- EUR/USD hits 1.1380 highs, 5.2% above May 27 significant low.
- Greece Finance minister- No reasons what so ever to hold snap elections.
- Greece PM- Greece to repay IMF E300mln loan tranche Friday.
- UK May Halifax house price index +8.6% 3mth/yy vs 8.5% previous, 8.5% expected.
- France Q1 ILO Jobless rate 10.3% vs 10.4% previous.
- Germany says fighting in Eastern Ukraine “worrying”.
- Russia’s Lavro – Kiev constantly putting Minsk peace deal under threat.
- Russian CB may intervene more often to avoid risk of instability.
- Shanghai composite index closes at fresh 7-year high, extreme swings seen.
- BOJ’s Harada (new member) – Excessive Yen strength has now been corrected.
- Kuroda Positive attitude/conviction, new solutions key to money policy.
- PBOC Sheng- China may free up bank deposit rates soon.
- (0730 ET/1130 GMT) Challenger Layoffs May previous 61,582.
- (0830 ET/1230 GMT) Jobless Claims May 30 wk consensus 279k, previous 282k.
- (0800 ET/1200 GMT) Continuous Claims May 23 wk consensus 2.208m, previous 2.222m.
- (0830 ET/1230 GMT) Productivity Q1 revised consensus -2.5% q/q previous -1.9%.
- (0830 ET/1230 GMT) Unit Labor Costs Q1 revised consensus +5.9% q/q, previous +5.0%.
- (1000 ET/1400 GMT) Canada May Ivey PMI previous 55.7.
- (1000 ET/1400 GMT) Canada May Ivey PMI s/adjusted 55.5 exp, 58.2 previous.
- N/A Chain Store Sales May.
Key Events Ahead
- (1145 ET/1545 GMT) FedTrade ops 15-yr F.Mae/Fr.Mac max $700m.
- (1200 ET/1600 GMT) Fed Gov Tarullo on econ/financial reg NYk, NY.
- (1430 ET/1830 GMT) FedTrade ops 30yr F.Mae/Fr.Mac max $1.750b.
FX Recap
EUR/USD is supported just above 1.1350 levels and currently trading at 1.1354 levels. It has made intraday high at 1.1378 and low at 1.1229 levels. Once again the pair is being pushed by a continuation of the sell-off in the German Bunds, sending yields higher and sustaining the EUR rally to fresh 2-week tops above 1.1350. The euro rose 0.4 percent to 73.87 pence, extending a 2.2 percent rise since the start of Tuesday. Initial support is seen at 1.1210 and resistance is seen around 1.1383 levels. Option expiries are at 1.1100 (1.4BLN), 1.1145 (691M), 1.1195-1.1205 (690M), 1.1220(489M).USD/JPY is supported around 124.00 levels and posted a high of 124.56 levels. It has made intraday low at 123.76 and currently trading at 124.05 levels. In the absence of significant macro data from Japan this session, markets now turn their attention towards a set of US data releases due later in the day for further momentum. Near term resistance is seen at 124.83 levels and support is seen at 123.51 levels. Option expiries are at 123.50 (1BLN), 124.00 (686M), 125.00 (515M).GBP/USD is supported above $1.5400. It made an intraday high at 1.5440 and low at 1.5302 levels. Pair is currently trading at 1.5415 levels. Against the dollar, sterling was up 0.5 percent at $1.5409. Once again, the BoE monetary policy meeting probed to be a non-event this month, with spot barely reacting following the decision to keep both the refinance rate at 0.5% and the asset purchase facility at £375 billion. Initial support is seen at 1.5250 and resistance is seen around 1.5457 levels. Option expiry is at 1.5150-65 (445M).USD/CHF is supported around 0.9300 levels and trading at 0.9299 levels and made intraday low at 0.9276 and high at 0.9370 levels. Yesterday pair reached to 0.9422 levels at the time of ECB meets and US ADP job data but the upside movement was temporary only. Today is data free session for Switzerland. Near term support is seen at 0.9244 levels and resistance is seen at 0.9430 levels.AUD/USD is supported below 0.7800 levels and trading at 0.7748 levels. It has made intraday high at 0.7786 levels and low at 0.7707 levels. Poor retail sales and trade balance numbers on the Australia data space today signalled further need for policy loosening which dragged the Australian dollar lower across the board. The gap in trade broadened to a record $3.89 billion in April from a revised $1.23 billion in March, expanding more than the $2.1 billion deficit forecast. While retail sales showed no change in April after rising a revised 0.2% in March, falling far short of the forecast of 0.4% growth. Initial support is seen at 0.7689 and resistance at 0.7877 levels. Option expiries are at 0.7700 (582M), 0.7725 (221M), 0.7750 (535M), 0.7780 (379M), 0.7790-0.7800 (580M).
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