Sample Category Title
Euro Trading A Tad Higher In The Asian Session
For the 24 hours to 23:00 GMT, the EUR slightly declined against the USD and closed at 1.1133.
In the US, data showed that the second estimate of annualised gross domestic product (GDP) advanced 3.1% on a quarterly basis in 1Q 2019, in line with market expectations. In the prior quarter, the annualised GDP had recorded a gain of 2.2%, while preliminary figures had indicated a rise of 3.2%. Moreover, the nation’s pending home sales rose 0.4% on a yearly basis in April, compared to a revised fall of 3.1% in the previous month. Market participants had anticipated pending home sales to record an increase of 0.1%. Meanwhile, the US advance goods trade deficit widened to $72.1 billion in April, following a revised deficit of $71.3 billion in the prior month. Market participants had envisaged the nation to record a deficit of $72.7 billion. Further, the seasonally adjusted initial jobless claims jumped to a level of 215.0K on a weekly basis in the week ended 25 May 2019, compared to a revised level of 212.0K in the previous week. Market participants had expected initial jobless claims to advance to a level of 214.0K. Moreover, pending home sales unexpectedly dropped 1.5% on a monthly basis in April. In the prior month, pending home sales had advanced by a revised 3.9%.
In the Asian session, at GMT0300, the pair is trading at 1.1135, with the EUR trading a tad higher against the USD from yesterday’s close.
The pair is expected to find support at 1.1120, and a fall through could take it to the next support level of 1.1104. The pair is expected to find its first resistance at 1.1147, and a rise through could take it to the next resistance level of 1.1158.
Moving ahead, traders would await Germany’s retail sales for April and the consumer price index for May, set to release in a few hours. Later in the day, the US personal income and personal spending, both for April along with the Chicago Purchasing Managers’ Index and the Michigan consumer sentiment index, both for May, will garner significant amount of investors’ attention.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
British Pound Reverses Its Losses In The Morning Session
For the 24 hours to 23:00 GMT, the GBP declined 0.15% against the USD and closed at 1.2610, amid ongoing Brexit uncertainties.
In the Asian session, at GMT0300, the pair is trading at 1.2612, with the GBP trading slightly higher against the USD from yesterday’s close.
Overnight data indicated that UK’s GfK consumer confidence climbed to an 8-month high level of -10.0 in May, compared to a reading of -13.0 in the previous month. Market participants had envisaged the index to register a rise to a level of -12.0. Meanwhile, the nation’s Lloyds business barometer eased to 10.0% in May, declining for the first time in three months and compared to 14.0% in the prior month.
The pair is expected to find support at 1.2582, and a fall through could take it to the next support level of 1.2552. The pair is expected to find its first resistance at 1.2641, and a rise through could take it to the next resistance level of 1.2670.
Looking ahead, investors would keep an eye on UK’s Nationwide house price index for May, net consumer credit and mortgage approvals for April, scheduled to release in a few hours.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
Japan’s Unemployment Rate Fell For The First Time In 2-Months In April
For the 24 hours to 23:00 GMT, the USD marginally declined against the JPY and closed at 109.58.
In the Asian session, at GMT0300, the pair is trading at 109.24, with the USD trading 0.31% lower against the JPY from yesterday's close.
Overnight data revealed that Japan's flash industrial production climbed 0.6% on a monthly basis in April, higher than market consensus for a rise of 0.2%. In the preceding month, industrial production had recorded a drop of 0.6%. Moreover, the nation's unemployment rate declined for the first time in 2-months to 2.4% in April, meeting market expectations. Unemployment rate had registered a rate of 2.5% in the previous month.
Meanwhile, Japan's retail trade remained flat on a monthly basis in April, compared to a rise of 0.2% in the previous month. Market participants had envisaged retail trade to record a rise of 0.6%.
The pair is expected to find support at 108.94, and a fall through could take it to the next support level of 108.63. The pair is expected to find its first resistance at 109.74, and a rise through could take it to the next resistance level of 110.23.
Trading trend in the Japanese Yen today, is expected to be determined by Japan's consumer confidence index for May and housing starts for April, slated to release in a while.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
Trump uses tariffs to stop illegal migrants through Mexico
The highly anticipated "big league statement" of Trump regarding border security turned out to be announcement of the same old "one-trick". In a rather shocked, he announced, by his tweets, to impose 5% tariff on all Mexican imports, "until such time as illegal migrants coming through Mexico, and into our Country, STOP." And the tariff will "gradually increase until the Illegal Immigration problem is remedied".
In the more detailed announcement by the White House, Trump said he was "invoking the authorities granted to me by the International Emergency Economic Powers Act.". Starting June 10, 5% tariff will be imposed on all goods imported from Mexico. If the "crisis persist", tariffs will be raised to 10% on July 1, then 15% on August 1, 20% on September 1, and 25% on October 1.
