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Holidays in Greater China and Hong Kong see mixed equities moves with Yen crosses drifting lower on political uncertainty in the U.K and Europe.

With both the U.K. and the U.S. out overnight and with China, Taiwan and Hong Kong dragon boating today, the Asia session was never likely to be a fiery one. This should all start to change this afternoon as the week become very data heavy indeed around the world. Over the next 24 hours the most closely watched data should be U.S. PCE Inflation, always watched closely by the Fed, followed by China's PMIs. Soggy prints on both in recent times may see the risk-off them in Asia today continue into midweek.

With a lack of direction from New York, Asia's attentions were focussed mainly on Europe's travails. P.M May reiterated she would still enact a hard Brexit if Europe did not produce an acceptable deal. Polls continue to show that Labour is only six percent behind the Conservatives. Greece may opt out of its next debt payment ask creditors haggle over debt relief. Italian banks were under pressure as rumours continue to swirl about an early Election in September. Finally, the ECB's Draghi set a very dovish tone in comments yesterday.

This produced a risk-off environment in Asia with both EUR/USD, AUD/USD and USD/JPY falling on Cross/JPY selling. It had the usual knock on effect on the Nikkei which finishes the day slightly in the red.

FX

EUR/USD fell from 1.1165 to 1.1115 and starts Europe just above its lows at 1.1120. The single currency has support nearby at 1.1100, and the charts suggest a break would see more stop-loss selling appear with the next meaningful chart support around 1.1000. Overhead, resistance appears at 1.1180

USD/JPY fell through 111.00 early in the session which appears to have triggered short term stop losses. It fell as low as the 110.80 area as investors sold AUD/JPY and EUR/JPY before stabilising around 110.97

USD/JPY has initial support at 110.80 followed by 110.50 ahead of the pivotal 110.00 area. Resistance appears at 111.45 and then 111.85.

EUR/JPY fell from 124.00 to 123.25 and finishes the session just above there at 110.30 as Asian investors get cold feet on Europe and Draghi's dovishness. Initial support lies at 123.00 with a daily close possibly signalling a much deeper correction below 122.00 could be on the cards.

Resistance is at 123.55 before more important resistance at 124.25 and 124.55.

AUD/JPY suffered the same fate as ERU/JPY being a risk-off proxy. The cross dropped from 82.80 to 82.30 before recovering to 82.45. The move down is more significant however as the cross has broken long-term trendline support at 82.60 today. A close below here tonight could imply a further drop to the 81.60 area initially.

Resistance lies at 82.80 and then 82.90 followed by 83.30. Support rests at 82.15 and then 81.60.

Nikkei 225

Followed USD/JPY and the crosses lower as per normal procedure. The index is delicately poised at its present level of 19,670. Resistance is now heavy above at 19800 and then 20,050.

Support lies at 19.560 before the vital 19,280 regions. This is the low of the 18th May and the 100-day moving average.

OIL

Holiday's in both the U.S and the U.K saw both Brent and WTI trade sideways through the overnight session to finish up roughly unchanged from Friday's close. WTI spot did attempt a move higher in thin trading but failed at the 50.00 level before slipping back to the 49.50 region. Brent meanwhile, contented itself to trade quietly in a 52.00/52.50 range for the most part.

With China and Hong Kong out today, we would expect much of the same for the Asia session barring any unexpected headline risk. The week should pick up going forward as we run into a series of data-heavy days around the world.

Brent spot trades at 52.30 with initial support at 51.90 and then 51.00. Initial resistance is at 52.70 followed by 53.00.

WTI spot trades at 49.65 with support at 49.20. Above, 50.00 will form an important pivot, with a move above implying the rally can extend to the 51.00 area initially.

GOLD

Gold opened with a bid tone in Asia and continued through the session. The bid tone should continue, although the picture will muddy somewhat as we head into a very data heavy rest of the week globally. For now, risk aversion should continue to support gold and precious metals in general.

Gold trades at 1268.50 and is attempting to force its way through the 1270 resistance level just above with 1272 very close behind that. A break of the latter would imply gold may have the legs to reach for 1280 in the coming sessions.

