Last week’s currency trading review
The Dollar managed to stall the recent losses against the Euro but lost more ground against riskier currencies as stock markets tested highs around the world. The break above 10000 on the Nikkei helped most Yen crosses to test fresh year highs. US retail sales were at expectations of 0.5% in May. Also June Consumer Sentiment increased to 69 vs. 68.7 previously. Oil broke above $70 a barrel for the first time this year. The Euro couldn’t muster fresh gains this week as the USD received broad support from its status as reserve currency around the world. Multiple Finance minister have offered there support both for the USD and US bonds in the past week. Industrial Production (April) dropped 1.9% vs. -1.4% previously. The EUR/USD gained 0.33% closing at 1.4016, after opening the week at 1.3970.
The Japanese Yen couldn’t break past 99 Yen but did mange new highs on the AUD/JPY and GBP/JPY as the carry trade roared back on commodity gains. Final Q1 GDP was upgraded to -3.8%. The GBP rebounded well after Political concerns faded. EUR/GBP traded at fresh year lows. Manufacturing Production gained 0.2% vs. -0.1% forecast.GBP/USD gained 2.82% closing at 1.6442 after opening at 1.5978. The AUD surged ahead as Unemployment numbers of -1.7K beat forecasts of -30k and commodities rallied. Consumer Confidence surged the most in 22 years up 12.7%. The AUD/USD closed up 2.36% at 0.8122 after opening at 0.7930.
The forex trading week preview
In the States on Monday, TIC Flows (April) previously at 23.2BN. On Tuesday, PPI (May) forecast at 0.6% m/m. Also released, May Housing starts are forecast at 485K whilst building permits (May) is forecast at 500K. May Industrial Production is forecast at -0.9% vs. -0.5% previously. On Wednesday CPI (May) are forecast at -0.9% vs. -0.7%. On Thursday, weekly Jobless Claims are forecast at 610K vs. 601K previously. We will provide our previews and reviews of these data releases in the daily summary.
In the Eurozone On Tuesday, German Zew Survey forecast at 35 vs. 31 previously. On Wednesday, Trade Balance is forecast at -1.5Bn in April. On Friday, German PPI (May) is forecast flat vs. -1.4% previously m/m. In the UK On Tuesday, CPI (May) is forecast at 2.0% y/y vs. 2.3% previously. On Wednesday, BOE minutes released along with ILO Unemployment Rate (April) forecast at 7.35 vs. 7.1% previously. On Thursday, Retail Sales (May) forecast at 0.3% vs. 0.95 previously. We will provide our previews and reviews of these data releases in the daily summary.
In Japan On Tuesday, BOJ meet and are forecast to hold at 0.1%.On Friday, BOJ minutes form the meeting released. We will provide our previews and reviews of these data releases in the daily summary.
In Australia RBA minutes on Tuesday the highlight. We will provide our previews and reviews of these data releases in the daily summary.
|
Currency |
Sup 2 |
Sup 1 |
Spot |
Res 1 |
Res 2 |
|
EUR/USD |
1.3728 |
1.3793 |
1.3970 |
1.4178 |
1.4267 |
|
USD/JPY |
96.52 |
97.09 |
98.15 |
98.89 |
99.74 |
|
GBP/USD |
1.6041 |
1.6242 |
1.6380 |
1.6662 |
1.6739 |
|
AUD/USD |
0.7828 |
0.7968 |
0.8075 |
0.8263 |
0.8378 |
|
XAU/USD |
925.00 |
936.00 |
937.00 |
965.00 |
983.00 |
Euro – 1.3970
Initial support at 1.3793 (May 28 low) followed by 1.3728 (May 21 low). Initial resistance is now located at 1.4178 (Jun 11 high) followed by 1.4267 (Jun 5 high)
Yen – 98.15
Initial support is located at 97.09 (Jun 5 low) followed by 96.52 (Jun 2 low). Initial resistance is now at 98.89 (May 7 high) followed by 99.74 (April 13 high).
Pound – 1.6380
Initial support at 1.6242 (Jun 10 low) followed by 1.6041 (Nov 6 low). Initial resistance is now at 1.6662 (Jun 3 high) followed by 1.6739 (61.8% retrace).
Australian Dollar – 0.8075
Initial support at 0.7968 (Jun 8 low) followed by the 0.7828 (Jun 10 low). Initial resistance is now at 0.8263 (Jun 3 high) followed by 0.8378 (Sept 26 high).
Gold – 937
Initial support at 936 (May 21 low) followed by 925 (May 20 low). Initial resistance is now at 965 (Jun 5 high) followed by 983 (June 3 high).
