Pulse of the Market
· U.S disappointing economic data released yesterday showed Empire manufacturing slipping to 11.88
· Euro Zone CPI inflation figures in line with forecasts but above the ECB’s stated target of 2.0 percent
· Cable closed almost flat against the U.S Dollar ahead of inflation data and the release of the BoE minutes
· Aussie finished the day roughly flat but volatility could pick up on the release of RBA meeting minutes
The Greenback traded slightly lower against most of the major currencies in yesterday’s trading session following mixed U.S economic data. The big story yesterday was the U.S reaching its $14 trillion debt ceiling. However based upon the price action in the currency markets, investors aren’t too worried because they believe that it will only be a matter of time before Congress will raise the government’s borrowing limit. Meanwhile U.S economic data showed the continued pulls in the U.S economy. Manufacturing activity slowed to its weakest level since the beginning of the year. The employment component though rose to its second highest level ever while the index of unfilled orders jumped significantly. Housing starts, Building permits and industrial production numbers are scheduled for release today. The Euro has been surprisingly strong regardless of the number of dark clouds hanging over the region. A common agreement has been reached for a bailout of Portugal but the real focus is on Greece who may renegotiate its terms with the EU and IMF. The European Sovereign debt crisis remains a problem for the Euro. Euro Zone economic data was better than expected with Core CPI growth accelerating in April and the seasonally adjusted trade deficit for the region narrowing. The German ZEW survey is scheduled for release today. The British Pound ended the trading session unchanged against the Greenback. House prices grew at a slower pace in April but the 1.3 percent rise drove asking prices to its highest level in nearly 3 years. Consumer prices are scheduled for release today and investors will be looking to this report to confirm the hawkish tone found in the recent Quarterly Inflation Report. The Japanese Yen ended the trading session unchanged against the U.S Dollar and slightly higher against most of the major currencies with the exception of the Euro and Swiss Franc. Japanese economic data was mixed with inflation rising according to the Corporate Goods Price index which increased 0.9 percent in April and machine orders rising by 2.9 percent. Consumer confidence on the other hand fell to its lowest level since April 2009.
Time(GMT) | Economic Release | IMP | Actual | Forecast | Prior |
01:30 | AUD Reserve Bank of Australia Meeting Minutes | High | |||
06:30 | EUR EU Finance Ministers Summit in Brussels | High | |||
08:30 | GBP Consumer Price Index (MoM) (APR) | Medium | 0.7% | 0.3% | |
08:30 | GBP DCLG UK House Prices (YoY) (MAR) | Low | 0.7% | ||
09:00 | EUR Euro-Zone ZEW Survey (Economic Sentiment) (MAY) | Medium | 17.3 | 19.7 | |
12:30 | USD Building Permits (APR) | Medium | 590K | 585K | |
12:30 | USD Housing Starts (APR) | Medium | 568K | 549K | |
23:50 | JPY Tertiary Industry Index (MoM) (MAR) | Medium | -5.8% | 0.8% |
Euro
The Single Currency rose even as yesterday’s meeting of the European Union policy makers in Brussels can result in restructuring of Greece’s debt, fueling concerns about Europe’s credit crisis. Greece wants extensions of its credit maturities, but other European countries, Germany especially, demand bigger budget cuts before providing more aid. Overall, the EUR/USD traded with a low of 1.4047 and a high of 1.4243 before closing the day around 1.4155 in the New York session.
Yen
The Japanese Yen consolidated in its recent ranges yesterday as equities and commodities fluctuated between losses and gains. While the Yen does remain an alternative for market risk sentiment, weak economic data out of the world's third largest economy has capped further gains. Japanese consumer confidence tumbled to a two year low. Overall, the USD/JPY traded with a low of 80.62 and a high of 81.05 before closing the day around 80.77 in the U.S session.
