Trading Conditions
Products
Tools
Market Roundup
FX Recap
EUR/USD: After five consecutive weeks of gains, the pair is now closing this week in the red territory. U.S. April's inflation figures surprised markets to the upside, renewing buying interest around the dollar and relegating EUR/USD spot to trade near the 1.1000 handle. The shared currency accelerated its correction lower vs. the greenback towards the end of the week. Also there was no major news from the EU Leaders Summit in Riga. Support are at 1.1002 (low May 22) ahead of 1.0994 and then 1.0978 (daily cloud top). On the flipside resistance are at 1.1209 (high May 22), 1.1217 and then 1.1243 (10-d MA). Stand out option expiries next week: EUR/USD: Big 1.1000 strikes every day. Smaller scatterings 1.1150-1.1250
USD/CAD: Greenback frim on Friday after good inflation data, lifting USD/CAD to the vicinity of 1.2300 the figure. Canadian retail sales grew 0.7% from Feb to Mar, decelerating from the previous 1.8% gain, while consumer prices rose less than forecasted, adding downside pressure to the CAD. Next hurdle is at 1.2327 (high Apr 16) followed by 1.2570 (high Apr 15) and finally1.2602 (high Apr 14). On the flip side, supports are seen at 1.2173 (low May 22), 1.2170 (low May 20) and then 1.2130 (low May 19).
USD/JPY: Hawkish Yellen's speech with intentions of a rate rise this year underpinned strength in USD/JPY. BOJ upgraded its assessment of the economy, confirming that the ideas of QQE expansion are premature. Nevertheless, US CPI's were the catalyst to undo what damage the BoJ did to the bulls and the major is taking back its seat on the 121 handle. The pair is currently trading at 121.52 with a high of 121.57 and a low of 120.63. 120.80, 120.00/40, 119.00/42 and the 118.80 level come as supports before 118.30, 117.80 and the well defined 116 level. A break on the upside will put 124.13, June 2007 highs, back on the map. Stand out option expiries next week: USD/JPY 121.00 Tuesday in USD 1.6bln and Wed in 912mln
GBP/USD completely surrendered previous day's gains, as the dollar strengthened broadly following upbeat US core inflation data. The pair fell nearly a hundred pips over the minutes that followed the release and hit a low of 1.5559, retracing completely yesterday's advance. Optimistic comments from Carney did little to help the British pound. The pair is now down over 180 pips from the daily high of 1.5688, trading at the day's low of 1.5482. Immediate support is seen at 1.5445, followed by the 200-DMA support at 1.5414. On the flip side, resiatances are at 1.5521 (May 8 high) and then 1.5576 (5-DMA).