USD strength waned into the close. Recent Yen strength has started to concern Japanese officials who are acutely aware of the currency’s affect on exports. Overall the USDJPY traded with a low of 94.41 and a high of 95.23 before closing the day around 94.85 in the New York session. Looking ahead, April Trade Balance is forecast at -57.5bn vs. 11bn previously.
The Sterling (GBP) was little changed with the market recovering from Asian losses during a quiet day of trade. Reports that China FX managers were ‘negative’ on the Pound did little to dent the bullish tone the pair has recently developed. Overall the GBP/USD traded with a low of 1.5833 and a high of 1.5941 before closing the day at 1.5920 in the New York session.
The Australian Dollar (AUD) was whacked lower by the knee jerk reaction to news of a North Korean Nuclear Test before reclaiming and comfortable holding onto the 0.7800 level for the rest of the day. Further gains for the Aussie will rely upon the equities direction. Overall the AUD/USD traded with a low of 0.7772 and a high of 0.7846 before closing the US session at 0.7820.
Gold (XAU) finished slightly higher but below the $960 resistance. Overall trading with a low of USD$952 and high of USD$960 before ending the New York session at USD$958 an ounce.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.3728 |
1.3890 |
1.4015 |
1.4058 |
1.4148 |
|
USD/JPY |
92.52 |
93.54 |
94.85 |
96.70 |
97.84 |
|
GBP/USD |
1.5450 |
1.5576 |
1.5915 |
1.6198 |
1.6464 |
|
AUD/USD |
0.7451 |
0.7630 |
0.7820 |
0.7929 |
0.8097 |
|
XAU/USD |
925.00 |
936.00 |
959.00 |
967.00 |
978.00 |
Euro – 1.4015
Initial support at 1.3890 (May 22 low) followed by 1.3728 (May 21 low). Initial resistance is now located at 1.4058 (Jan 2 high) followed by 1.4148 (Dec 31 high)
Yen – 94.85
Initial support is located at 93.54 (Mar 19 low) followed by 92.52 (Mar 19 low). Initial resistance is now at 96.70 (May 19 high) followed by 97.84 (May 12 high).
Pound – 1.5915
Initial support at 1.5576 (23.6% retrace 1.4398 to 1.5944) followed by 1.5450 (May 21 low). Initial resistance is now at 1.6198 (Nov 5 high) followed by 1.6464 (Oct 31 high).
Australian Dollar – 0.7820
Initial support at 0.7630 (May 19 low) followed by the 0.7451 (May 18 low). Initial resistance is now at 0.7929 (50% retracement of 0.9847-0.6012 decline) followed by 0.8097 (Sep 30 high).
Gold – 959
Initial support at 936 (May 21 low) followed by 925 (May 20 low). Initial resistance is now at 967 (Mar 20 high) followed by 978 (Feb 25 high).