Support also lies nearby at 1264.50 with a break opening up a move to 1260. A close below this level could signal a deeper correction to the 1245 area may be on the cards.

EURUSD

The EURUSD was indecisive yesterday but traded lower earlier today in Asian session, slipped below the H1 EMA 200 as you can see on my H1 chart below, hit 1.1122. The bias is bearish in nearest term testing 1.1080 support area which remains a good place to buy with a tight stop loss as a clear break and daily close below that area would expose 1.0950 region. Immediate resistance is seen around 1.1160 (H1 EMA 200). A clear break and daily close above that area could trigger further bullish pressure testing 1.1200 – 1.1265 resistance area. I still prefer a bullish scenario at this phase but a clear break and daily close below 1.1080 would activate my wait and see mode.

GBPUSD

The GBPUSD attempted to push higher yesterday topped at 1.2850 but traded lower earlier today in Asian session slipped below 1.2800. The bias remains bearish in nearest term testing 1.2780 support area which remains a good place to buy with a tight stop loss as a clear break below that area would expose 1.2700 – 1.2670 or lower. Immediate resistance is seen around 1.2850. A clear break above that area could lead price to neutral zone in nearest term testing 1.2900/25 resistance area.

USDJPY

The USDJPY was indecisive yesterday but traded lower earlier today in Asian session hit 110.77. The bias is bearish in nearest term testing 110.25/00 region. A clear break and daily close below that area would expose 108.00 area this week. Immediate resistance is seen around 111.30. A clear break above that area could lead price to neutral zone in nearest term but as long as stay below the trend line resistance and 112.00 key resistance I still prefer a bearish scenario at this phase and any upside pullback should be seen as a good opportunity to sell.

USDCHF

The USDCHF had a moderate bullish momentum yesterday and hit 0.9794 earlier today in Asian session. The bias is bullish in nearest term testing 0.9815 area which is a good place to sell with a tight stop loss as a clear break above that area would give further confirmation to the double bottom bullish scenario (see my H4 chart below)with nearest target seen around 0.9900. Immediate support is seen around 0.9765. A clear break below that area could lead price to neutral zone in nearest term testing 0.9695 key support area.

Politics

(UK) According to Times/Survation Poll, support for UK Conservatives at 43% vs 37% for Labour - US financial press

(UK) Opposition Labour Party leader Corbyn: Would be open to Scotland referendum talk with SNP if Labour party wins next month's elections - UK press

(UK) PM May reiterates prepared to walk away from Brexit talks without a deal with the EU if the agreement was not good enough – UK Press

(BR) Brazil President Temer: No parties informed him of plan to quit coalition; Still fully capable of governing

(GR) Greece may opt out of next payment without a debt deal - German Press

Key economic data

(JP) JAPAN APR RETAIL SALES M/M: +1.4% (6-month high) V -0.2%E; RETAIL TRADE Y/Y: 3.2% (2-year high) V 2.3%E

(JP) JAPAN APR OVERALL HOUSEHOLD SPENDING Y/Y: -1.4% V -0.9%E; 14th consecutive month of decline

(JP) JAPAN APR JOBLESS RATE: 2.8% V 2.8%E (matches lowest rate since Jun 1994)

(AU) AUSTRALIA APR BUILDING APPROVALS M/M: +4.4% V +3.0%E; Y/Y: -17.2% (8th consecutive decline) V -18.1%E

(NZ) NEW ZEALAND APR BUILDING PERMITS M/M: -7.6% V -1.2% PRIOR; 2nd straight decline and biggest decline in 5 months

Asia Session Notable Observations, Speakers and Press

Asian indices are mixed as thin trading persists for the 2nd day of Dragon Boat Festival day, with Shanghai, Taiwan, and Hong Kong all joining US markets for holiday break. Korea's Kospi is seeing some profit taking from recent record highs, Australia is marginally higher, while Nikkei225 is dragged down by USD/JPY retreat below 111. Modest risk-off is playing out in FX space going into key US PCE inflation data and China manufacturing PMIs this week, both of which have shown underwhelming prints over the past 2 months. EUR/USD is also under pressure, falling for the 4th straight session to 1.1120. Dovish remarks from ECB head Draghi justifying the current easy stance were compounded by escalating standoff between Greece and negotiations, as German press reported Athens may opt out of next payment without a debt deal. GBP/USD was also down slightly to fall below $1.28, with another poll showing Labour gaining on Conservatives heading into elections in just 10 days.

