Market Roundup
- Euro rises to $1.10 for first time in three weeks.
- Sterling rises above $1.54 for first time in 2 months as dollar weakness continues, trades at $1.5407.
- Swedish crown rises to 12-day high against euro of 9.2410 crowns per euro after rates left unchanged.
- EU's Moscovici says talks with Greece at advanced stage but not going fast enough.
- China will cut tariffs on some imported consumer goods by end of June-State Council Statement.
- Swedish c. Bank keeps rate on hold at -0.25 pct vs forecast cut to -0.35 pct in Reuters poll.
- United Kingdom Apr CBI Distributive Trades decreases to +12 (consensus 25 ) vs previous 18.
- United Kingdom Apr Nationwide House Price YY increases to +5.2 % (consensus 4.1 %) vs previous 5.1 %.
- United Kingdom Apr Nationwide House Price MM increases to +1.0 % (consensus 0.2 %) vs previous 0.1 %.
- European Union Apr Cons Inflation Expectation increases to 0.7 vs previous -0.8.
- European Union Apr Consumer Confidence Final decreases to -4.6 (consensus -4.6 ) vs previous -3.7.
- European Union Apr Industrial Sentiment decreases to -3.2 (consensus -2.8 ) vs previous -2.9.
- European Union Apr Business Climate increases to 0.32 (consensus 0.21 ) vs previous 0.23.
- European Union Apr Economic Sentiment decreases to 103.7 (consensus 103.9 ) vs previous 103.9.
- European Union Mar Money-Private Loans increases to 0.1 % (consensus 0.0 %) vs previous -0.1 %.
- European Union Mar Money-M3 Annual Growth increases to 4.6 % (consensus 4.3 %) vs previous 4.0 %.
- Italy Apr Business Confidence increases to 104.1 (consensus 103.7 ) vs previous 103.7.
- Italy Apr Consumer Confidence decreases to 108.2 (consensus 110.5 ) vs previous 110.9.
Economic Data Ahead
- (0830 EDT/1230 GMT) US GDP Annualized Q1, consensus 1.0%, previous 2.2%
- (0830 EDT/1230 GMT) US Real PCE (Q1 advance) previous +4.4% q/q AR
- (0830 EDT/1230 GMT) US Core PCE Price Index (Q1 advance) consensus +1.0% q/q AR, previous +1.1% q/q AR
- (1000 EDT/1400 GMT) US Pending Home Sales yy, previous 12%
- (1905 EDT/2305 GMT) UK Gfk Consumer Confidence, previous 4.
Key Events Ahead
- N/A Japanese PM Abe (invited) to address U.S. Congress
- (1400 EDT/1800 GMT) US Fed Interest Rate decision, previous 0.25%.
- (1700 EDT/2100 GMT) RBNZ Interest Rate decision, previous 3.5%
FX Recap
EUR/USD remained boosted despite mixed results from the common currency area. It rose above the 1.10 mark for the first time in three weeks and currently trades at 1.1004 levels. It now faces major resistance at 1.1030/40 region ahead of the FOMC meeting and US first quarter GDP data to be released later in the day. On the flipside, a break below 1.0959 levels could drag the pair to 1.0860 levels.
GBP/USD rose to a two-month high at 1.5405 levels and currently trades at 1.5357 levels. The US dollar met fresh selling interest ahead of the FOMC meeting and GDP data. On the topside, resistance is eyed at 1.5445 (March 2 High) levels and a break above could see the pair testing 1.5478 (Feb 23 High) levels. On the downside, support is located at 1.5328 (Today's Low) and then at 1.5300 levels.
USD/SEK: The Swedish crown rose to a fresh one-month high against the US counterpart at 8.4015 levels and its highest in almost two weeks against the euro after Sweden's central bank left the interest rates unchanged. USD/SEK currently trades at 8.4053 levels, down from 8.5353 levels before the interest rate decision. EUR/SEK plunged to 9.2421 levels post the interest rate decision, and now trades at 9.2470 levels, a break below 9.2250 levels could see it further falling to 9.1375 levels.
USD/JPY remained well bid in the European session and it climbed to 119.17 levels as the 10-year Treasury yield rose to 2%. Pair's upside is likely to be capped by 119.19 (100-DMA) levels, and a break above could extend its gains to 119.894 (50-DMA). On the other hand, support might be found at 118.97 (5-DMA) levels, below which losses could be extended to 118.74 levels.
USD/CHF rose to 0.9571 levels in the European session and later fell to 0.9551 levels nearing yesterday's close on the back of recent weakness in the US dollar. On the topside, the pair might run into resistance at 0.9600 levels and then at 0.9617 levels. To the downside, a break 0.9550 levels would make the way for 0.9500 levels.
AUD/USD has broken major resistance 0.7935 and reached till 0.80265. Intraday trend is bullish as long as support 0.7960 (7 day 4H EMA) holds. The pair's major resistance is around 0.8030 and any break above will take the pair till 0.81139/0.8250 in short term. On the downside minor support is around 0.7960 and break below will drag the pair further down till 0.7900/0.7870.
