Currency snapshot (major pairs)

Dollar index trading at 97.32 (+0.09%)

Strength meter (today so far) – Euro -0.04%, Franc +0.19%, Yen -0.02%, GBP -0.57%

Strength meter (since last week) – Euro -0.44%, Franc -0.14%, Yen -0.68%, GBP -0.83%

EUR/USD –

Trading at 1.115

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 –

• Eurozone construction output grew 0.3 percent in April, up 3.2 percent from a year ago.

Commentary –

• The euro declined further as Fed’s Dudley reiterates hawkish outlook.

GBP/USD –

Trading at 1.266

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 –

• Official Brexit discussion begins today.

Commentary –

• The pound declined sharply as Mark Carney brushes off rate hike speculations.  We expect the pound to reach parity in the longer run.

USD/JPY –           

Trading at 111.5

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 –

• NIL

Commentary –

• The yen remains downbeat on a lack of risk aversion.

USD/CHF –        

Trading at 0.974

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 best performer of the week but still down against the dollar.