Currency snapshot (major pairs)

Dollar index trading at 97.13 (-0.28%)

Strength meter (today so far) – Euro +0.38%, Franc +0.36%, Yen -0.01%, GBP +0.30%

Strength meter (since last week) – Euro +0.33%, Franc +0.20%, Yen +0.40%, GBP +0.49%

EUR/USD –

Trading at 1.122

Trend meter –

• Long term – Sell, Medium term – Buy, Short term – Range/ Buy

Support          

• Long term – 1.07, Medium term – 1.09, Short term – 1.10

Resistance –

• Long term – 1.16, Medium term – 1.14, Short term – 1.12 (testing)

Economic release today –

• Unemployment in April declines to 9.3 percent.
• Consumer price inflation in April declines to 1.4 percent y/y. Core declines to 1 percent.

Commentary –

• The euro is consolidating around key resistance of 1.12

GBP/USD –

Trading at 1.285

Trend meter –

• Long term – Sell, Medium term – Buy, Short term – Buy

Support –

• Long term – 1.16, Medium term – 1.23, Short term – 1.27

Resistance –

• Long term – 1.32, Medium term – 1.305, Short term – 1.305

Economic release today –

• Net lending to individuals declines to £4.3 billion.
• Consumer credit for April came at £1.525 billion.
• Money supply increased by 1.2 percent in April, up 8.2 percent from a year ago.

Commentary –

• The pound remains dogged by declining margin in the polls for the Conservatives in the upcoming election. We expect the pound to reach parity in the longer run.

USD/JPY –           

Trading at 110.8

Trend meter –

• Long term – Sell, Medium term – sell, Short term – Range

Support –

• Long term – 109, Medium term – 110, Short term – 112

Resistance –

• Long term – 119, Medium term – 115, Short term – 115

Economic release today –

• Housing starts grew by 1.9 percent y/y in April.
• Construction orders are down by 0.2 percent y/y in April.

Commentary –

• The yen’s performance improved as the dollar weakens across the board.

USD/CHF –        

Trading at 0.971

Trend meter –

• Long term – Buy, Medium term – Range/Buy, Short term – Range

Support –

• Long term – 0.95, Medium term – 0.95, Short term – 0.95

Resistance –

• Long term – 1.08, Medium term – 1.037, Short term – 1

Economic release today –

• UBS consumption indicator improves to 1.48 in April.
• Zew survey expectations improve to 30.8 in May.

Commentary –

• Franc is the worst performer of the week so far but positive against the dollar.