Economic data were also largely mixed. Japan jobless rate remains at 23-year low 2.8%, though household spending continues to falter with its 14th consecutive month of decline. Recall the latest Labor Cash earnings data out of Japan saw the biggest decline in nearly 2 years, suggesting that tight labor market is not producing wage inflation. Former BOJ member Shirai notes this is largely to the structural rigidity in Japan society. In Australia, building approvals rose m/m after a significant decline in the prior month, however economists with Westpac said the rebound is likely to be temporary, and housing investment will still enter into material decline later this year and becoming a drag on growth.

China

(CN) PBOC denies press report it told banks to deposit in dollars, in order to meet liquidity needs - financial press

(CN) Templeton's Mobius: Iron ore consumption in China likely to be sustained as infrastructure buildup continues - press

Japan

(JP) Former BOJ member Shirai: Japan has a labor shortage but labor structure is not allowing wage inflation

Australia/New Zealand

(AU) Westpac: Monthly update on Australia building approvals was more positive than expeted, but slowdown theme remains - press

(NZ) Moody's: Budget highlights fiscal flexibility and shock absorption capacity

Korea

(KR) South Korea Financial Supervisory Service (FSS): Bad debt ratio for loans by local lenders in Q1 fell 0.04pts to 1.38%, lowest since Q4 of 2012 - Korean press

(KR) South Korea conducted drills with US B-1B strategic bomber on Monday

Asian Equity Indices/Futures (00:00ET)

Nikkei -0.3%, Hang Seng closed, Shanghai Composite closed, ASX200 +0.2%, Kospi -0.5%

Equity Futures: S&P500 flat; Nasdaq flat, Dax flat, FTSE100 -0.1%

FX ranges/Commodities/Fixed Income (00:00ET)

EUR 1.1120-1.1170; JPY 110.75-111.30; AUD 0.7415-0.7445; NZD 0.7035-0.7060

June Gold flat at 1,268/oz; July Crude Oil +0.1% at $49.86/brl; July Copper -0.5% at $2.56/lb

(JP) Japan MoF sells ¥1.99T v ¥2.2T indicated in 2-yr 0.1% (prior 0.1%) JGBs; Avg yield: -0.162% v -0.193% prior; bid to cover: 5.06x v 5.51x prior

(AU) Australia MoF sells A$150M in 2.0% in 2035 bonds; bid-to-cover 2.36x

(AU) Australia Office of Financial Management (AOFM) CEO: No plan to extend bond curve beyond 30 years - press

Asia equities notable movers

Australia

Insurance Australia (IAG) +3.1%; Raised at Credit Suisse

Sandfire Resources (SFR) +1.3%; Guides FY17 production

Japan

Suzuki (7269) +0.5%; Apr production

Panasonic (6752) +0.4%; To increase output at Tesla battery plant - comments from mid-term outlook

Japan Airlines (9201) -0.5%; Cut at JPMorgan

Toshiba (6502) -0.7%; INCJ to enter into negotiations with Western Digital regarding joint bid for chip unit - Japanese Press

A note on lower timeframe confirming price action...

Waiting for lower timeframe confirmation is our main tool to confirm strength within higher timeframe zones, and has really been the key to our trading success. It takes a little time to understand the subtle nuances, however, as each trade is never the same, but once you master the rhythm so to speak, you will be saved from countless unnecessary losing trades. The following is a list of what we look for:

• A break/retest of supply or demand dependent on which way you're trading.
• A trendline break/retest.
• Buying/selling tails ... essentially we look for a cluster of very obvious spikes off of lower timeframe support and resistance levels within the higher timeframe zone.
• Candlestick patterns. We tend to only stick with pin bars and engulfing bars as these have proven to be the most effective.

We typically search for lower-timeframe confirmation between the M15 and H1 timeframes, since most of our higher-timeframe areas begin with the H4. Stops are usually placed 1-3 pips beyond confirming structures.

