Currency snapshot (major pairs)

Dollar index trading at 97.16 (+0.18%)

Strength meter (today so far) – Euro -0.09%, Franc -0.10%, Yen -0.30%, GBP -0.20%

Strength meter (since last week) – Euro +0.46%, Franc +0.51%, Yen +0.14%, GBP +0.54%

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 –

• Markit manufacturing PMI came at 57 in May.

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 –

• Markit manufacturing PMI declines to 56.7 in May.

Commentary –

• The pound remains dogged by declining margin in the polls for the Conservatives in the upcoming election, however, recovered and the best performer of the week. We expect the pound to reach parity in the longer run.

USD/JPY –           

Trading at 111.1

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 –

• Nikkei manufacturing PMI improves to 53.1 in May.

Commentary –

• The yen’s performance waned as risk aversion lacks.

USD/CHF –        

Trading at 0.969

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 –

• The first quarter GDP grew by 1.1 percent y/y.
• Real retail sales declined 1.2 percent y/y in April.
• SVME PMI declines to 55.6 in May

Commentary –

• Franc’s performance improved. It is heading for a test of 0.95 area.