Market Round Up
- Dollar recovers, index up 0.3% – 95.946 fm 95.421.
- EUR/USD plays 1.1151 to 1.1067.
- GBP hits 10 day low at 1.5088 after UK construction disappoints.
- Bund 10yr yields top out at 0.4670, lows 0.4060.
- UK April Markit/CIPS construction 54.2 vs previous 57.8. 57.5 expected.
- Euro Zone Mar Producer prices 0.2% m/m, -2.3% y/y vs previous 0.6% (r)/-2.8%. 0.3%/-2.3% expected.
- Switzerland sight deposits for w/e May 1 384.147bln from previous 385.899.
- Europe raises 2015 euro-area GDP f/c to 1.5% fm 1.3%.
- Europe raises2015 euro-area CPI f/c to up 0.1% fm -0.1%.
- Austria Schelling: Can’t say if there will be a deal on Greek debt on May 11.
- RBA cuts rates 25 BP as expected, no indication of future moves.
- Shanghai composite index closes down 4.1%, biggest one-day fall since Jan 19.
- London nickel hits 5 wk high, copper near 4 month top.
Economic Data Ahead
- (0845 EDT/1245 GMT) RetailEconomist.com/GS Chain Store Sales Index (May 2 wk) (prev +2.5% y/y).
- (0930 EDT/1330 GMT) Trade Balance (Mar) (mkt -$41.3 bln, prev -$35.4 bln).
- (0955 EDT/1355 GMT) Redbook Same Store Sales Index (May 2 wk) (prev +1.4% y/y).
- (1045 EDT/1445 GMT) Markit Services PMI (final Apr) (prev 57.4).
- (1100 EDT/1500 GMT) ISM Non-Manufacturing PMI (Apr) (mkt 56.3, prev 56.5).
Key Events Ahead
- (1245 EDT/1645 GMT) FedTrade Operation 15-year Fannie Mae / Freddie Mac (max $675 mln).
- (1530 EDT/1930 GMT) FedTrade Operation 30-year Ginnie Mae (max $1.000 bln).
- (2100 EDT/0100 GMT) FRB Minneapolis’s Kocherlakota remarks at town hall forum; Marshall, MN.
FX Recap
EUR/USD is trading downside and the broke support level of 1.1102. In the European session Spanish unemployment data came with positive numbers while Europe PPI released with negative numbers. Near term support is at 1.1070 and 1.0958 levels. On the top side, resistance is seen at 1.1224 (Yesterday’s high) and 1.1246. Option expiries are at 1.1020 (239M), 1.1100-10 (630M), 1.1200 (216M).USD/JPY is sustaining above the 120.00 levels, currently trading around 120.30 levels. Very less movement seen in the pair as Japanese banks remain close today again. Traders now await US Trade balance and ISM non manufacturing data due later in the day for further direction on the US dollar moves which may drive the pair. Initial support is seen at 119.75 and resistance is seen at 120.69 levels. Options expiries are at 120.50 (940), 1.2095-1.2100 (470M).
GBP/USD is currently trading at 1.5125 levels. UK released construction PMI data which was below consensus forecast. GBP depreciated to 1.5088 levels. It is sustaining above 1.5100 levels so far. On the upside major resistance is around 1.5175. Any break above will take the pair till 1.5217/1.5260. On the downside minor support is around 1.5100 and weakness can be seen below that level. Options expiries are at 1.5120 (1.4BLN), 1.5000 (1.5BLN), 1.4950 (401M), 1.4900 (744M).USD/CHF trades around 0.9353 levels and it made intraday high at 0.9411 and low at 0.9344. Today is data free session for CHF, now market awaits USD trade balance as well as ISM non manufacturing data for the further direction. On the top side, resistance is seen at 0.9387 and support around 1.9315 levels.AUD/USD has fallen sharply after RBA cut cash rate by 25 BPS to 2.00%.This should ensure some downside follow-through as some shorts covered earlier. Key Fibonacci support is seen at 0.7740 which is the 61.8% of 0.7534/0.8077 move. After the rate decision the pair immediately made new low at 0.7784 and high at 0.7916 levels. The downside movement was short-term only. Pair is currently trading at 0.7870 levels. Initial support is seen at 0.7740 and resistance is seen at 0.7920 levels. Options expiries are at 0.7860 (241M), 0.7700 (516M). NZD/USD: 0.7485 (292M).
The material has been provided by InstaForex Company – www.instaforex.com