EUR/USD

In recent hours, the single currency has come under pressure. Without citing sources, there's speculation around the Greek government preparing to possibly go without the next bailout payment if creditors cannot agree on debt relief. The move, as you can see, forced price beyond our H4 buy zone at 1.1142/1.1150 and has, at the time of writing, clocked a low of 1.1135. The reasons for selecting this area were as follows:

H4 mid-level support at 1.1150.

H4 AB=CD (see black arrows) 127.2% Fib ext. at 1.1140 taken from the high 1.1268.

Daily support at 1.1142.

From a technical perspective, the weekly candles indicate that further downside could be on the cards since price is seen trading nearby a formidable supply area coming in at 1.1533-1.1278. What's also interesting is the recently formed weekly selling wick, also known as a bearish pin bar. In the event that the bears continue to push lower this week, the next downside target can be seen at 1.0873: the 2016 yearly opening line. Down on the daily chart, however, the unit is seen crossing swords with support drawn from 1.1142. This forms part of our H4 buy zone mentioned above.

Our suggestions: Although price has surpassed the aforementioned H4 buy zone, there's still a possibility that it may hold firm and challenge the underside of the recently broken H4 demand at 1.1161-1.1189 as resistance. Personally, we're not fond of the recent move down, since a truckload of stops have likely been triggered beneath 1.1142 on the Greece rumors. With that being the case, our team will remain on the sidelines for the time being and reassess market structure going into tomorrow's open.

Data points to consider: US PCE price index at 1.30pm, US Consumer confidence at 3pm GMT+1

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: Flat (stop loss: N/A).

GBP/USD

Recent action shows that the GBP/USD extended Friday's bounce from 1.2775 up to the H4 mid-level resistance coming in at 1.2850, which happens to coincide nicely with a daily resistance line at 1.2843. With bids likely weakened around the 1.28 handle the next level on our radar, assuming that this market continues to selloff, is the H4 Quasimodo support at 1.2769.

The stops taken from 1.28 would likely provide enough liquidity for the big boys to begin buying this market at 1.2769. What's more, let's remember that we are also trading from a weekly support at 1.2789! Therefore, there is a good chance price will bounce from 1.2769 and at least reach 1.28.

Our suggestions: Based on the above points, our desk believes the aforementioned H4 Quasimodo support level is stable enough to consider a buy trade from, with a stop-loss order placed below the pattern's apex at 1.2748.

Data points to consider: US PCE price index at 1.30pm, US Consumer confidence at 3pm GMT+1.

Levels to watch/live orders:

• Buys: 1.2769 region ([possible pending order] stop loss: 1.2748).
• Sells: Flat (stop loss: N/A).

AUD/USD

While the commodity currency maintained its offered tone below the H4 mid-level resistance pegged at 0.7450 yesterday, price was relatively subdued due to US banks being closed in observance of Memorial Day. However, we did happen to short this pair yesterday at 0.7440. For those who read Monday's report you may recall our desk mentioning that we're waiting for a second retest of 0.7450 to be seen. The candle rejection from this line was enough to reassure us that the bears remain in control.

In addition to the above, we also knew that weekly price was trading from a resistance area planted at 0.7524-0.7446. This produced a reasonably strong-looking selling wick last week which could imply further downside may be on the cards. Neighboring support rests in the form of a nearby trendline support etched from the low 0.6827. Also of interest were the daily candles. We do not see much in the way of support on the daily timeframe until we reach the support zone marked at 0.7284-0.7326 (fuses nicely with the aforementioned weekly trendline support).

Our suggestions: Ultimately, we are targeting the 0.74 handle as our initial take-profit target. Granted, we do have a H4 demand lurking nearby marked with a green arrow around 0.7420, which may produce a minor reaction. The more appealing area, however, remains around the 0.74 level, since it merges with a H4 61.8% Fib support taken from the low 0.7328 and a H4 Quasimodo support at 0.7394.

Data points to consider: Australian Building approvals at 2.30am. US PCE price index at 1.30pm, US Consumer confidence at 3pm GMT+1.

