Market Roundup
- Malaysia's Central Bank: keeps overnight policy rate at 3.25 pct.
- Swiss franc gains 0.8 pct to hit two-week high of 1.0305 francs per euro.
- Risk off sees JPY and CHF rally, USD/JPY threatens 119.00.
- EUR/USD hits 10 week high at 1.1392 as dollar sell-off continues.
- Rising yields help euro higher, German bund 10yr yields hit 0.79.5bps.
- Sterling on the defensive as UK election begins.
- NOK rises after Norway C/B left interest rates unchanged.
- Norway C/B keeps rates on hold, may still cut in June.
- Norge Bank chief: No promise of a June cut.
- Riksbank Jochnick: Rapid SEK appreciation risk to inflation upturns.
- Poland cancels bond tender due to global mkt situation.
- Germany Mar Industrial orders 0.9% vs prev -0.9%. 1.5% exp.
- Switzerland Q2 consumer confidence -6 vs pev -6.
- SNB forex reserves down at 521.888bln at end of April, vs 522.399.
- Syriza MPs to meet Friday to mull position on possible deal.
- France's Sapin says Greece belongs in euro, solution will be found.
Economic Data Ahead
- (0830 EDT/1230 GMT) Challenger Job Cuts Report (Apr) previous 36,594.
- (0930 EDT/1330 GMT) US Jobless Claims (May 2 wk) mkt 280k, previous 262k.
- (0930 EDT/1330 GMT) US Continued Claims (Apr 25 wk) mkt 2.280 mln, previous 2.253 mln.
- N/A NFIB Small Business Jobs Report previous 10.
- (1600 EDT/2000 GMT) Consumer Credit (Mar) mkt $16.00 bln, previous $15.52 bln.
Key Events Ahead
- N/A UK general election
- N/A SNB Chair Jordan at 2day St Gallen conference.
- (0745 EDT/1145 GMT) FedTrade Operation 30-year Ginnie Mae (max $1.000 bln).
- (1000 EDT/1400 GMT) EC Moscovici, Greek FinMin Varoufakis in Brussels panel discussion.
- (1030 EDT/1430 GMT) Fed Trade Operation 30-year Fannie Mae / Freddie Mac (max $1.950 bln).
- (1245 EDT/1645 GMT) ECB Mersch lecture in Barcelona.
FX Recap
EUR/USD is trading at 1.1367 levels and made high of 1.1391so far. Pair broke major resistance levels of 1.1379. A daily close above 1.1355 levels bring the pair towards 1.15 levels. In European session France Trade balance as well as Germany factory orders released with negative numbers. Initial support and resistance is seen at 1.1290/ 1.1448 levels. Option expiries are at 1.1270-75 (577M), 1.1300 (287M), 1.1325 (441M), 1.1405 (209M).
USD/JPY is under pressure but bids ahead of 119 levels. It is currently trading at 119.19 levels and made low of 119.11. After long holidays, Japanese banks have started their work today. Pair is currently focused on 119.00 to the downside Stops are clustered below 119.00; but bids are growing ahead. 119.34 cloud base broken, but confirmation needed with close below Technical bias remains on the upside for now. Initial support is seen at 119.05 and 118.49. Resistance is seen at 120.69 levels. Options expiries are at 119.00 (1.12BLN), 120.50-60 (650M).
GBP/USD is currently trading at 1.5216 levels and made a high of 1.5252. Cable threatens 1.5252 after rallying off 1.5165 amid focus on bond sell-off. It has recovered till 1.5290 after making a low of 1.5080. Intraday trend is bullish as long as support 1.5140 holds. On the upside any break above 1.5250 will target 1.5300/15340 in short term. Option expiries are at 150.00 (226M), 1.5150 (150M).
USD/CHF touched the low at 0.9070 levels and currently trading at 0.9079 levels. Switzerland released consumer confidence data with Positive numbers and CHF appreciated against major parity. Near term support is seen at 0.9055 levels and resistance is seen at 0.9221 levels.
AUD/USD is trading nearby 0.7942 and made intraday low at 0.7940 levels. Australia released Employment data, which came with negative numbers. Markets eye for RBA monetary policy statement as well as China Trade balance data due tomorrow. Short stop is at 0.8010. Resistance is seen at 0.8022 Apr 30 high and Supported by the tenkan line at 0.7921 on the day charts. Option expiries are at 0.7890 (349M), 0.7900 (312M). NZD/USD: 0.7525 (473M).
