Currency snapshot (major pairs)

Dollar index trading at 97.06 (+0.06%)

Strength meter (today so far) – Euro -0.03%, Franc -0.18%, Yen -0.22%, GBP -0.11%

Strength meter (since last week) – Euro +0.10%, Franc -0.18%, Yen +0.02%, GBP -0.02%

EUR/USD –

Trading at 1.12

Trend meter –

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

Support          

• Long term – 1.07, Medium term – 1.09, Short term – 1.10

Resistance –

• Long term – 1.16, Medium term – 1.14, Short term – 1.14

Economic release today –

• Industrial production is up 1.4 percent y/y.
• First quarter employment change was 0.4 percent.

Commentary –

• Despite several attempted breakouts, the euro is still struggling around 1.12 area. The focus is on FOMC today.

GBP/USD –

Trading at 1.273

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 –

• The unemployment rate came at 4.6 percent.
• Wages grew by 1.7 percent excluding bonus and by 2.1 percent including it.

Commentary –

• The pound remains dogged by post-election uncertainties as Conservatives form a minority government. We expect the pound to reach parity in the longer run.

USD/JPY –           

Trading at 110.3

Trend meter –

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

Support –

• Long term – 107, Medium term – 109, Short term – 109

Resistance –

• Long term – 119, Medium term – 115, Short term – 113

Economic release today –

• Industrial production is up 5.7 percent y/y in April.

Commentary –

• The yen gave up earlier gain as risk aversion subside.

USD/CHF –        

Trading at 0.97

Trend meter –

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

Support –

• Long term – 0.92, Medium term – 0.95, Short term – 0.95

Resistance –

• Long term – 1.04, Medium term – 1.01, Short term – 0.98

Economic release today –

• NIL

Commentary –

• Franc is the worst performer of the euro. It is heading for a test of 0.95 area.