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: 0.7440 ([live] stop loss: 0.7463).

USD/JPY

As can be seen from the H4 chart this morning, yesterday's trading volume was thin due to US banks being closed in observance of Memorial Day. Despite this, May/April's opening levels at 111.29/111.41 did a good job of holding back any fresh upside attempts. With little change seen to the structure of this market, much of the following report will echo similar thoughts put forward in Monday's analysis…

Weekly bears remain in a relatively strong position after pushing aggressively lower from supply registered at 115.50-113.85. We know there's a lot of ground to cover here, but this move could possibly result in further downside taking shape in the form of a weekly AB=CD correction (see black arrows) that terminates within a weekly support area marked at 105.19-107.54 (stretches all the way back to early 2014). In conjunction with weekly flow, daily price continues to defend the resistance area penciled in at 111.35-112.37. The next area on the hit list falls in at 107.15-107.90: a support zone that's glued to the top edge of the said weekly support area.

Our suggestions: Although price has bounced from a H4 channel support taken from the low 110.23 (ties in nicely with the 111 handle), we believe this will be short-lived move given what we've seen on the bigger picture.

With that being the case, our team is watching for a H4 close to form below 111 today. Not only would this imply bearish strength from the higher-timeframe structures, it would also clear the runway south down to at least the H4 mid-level support at 110.50. To take advantage of this potential move, one could either sell the breakout or conservatively wait for price to retest 111 as resistance and sell with lower-timeframe confirmation (see the top of this report). We prefer the latter.

Data points to consider: US PCE price index at 1.30pm, US Consumer confidence at 3pm GMT+1.

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: Watch for H4 price to engulf 111 and then look to trade any retest seen thereafter ([waiting for a lower-timeframe signal to form following the retest is advised] stop loss: dependent on where one confirms this level).

USD/CAD

Although yesterday's movement was somewhat muted given the US banks being closed in observance of Memorial Day, there's some nice-looking H4 price action forming at the moment.

To the upside, we have a potential H4 AB=CD bearish pattern (taken from the low 1.3387) taking shape that terminates just ahead of a H4 broken Quasimodo line drawn from 1.3542/H4 mid-level resistance at 1.3550 and a daily resistance area at 1.3598-1.3559. This small (red) area marks a possible zone where price could bounce.

To the downside, we also see a potential H4 AB=CD 161.8% Fib ext. at 1.3292 taken from the high 1.3540. This number helps form a strong-looking (green) buy zone. 1.3272/1.3312: holds the following structures:

Daily support at 1.3272.

1.33 handle.

March/April's opening levels at 1.3310/1.3312.

Daily trendline support confluence (1.2968/1.3027).

Also of note is the H4 buy zone is seen lodged within the lower limits of the weekly demand at 1.3223-1.3395!

Our suggestions: As you can see, both zones hold a reasonable amount of confluence and have the potential to reverse price. To be on the safe side, however, we would recommend not entering blindly at these areas. Wait for additional confirming in the form a reasonably sized H4 rotation candle, preferably a full-bodied candle, before pulling the trigger.

Data points to consider: US PCE price index at 1.30pm, US Consumer confidence at 3pm GMT+1.

Levels to watch/live orders:

• Buys: 1.3272/1.3312 ([waiting for a reasonably sized H4 bull candle to form – preferably a full-bodied candle – is advised] stop loss: ideally beyond the candle's tail).
• Sells: 1.3550/1.3542 ([waiting for a reasonably sized H4 bear candle to form – preferably a full-bodied candle – is advised] stop loss: ideally beyond the candle's wick).

USD/CHF

Going into the early hours of yesterday's US session, the Swissy took off north and has managed to breach the top edge of a H4 range fixed between 0.9774/0.97. As you can see, H4 price is nearing the 0.98 handle, which happens to collaborate with an AB=CD bearish completion point (see black arrows). While selling from 0.98 may be tempting, there's a chance that this psychological hurdle could be demolished. We say this simply because over on the higher timeframes both the weekly and daily charts show room to advance beyond this number, with the closest resistance area not seen until we reach 0.9842-0.9884: a resistance zone that houses a weekly resistance level pegged at 0.9861.

