CURRENCY TRADING SUMMARY –20 JUNE 2007 (00:30GMT)
- U.S. Dollar Trading (USD) eased against a basket of majors as housing starts fell to 1.474 mio for the month of May from the previous 1.506 which was revised lower. The dollar also continued to slide on the back US Bond Yields retreating from the from the five year highs seen last week. In
U.S.
- The Euro (EUR) was weighed upon by the disappointment of June’s German ZEW survey which came in at 20.3 down from the previous 24 (Forecast: 29). In other news the Euro also fell from a record peak against the Japanese Yen of 166.12. Overall the EURUSD traded with a range of a low 1.3384 and a high of 1.3437 before closing the day at 1.3423 in the
New York
- The Japanese Yen (JPY) was relieved of some of it pressures late in Tuesday’s session, as USDJPY fell 0.2% on the back of US bonds easing from their five year highs, diminishing their appeal to foreign investors. Despite the JPY slight rally, markets remained positioned against the currency, as investors continued to borrow it at low Japanese interest rates in order to buy higher-yielding currencies. Overall the USDJPY traded with a range of a low 123.32 and a high of 123.73 before closing at 123.37 in the
New York
- The Sterling (GBP) continued to be a lucrative option for high yielding carry trades, as the GBPJPY cross touched a fresh 15 year high for the third consecutive day, and edged up 0.2% against the USD. Overall the GBPUSD traded with a range of a low 1.9828 and a high of 1.9889 before closing the day at 1.9887 in the
New York
- The Australian Dollar (AUD) was well supported through out the session although largely range bound ahead of poor
US New York
- The Canadian Dollar (CAD) was higher against the US dollar as the market concluded a slower pace of domestic core inflation wouldn’t keep the BoC from raising interest rates next month. Overall the USDCAD traded with a low 1.0619 and a high of 1.0721 before closing the day at 1.0629 in the
New York
- Gold (XAU) rose by US$0.20 an ounce to US$660.20 in response to higher oil prices.
TECHNICAL COMMENTARY
| Currency | Sup 2 | Sup 1 | Spot | Res 1 | Res 2 |
| EUR/USD | 1.3305 | 1.3375 | 1.3430 | 1.3444 | 1.3514 |
| USD/JPY | 122.54 | 122.86 | 123.40 | 123.77 | 124.06 |
| GBP/USD | 1.9753 | 1.9824 | 1.9880 | 1.9890 | 1.9945 |
| AUD/USD | 0.8284 | 0.8333 | 0.8465 | 0.8479 | 0.8500 |
| XAU/USD | 650.20 | 655.34 | 660.60 | 659.45 | 661.65 |
- Euro 1.3430
Initial support at 1.3375 (June 18 low) followed by 1.3305 (Jun 15 low). Initial resistance is now located at 1.3444 (61.8% retracement of the 1.3556 to 1.6262 decline) followed by 1.3514 (June 7 high)
- Yen 123.40
Initial support is located at 122.86 (June 15 low) followed by 122.54 (Jun 14 low). Initial resistance is now at 123.77 (June 18 high) followed by 124.06 (Mid Dec 2002 high)
- Pound – 1.9880
Initial support at 1.9824 (June 19 low) followed by 1.9753 (Jun 18 low). Initial resistance is now at 1.9890 (June 19 high) followed by 1.9945 (June 7 reaction high)
- Australian Dollar – 0.8465
Initial support a 0.8333 (June 14 low) followed by 0.8284 (61.8% retracement of the 0.8163 to 0.8479 advance). Initial resistance is now at 0.8479 (Jun 7 trend high) followed by 0.8500 (Psychological round number)
- Gold – 660.60
Initial support at 655.34 (June 18 low) followed by 650.2 (June 15 low). Initial resistance is now at 659.45 (June 18 high) followed by 661.65 (June 8 high)
