U.S. Dollar Trading (US) stock markets rallied for the first time in seven sessions with bargain hunters entering the market. April Trade Balance improved sharply to -43.7bn vs. -48bn forecast. Weekly Jobless Claims at 427k vs. 426k previously. In US stocks, DJIA +75 points closing at 12124, S&P +9 points closing at 1289 and NASDAQ +9 points closing at 2684. Looking ahead, May Fed Budget forecast at -140 vs. -40bn previously.
The Euro (EUR) the market initially went higher after the strong vigilance comments from Trichet signaled the ECB would be raising rates in July. The EUR/USD reversed aggressively when the rest of the comments from Trichet were very dovish and concerns about Greece debt kept pressure on to the downside. Overall the EUR/USD traded with a low of 1.4476 and a high of 1.4654 before closing the day around 1.4534 in the New York session. Looking ahead, May German WPI forecast at -0.3% vs. 0.2%.
The Japanese Yen (JPY) USD/JPY rallied gentle on the back of the dollar strength but EUR/JPY slumped with major. The next move is largely depends on whether stocks markets and Yen crosses can rally from the recent pull back. Overall the USD/JPY traded with a low of 79.82 and a high of 80.48 before closing the day around 90.30 in the New York session. UPDATE Chinese Trade Balance at 13.1bn vs. 11.4bn previously.
The Sterling (GBP) was able to regain ground against the Euro but was under pressure against the resurgent Dollar. Cable found support at 1.6360 after first testing 1.6470. The Bank of England held at 0.5% as widely forecast. Overall the GBP/USD traded with a low of 1.6356 and a high of 1.6468 before closing the day at 1.6360 in the New York session. Looking ahead, April Industrial Output forecast at 0.1% vs. 0.3% previously.
The Australian Dollar (AUD) weak Jobs data hurt the Aussie sentiment with the market unable to take full advantage of the risk rally in stocks. May Employment Change was +7.8k vs. +25.4k forecast. The Unemployment remained at 4.9%. Overall the AUD/USD traded with a low of 1.0561 and a high of 1.0664 before closing the day at 1.0620 in the New York session.
Oil & Gold (XAU) retested $1550 but failed to break above the key resistance for a third time in recent sessions. Overall trading with a low of USD$1533 and high of USD $1549 before ending the New York session at USD$1544 an ounce. Was well supported grinding higher on the OPEC disagreement news. WTI Oil Closed +1.19 at $101.93 a barrel.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.4520
Initial support at 1.4451 (Jun 3 low) followed by 1.4308 (Jun 2 low). Initial resistance is now located at 1.4711 (76.4% retrace of 1.4940-1.3970) followed by 1.4800 (big figure resistance)
Yen - 80.15
Initial support is located at 79.57 (May 5 low) followed by 78.83 (Mar 18 low). Initial resistance is now at 80.40 (Jun 6 high) followed by 81.33 (Jun 2 high).
Pound - 1.6340
Initial support at 1.6286 (May 26 low) followed by 1.6132 (May 25 low). Initial resistance is now at 1.6496 (Jun 1 high) followed by 1.6547 (May 31 high).
Australian Dollar - 1.0610
Initial support at 1.0510 (May 26 low) followed by the 1.0440 (May 25 low). Initial resistance is now at 1.0758 (May 31 high) followed by 1.0877 (76.4% retrace of 1.1012-1.0441).
Gold - 1543
Initial support at 1524 (Jun 3 low) followed by 1504 (May 23 low). Initial resistance is now at 1553 (June 6 high) followed by 1577 (All time high).
Oil - 101.90
Initial support at 100.00 (Intraday Support) followed by 98.00 (Intraday Support). Initial resistance is now at 103.00 (Intraday resistance) followed by 105.00 (Intraday Resistance).
Written by Anthony Darvall