Our suggestions: Personally, we have absolutely no interest in shorting from 0.98 today, despite it having the ability to bounce price. We just would not feel comfortable selling against potential weekly/daily flow! Therefore, for now at least, our desk will remain on the sidelines.

Data points to consider: US PCE price index at 1.30pm, US Consumer confidence at 3pm GMT+1.

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: Flat (stop loss: N/A).

DOW 30

As expected, trading volume was thin in the US equity market yesterday due to US banks being closed in observance of Memorial Day. This has left the H4 candles confined between a supply zone marked at 21139-21101 and a support area drawn from 21048-21015. Technically speaking, this is the last remaining supply standing in the way of this instrument achieving fresh highs. Why we believe this is due to weekly price recently breaching the top edge of a range fixed around record highs of 21170 between 20425/21000, and because of the unit recently driving through the resistance area at 21022-20933, which should effectively now act as a support area. With this area consumed, we do not see any structure on this timeframe stopping the index from achieving fresh record highs.

Our suggestions: Although the bulls look incredibly determined at this time, entering long expecting price to reach new highs would still be a risk, in our opinion. Waiting for the H4 supply mentioned above at 21139-21101 to be taken out is likely the safer route, before considering hunting for longs. Therefore, until we see a decisive close above this area, our desk will remain patiently waiting on the sidelines.

Data points to consider: US PCE price index at 1.30pm, US Consumer confidence at 3pm GMT+1.

Levels to watch/live orders:

• Buys: Watching for H4 price to close above H4 supply at 21139-21101 before looking to long this market.
• Sells: Flat (stop loss: N/A).

GOLD

While yesterday's sessions were relatively quiet given both the UK and US banks being closed, the bulls are currently showing some grit as we write. Between the top edge of a H4 supply zone at 1268.3, the H4 AB=CD 127.2% Fib ext. at 1268.6 (taken from the low 1245.9) and May's opening level at 1270.5, this small green area is under pressure.

Should this area be consumed, it's highly likely that the yellow metal will head to daily supply seen at 1288.1-1278.3, and possibly higher since there's a potential daily AB=CD bearish pattern that terminates a tad beyond a daily Quasimodo resistance at 1307.8. Also of interest is the two weekly Fibonacci extensions 161.8/127.2% at 1313.7/1285.2 taken from the low 1188.1 (green zone – next upside target on the weekly timeframe), which hold the said daily Quasimodo within.

Our suggestions: Despite this current H4 sell zone, our team is reluctant to pull the trigger here when both the weekly and daily charts show room to advance. With that being the case, we will humbly take a step back today, and look to reassess going into tomorrow's open.

Levels to watch/live orders:

• Buys: Flat (stop loss: N/A).
• Sells: Flat (stop loss: N/A).

For the 24 hours to 23:00 GMT, the AUD declined 0.08% against the USD and closed at 0.7438.

LME Copper prices rose 0.1% or $6.0/MT to $5671.0/MT. Aluminium prices declined 0.2% or $4.0/MT to $1950.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7427, with the AUD trading 0.15% lower against the USD from yesterday's close.

Early morning data indicated that Australia's seasonally adjusted building approvals rebounded 4.4% on a monthly basis in April, more than market expectations for an advance of 3.0%. In the preceding month, building approvals had fallen 10.3% in the prior month.

The pair is expected to find support at 0.7412, and a fall through could take it to the next support level of 0.7397. The pair is expected to find its first resistance at 0.7446, and a rise through could take it to the next resistance level of 0.7465.

Looking ahead, investors will focus on Australia's private sector credit data for April, slated to release tomorrow.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the EUR declined 0.26% against the USD and closed at 1.1136, on dovish comments from the European Central Bank (ECB) Chief, Mario Draghi.

The ECB President, in his testimony to the European Parliament, reaffirmed his view that the Euro-zone's economy still needs support of the central bank's expansive monetary stimulus to durably stabilise inflation around 2.0%, even though the common currency region is showing strong resurgence in the economic growth. Further, Draghi added that the ECB will be in a better position at its June meeting to reassess the outlook for growth and inflation.

