U.S. Dollar Trading (US) the negativity accelerated around the world with Protests in Greece turning Violent and the Greek PM offering to resign. US Stocks fell aggressively and US Data stunned to the downside. June NY FED dropped to -8 vs. 12 previously. In US stocks, DJIA -178 points closing at 11897, S&P -22 points closing at 1265 and NASDAQ -47 points closing at 2631. Looking ahead, Weekly Jobless Claims forecast at 420k vs. 427k previously. Also released, May Philly Fed forecast at 6.8 vs. 3.9 previously.
The Euro (EUR) the riots in Greece combined with news Moody's placed three major French Banks for possible downgrade review. Support at 1.4400 broke quickly and the pair continued to plummet to fresh month lows under 1.4200. April Industrial Production rose 0.2% m/m as expected. Overall the EUR/USD traded with a low of 1.4155 and a high of 1.4439 before closing the day around 1.4190 in the New York session. Looking ahead, May CPI forecast at 2.6% vs. 2.6% previously m/m.
The Japanese Yen (JPY) the major moved higher as the USD outperformed on safe have flows. The yen did strengthen against risk currencies though with EUR/JPY breaking below the key Y115 level and NZD/JPY sharply back to Y65. Overall the USD/JPY traded with a low of 80.37 and a high of 81.07 before closing the day around 80.90 in the New York session.
The Sterling (GBP) was under heavy pressure on risk aversion and weak May Jobs data. UK May Claimant Count at +19.6k vs. 7k expected. EUR/GBP broke lower and this did provide support for Cable which found a base under 1.6200. Overall the GBP/USD traded with a low of 1.6168 and a high of 1.6379 before closing the day at 1.6190 in the New York session. Looking ahead, May Retail Sales forecast at -0.6% vs. 1.1% previously.
The Australian Dollar (AUD) was very strong in the Asian session when RBA governor spoke hawkishly about the chance of rate hikes if the July CPI data was above the bank's target rate. This was reversed in the stock slump and Euro crash later in the day but losses were limited so far. AUD/NZD fared better rallying on weak milk prices. Overall the AUD/USD traded with a low of 1.0534 and a high of 1.0716 before closing the day at 1.0575 in the New York session.
Oil & Gold (XAU) was well supported on sovereign default fears testing above $1530. Overall trading with a low of USD$1513 and high of USD $1535 before ending the New York session at USD$1529 an ounce. Oil crash breaking key support at $98 and continuing to test $95 by the end of the day. WTI Oil Closed -4.30 at $95.30 a barrel.
|Currency||Sup 2||Sup 1||Spot||Res 1||Res 2|
Euro - 1.4190
Initial support at 1.4142 (76.4% retrace of 1.3970-1.4697) followed by 1.4068 (May 26 low). Initial resistance is now located at 1.4248 (Jun 15 high) followed by 1.4500 (Psychological Resistance)
Yen - 80.90
Initial support is located at 79.57 (May 5 low) followed by 78.83 (Mar 18 low). Initial resistance is now at 81.01 (Jun 3 high) followed by 81.33 (Jun 2 high).
Pound - 1.6210
Initial support at 1.6173 (76.4% retrace of 1.6058-1.6547) followed by 1.6132 (May 25 low). Initial resistance is now at 1.6383 (Jun 15 high) followed by 1.6496 (Jun 1 high).
Australian Dollar - 1.0575
Initial support at 1.0510 (May 26 low) followed by the 1.0440 (May 25 low). Initial resistance is now at 1.0726 (Jun 8 high) followed by 1.0877 (76.4% retrace of 1.1012-1.0441).
Gold - 1526
Initial support at 1513 (May 24 low) followed by 1504 (May 23 low). Initial resistance is now at 1545 (June 6 high) followed by 1577 (All time high).
Oil - 95.30
Initial support at 95.00 (Intraday Support) followed by 94.30 (Intraday Support). Initial resistance is now at 98.00 (Intraday resistance) followed by 100.00 (Intraday Resistance).
Written by Anthony Darvall