He further warned: "If Mexico fails to act, Tariffs will remain at the high level, and companies located in Mexico may start moving back to the United States to make their products and goods. Companies that relocate to the United States will not pay the Tariffs or be affected in any way."
Swiss Franc Extends Its Gains In The Morning Session
For the 24 hours to 23:00 GMT, the USD declined 0.06% against the CHF and closed at 1.0076.
In the Asian session, at GMT0300, the pair is trading at 1.0056, with the USD trading 0.20% lower against the CHF from yesterday’s close.
The pair is expected to find support at 1.0041, and a fall through could take it to the next support level of 1.0027. The pair is expected to find its first resistance at 1.0084, and a rise through could take it to the next resistance level of 1.0113.
Going forward, traders would closely monitor Switzerland’s retail sales real for April, slated to release in a few hours.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
Loonie Reverses Its Gains In The Asian Session
For the 24 hours to 23:00 GMT, the USD declined 0.14% against the CAD and closed at 1.3495.
Data showed that Canada’s CFIB business barometer climbed to a level of 59.7 in May, compared to a level of 56.7 in the previous month. Additionally, the region’s current account deficit widened less than expected to C$17.5 billion in 1Q19, following a revised deficit of C$16.6 billion.
In the Asian session, at GMT0300, the pair is trading at 1.3529, with the USD trading 0.25% higher against the CAD from yesterday’s close.
The pair is expected to find support at 1.3496, and a fall through could take it to the next support level of 1.3463. The pair is expected to find its first resistance at 1.3552, and a rise through could take it to the next resistance level of 1.3575.
Looking forward, investors would await Canada’s annualised gross domestic product for the first quarter of 2019, slated to release later in the day.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
Australia’s Private Sector Credit Advanced Less Than Estimated In April
For the 24 hours to 23:00 GMT, the AUD declined 0.07% against the USD and closed at 0.6913.
LME Copper prices declined 0.7% or $41.5/MT to $5823.0/MT. Aluminium prices declined 0.5% or $8.0/MT to $1762.0/MT.
In the Asian session, at GMT0300, the pair is trading at 0.6916, with the AUD trading marginally higher against the USD from yesterday's close.
Overnight data showed that Australia's private sector credit demand advanced 3.7% on an annual basis in April, undershooting market expectations for a rise of 3.8%. In the previous month, the private sector credit had registered a climb of 3.9%.
Elsewhere in China, Australia's largest trading partner, the NBS manufacturing PMI contracted to a level of 49.4 in May, more than market consensus for a drop to a level of 49.9. In the previous month, the PMI had recorded a level of 50.1.
The pair is expected to find support at 0.6898, and a fall through could take it to the next support level of 0.6879. The pair is expected to find its first resistance at 0.6936, and a rise through could take it to the next resistance level of 0.6955.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
Gold: Yellow Metal Extends Its Gains In The Asian Session
For the 24 hours to 23:00 GMT, Gold rose 0.65% against the USD and closed at USD1292.9 per ounce.
In the Asian session, at GMT0300, the pair is trading at 1295.50, with gold trading 0.20% higher against the USD from yesterday’s close.
The pair is expected to find support at 1283.87, and a fall through could take it to the next support level of 1272.23. The pair is expected to find its first resistance at 1302.47, and a rise through could take it to the next resistance level of 1309.43.
The yellow metal is trading above its 20 Hr and 50 Hr moving averages.
Silver: White Metal Reverses Its Gains In The Morning Session
For the 24 hours to 23:00 GMT, Silver rose 0.69% against the USD and closed at USD14.50 per ounce, tracking gains in gold prices.
In the Asian session, at GMT0300, the pair is trading at 14.46, with silver trading 0.17% lower against the USD from yesterday’s close.
The pair is expected to find support at 14.36, and a fall through could take it to the next support level of 14.24. The pair is expected to find its first resistance at 14.57, and a rise through could take it to the next resistance level of 14.67.
The white metal is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
Crude Oil: Oil Trading Lower, Ahead Of Baker Hughes Weekly Rig Count Data
For the 24 hours to 23:00 GMT, Crude Oil declined 4.41% against the USD and closed at USD56.59 per barrel, after the Energy Information Administration (EIA) report indicated that US crude oil stockpiles fell less than expected by 0.3 million barrels to 476.5 million barrels in the week ended 24 May 2019.
In the Asian session, at GMT0300, the pair is trading at 56.11, with oil trading 0.85% lower against the USD from yesterday’s close.
The pair is expected to find support at 54.61, and a fall through could take it to the next support level of 53.12. The pair is expected to find its first resistance at 58.65, and a rise through could take it to the next resistance level of 61.20.
Crude oil is trading below its 20 Hr and 50 Hr moving averages.
