Currency snapshot (major pairs)

Dollar index trading at 97.41 (-0.13%)

Strength meter (today so far) – Euro +0.12%, Franc -0.01%, Yen +0.04%, GBP +0.38%

Strength meter (since last week) – Euro -0.27%, Franc +0.05%, Yen -0.40%, GBP -0.36%

EUR/USD –

Trading at 1.117

Trend meter –

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

Support          

• Long term – 1.05, Medium term – 1.08, Short term – 1.11

Resistance –

• Long term – 1.16, Medium term – 1.143, Short term – 1.13

Economic release today –

• Markit services PMI declines to 54.7
• Manufacturing PMI improves to 57.3
• EU leaders are in the second day of the EU summit.

Commentary –

• The euro remains downbeat amid hawkish rhetoric from FOMC policymakers.

GBP/USD –

Trading at 1.272

Trend meter –

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

Support –

• Long term – 1.21, Medium term – 1.24, Short term – 1.263

Resistance –

• Long term – 1.345, Medium term – 1.305, Short term – 1.283

Economic release today –

• NIL

Commentary –

• The pound recovered sharply after declining below 1.26 area. Further decline likely. Hawkish comments from BoE members unlikely to support the pound. We expect the pound to reach parity in the longer run.

USD/JPY –           

Trading at 111.2

Trend meter –

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

Support –

• Long term – 107, Medium term – 108.4, Short term – 109

Resistance –

• Long term – 116, Medium term – 114.2, Short term – 111.6

Economic release today –

• Nikkei manufacturing PMI declines to 52 in June.

Commentary –

• The yen remains downbeat on a lack of risk aversion, however, it is finding support around 111.6 area.

USD/CHF –        

Trading at 0.972

Trend meter –

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

Support –

• Long term – 0.90, Medium term – 0.92, Short term – 0.95

Resistance –

• Long term – 1.04, Medium term – 1.01, Short term – 0.987

Economic release today –

• NIL

Commentary –

• Franc is the best performer of the week, now up against the dollar.

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