Currency snapshot (major pairs)

Dollar index trading at 98.96 (-0.19%)

Strength meter (today so far) – Euro +0.26%, Franc +0.21%, Yen -0.13%, GBP +0.40%

Strength meter (since last week) – Euro +0.26%, Franc +0.21%, Yen -0.13%, GBP +0.40%

EUR/USD –

Trading at 1.096

Trend meter –

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

Support          

• Long term – 1.032, Medium term – 1.05, Short term – 1.07

Resistance –

• Long term – 1.12, Medium term – 1.10, Short term – 1.10

Economic release today –

• NIL

Commentary –

• The euro started the week on a positive footing as risk affinity finally fuelling the rally. The net speculative position in the euro turned long.

GBP/USD –

Trading at 1.293

Trend meter –

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

Support –

• Long term – 1.16, Medium term – 1.23, Short term – 1.27

Resistance –

• Long term – 1.32, Medium term – 1.305, Short term – 1.305

Economic release today –

• UK Prime minister Theresa May’s speech is scheduled today at 19:00 GMT.

Commentary –

• The pound is the best performer of the day so far. We expect the pound to reach parity in the longer run.

USD/JPY –           

Trading at 113.5

Trend meter –

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

Support –

• Long term – 109, Medium term – 110, Short term – 112

Resistance –

• Long term – 119, Medium term – 115, Short term – 115

Economic release today –

• Flash report showed Machine tools orders are up 34.7 percent from a year ago.

Commentary –

• The yen is the worst performer of the day as risk affinity triggers selloff.

USD/CHF –        

Trading at 0.998

Trend meter –

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

Support –

• Long term – 0.95, Medium term – 0.95, Short term – 0.98

Resistance –

• Long term – 1.08, Medium term – 1.037, Short term – 1.037

Economic release today –

• Producer and import price declined by 0.2 percent in April, up 0.8 percent from a year ago.

Commentary –

• Franc is up in line with the euro.  Active call -Franc might decline to 1.08 per dollar. Target extended to 1.14