Market Roundup
- US Industrial Output MM Apr -0.3%, (consensus 0.1%, previous -0.30%)
- US Manuf Output MM Apr 0%, (consensus 0.2%, previous 0.30%)
- US U Mich Sentiment Prelim May 88.6, (consensus 96, previous 95.9)
- Today’s data adds to recent run of weakness, UST yields fall on perception of Fed delays
- Greek PM says has reached common ground on fiscal targets, optimistic close to deal with lenders
- NY Fed staff fcasts 2.5% GDP rest of ’15/16, 5% seen as natural rate of unemployment
- BOE’s Bailey says CBs as ‘market makers’ of last resort needs more study
Economic Data Ahead
- (1950 ET/ 2350 GMT) Japan Machinery Orders MM Mar (consensus 1.8%, previous -0.4%)
- (1950 ET/ 2350 GMT) Japan Machinery Orders YY Mar (consensus -7.2%, previous 5.9%)
- (2130 ET/ 0130 GMT) China House Prices YY Apr (previous -6.1%)
- (2130 ET/ 0130 GMT) Australia New Motor Veh Sales m/m Apr (previous 5%)
- (0030 ET/ 0430 GMT) Japan Ind Output Rev Mar (previous -0.3%)
- (0030 ET/ 0430 GMT) Japan Cap Util Idx Chg MM Mar (previous -3.2%)
Key Events Ahead
- (Sunday 1930 ET/ 2330 GMT) Australia RBA Dep Governor Philip Lowe speaks at the Corporate Finance Forum
FX Recap
EUR/USD: The European currency has clinched its fifth consecutive week with gains vs. the US dollar, its main source of upside being the beleaguered dollar. Today’s miserable results from Industrial Production, Capacity Utilization and the Reuters/Michigan index (in 7-month lows) added to the set of data disappointments. EUR/USD is currently trading around 1.1452, a step closer to 1.15. Resistances are located at 1.1479, 1.1508 and 1.1536, while supports are seen at 1.1375, 1.1347 and then 1.1318. Option expiries for Monday 18th May: 1.1300 (469M), 1.1450 (531M)
GBP/USD reached levels on top of 1.5800 but failed to hold on to gains. The pair retreated from the highs and found support at 1.5735. GBP/USD is hovering around 1.5735, around 300 pips above the level it closed last Friday. It is the second weekly gain in a row for the pound versus the US dollar, in which it has risen almost 4% boosted by the UK election results and a weak greenback. UK inflation data (Tue), BoE’s minutes (Wed), retail sales report (Thurs) and FOMC minutes (Wed) in focus next week.
NZD/USD: kiwi up against the US dollar during the American session but unable to climb back above 0.7500. The pair dropped during the Asian session and bottomed on European hours at 0.7428, but rebounded after the release of weak economic data from the US. During the NY session the pair peaked at 0.7494 and was trading at 0.7485/90, unchanged for the day and also for the week. Option expiries for Monday 18th May: 0.7580-85 (400M)
USD/JPY faded below the 120 handle again. Rally was short lived where supply met in the 119.90’s. The pair is currently trading at 119.31 with a high of 119.93 and a low of 119.15. Next hurdle is located in 120.82/84 area. Through 119.15, to the downside, 118.80 and 118.40 come in as next key supports. On the calendar next week, we have the FOMC Minutes on Wednesday 20th May. Option expiries for Monday 18th May: 119.00 (500M), 120.00 (793M), 121.00 (1.2BLN)
USD/MXN is falling on Friday for the fourth day in a row and is consolidating below an important short term support level located around 15.10. USD/MXN reached levels under 15.00 for the first time in a month. The peso gained momentum and pushed USD/MXN to 14.97, the lowest level since April 9. From there the pair rebounded and rose back above 15.00. Currently is trading at 15.01, down 0.53% for the week and 2.50% below the level it reached on Monday, when it peaked at 15.42.
The material has been provided by InstaForex Company – www.instaforex.com