On Friday, data indicated that Italy's consumer confidence index dropped more-than-anticipated to a level of 105.4 in May, compared to a revised reading of 107.4 in the prior month, while markets were expecting the index to ease to a level of 107.3.

On Friday, the second estimate of US annualised gross domestic product (GDP) was revised up sharply to 1.2% on a quarterly basis in the first quarter of 2017, compared to an advance of 0.7% registered in the preliminary print, suggesting that weakness in the nation's economic performance is likely to be transitory. However, it was the weakest performance since the first quarter of 2016. The GDP had risen 2.1% in the previous quarter, while investors had envisaged the nation to expand 0.9%.

In other economic news, flash durable goods orders in the US eased less-than-expected by 0.7% on a monthly basis in April, dropping for the first time in five months and compared to market expectations for a fall of 1.5%. In the prior month, durable goods orders had gained by a revised 2.3%. Meanwhile, the nation's final Reuters/Michigan consumer sentiment index rose less-than-expected to a level of 97.1 in May, compared to a reading of 97.0 in the previous month, while the preliminary print had indicated an increase to a level of 97.7.

Separately, on Friday, the Federal Reserve (Fed) Bank of San Francisco President, John Williams, reiterated his view that the Fed is likely to raise interest rates a total of three times this year.

In the Asian session, at GMT0300, the pair is trading at 1.1128, with the EUR trading 0.07% lower against the USD from yesterday's close.

The pair is expected to find support at 1.1103, and a fall through could take it to the next support level of 1.1079. The pair is expected to find its first resistance at 1.1171, and a rise through could take it to the next resistance level of 1.1215.

Moving ahead, investors will look forward to Germany's flash inflation figures and the Euro-zone's final consumer confidence data, both for May, slated to release in a few hours. Moreover, in the US, consumer confidence, personal income and personal spending data, all for May, set to be released later today, will be on investors' radar.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the GBP slightly rose against the USD and closed at 1.2820.

In the Asian session, at GMT0300, the pair is trading at 1.2817, with the GBP trading marginally lower against the USD from yesterday’s close.

The pair is expected to find support at 1.2791, and a fall through could take it to the next support level of 1.2766. The pair is expected to find its first resistance at 1.2846, and a rise through could take it to the next resistance level of 1.2876.

Going ahead, market participants await the release of UK’s consumer confidence data for May, scheduled to release overnight.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD declined 0.1% against the JPY and closed at 111.26.

In the Asian session, at GMT0300, the pair is trading at 110.84, with the USD trading 0.38% lower against the JPY from yesterday's close.

Overnight data showed that Japan's jobless rate remained unchanged at 2.8% in April, meeting market expectations. Meanwhile, the nation's seasonally adjusted retail trade advanced more-than-expected by 1.4% MoM in April, compared to a gain of 0.2% in the previous month. Market expectation was for retail trade to climb 0.1%. Also, the nation's large retailers' sales rebounded 1.1% in April, following a drop of 0.8% in the previous month.

The pair is expected to find support at 110.61, and a fall through could take it to the next support level of 110.39. The pair is expected to find its first resistance at 111.23, and a rise through could take it to the next resistance level of 111.63.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.35% against the CHF and closed at 0.9788.

On the macro front, Switzerland's total sight deposits inched up to a level of CHF576.0 billion in the week ended 26 May, from CHF575.5 billion reported in the previous week.

In the Asian session, at GMT0300, the pair is trading at 0.9787, with the USD trading marginally lower against the CHF from yesterday's close.

The pair is expected to find support at 0.9748, and a fall through could take it to the next support level of 0.9709. The pair is expected to find its first resistance at 0.9810, and a rise through could take it to the next resistance level of 0.9833.

Moving ahead, traders await the release of Switzerland's KOF leading indicator data for May, due in a few hours.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.07% against the CAD and closed at 1.3472.

In the Asian session, at GMT0300, the pair is trading at 1.3474, with the USD trading a tad higher against the CAD from yesterday’s close.

The pair is expected to find support at 1.3442, and a fall through could take it to the next support level of 1.3411. The pair is expected to find its first resistance at 1.3491, and a rise through could take it to the next resistance level of 1.3509.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.