British Pound
The British Pound underperformed in the bounce, failing to track the Euro higher with EUR/GBP pushing to 0.8750. The market will be closely watching the inflation data today which is still well above the BOE inflation target. More light will be shed on tomorrow as the minutes from the last BoE meeting will be released. Overall, the GBP/USD traded with a low of 1.6159 and a high of 1.6253 before closing the day at 1.6191 in the New York session.
Canadian Dollar
The Canadian Dollar begins the week at its lowest levels in two months as the price of oil continues to fall. Bank of Canada Governor Carney delivered a speech in Ottawa yesterday where he said Canadian inflation is expected to exceed 3 percent in the short term but inflation expectations are well anchored. Overall, the USD/CAD traded with a low of 0.9682 and a high of 0.9768 before closing the day at 0.9754 in the New York session.
Australian Dollar
The Australian Dollar was volatile rallying above 1.0640 at the start of the U.S session before finding sellers and returning to weakness. The outlook for the AUD/USD will be dependent on stock markets going forward with a further correction seeing at 1.0500 come back into view. Overall the AUD/USD traded with a low of 1.0512 and a high of 1.0642 before closing the day at 1.0554 in the New York session.
Euro-Yen
EUR/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is issuing a bearish stance. The RSI is above 39 and lies below the neutral zone. Overall, the cross has gained 0.32%.
Sterling-Yen
Currently GBP/JPY is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing bullish and MACD is indicating a bearish stance. The RSI is above 39 reading and lies below the neutral zone. The pair has lost 0.03%.
Aussie-Yen
Currently, the cross is trading below 14, 50 and above 100 days moving average. Fast stochastic gives bearish and MACD is also indicating a bearish stance. The RSI is above 45 reading and lies below the neutral region. The pair has lost 0.12%.
Euro-Sterling
This cross is trading below 14, 50 and above 100 days moving average. Fast stochastic is indicating a bullish and MACD is issuing a bearish signal. The RSI is above 45 reading and lies below the neutral region. The pair has gained 0.34%.
Sterling-Swiss
This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is indicating a bullish tone. The RSI is above 42 and lies below the neutral region. The pair has lost 0.89%.
Appendix
Daily Pivot Points | |||||||
Trading Range | |||||||
Contract | S3 | S2 | S1 | Pivot | R1 | R2 | R3 |
EUR/USD | 1.4164 | 1.4246 | 1.4383 | 1.4465 | 1.4602 | 1.4684 | 1.4821 |
USD/JPY | 81.32 | 81.78 | 82.17 | 82.63 | 83.02 | 83.48 | 83.87 |
GBP/USD | 1.6212 | 1.6259 | 1.6331 | 1.6378 | 1.6450 | 1.6497 | 1.6569 |
USD/CHF | 0.8707 | 0.8791 | 0.8834 | 0.8918 | 0.8961 | 0.9045 | 0.9088 |
USD/CAD | 0.9424 | 0.9460 | 0.9491 | 0.9527 | 0.9558 | 0.9594 | 0.9625 |
EUR/JPY | 116.52 | 117.38 | 118.64 | 119.50 | 120.76 | 121.62 | 122.88 |
GBP/JPY | 133.64 | 134.15 | 134.79 | 135.30 | 135.94 | 136.45 | 137.09 |
CHF/JPY | 90.87 | 91.29 | 92.13 | 92.55 | 93.39 | 93.81 | 94.65 |
AUD/JPY | 85.68 | 86.24 | 87.34 | 87.90 | 89.00 | 89.56 | 90.66 |
EUR/GBP | 0.8696 | 0.8737 | 0.8794 | 0.8835 | 0.8892 | 0.8933 | 0.8990 |
EUR/CHF | 1.2776 | 1.2831 | 1.2862 | 1.2917 | 1.2948 | 1.3003 | 1.3034 |
GBP/CHF | 1.4386 | 1.4472 | 1.4518 | 1.4604 | 1.4650 | 1.4736 | 1.4782 |
Sources: News, Charts & Quotes (Courtesy: Reuters, US Department Of Treasury)
No comments:
Post a Comment