Currency snapshot (major pairs)

Dollar index trading at 95.83 (-0.22%)

Strength meter (today so far) – Euro +0.26%, Franc +0.16%, Yen -0.23%, GBP +0.36%

Strength meter (since last week) – Euro +1.16%, Franc +1.07%, Yen -1.14%, GBP +0.42%

EUR/USD –

Trading at 1.141

Trend meter –

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

Support          

• Long term – 1.05, Medium term – 1.08, Short term – 1.11

Resistance –

• Long term – 1.16, Medium term – 1.143, Short term – 1.13 (broken)

Economic release today –

• Services sentiment improves to 13.4 in June.
• Consumer confidence came at -1.3
• Industrial confidence improves to 4.5 in June.
• Economic sentiment improves to 111.1 in June.
• Business Climate improves to 1.15 in June.

Commentary –

• The euro racing higher on a weaker dollar and hawkish comments from Draghi.

GBP/USD –

Trading at 1.298

Trend meter –

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

Support –

• Long term – 1.21, Medium term – 1.24, Short term – 1.263

Resistance –

• Long term – 1.345, Medium term – 1.305, Short term – 1.283 (broken)

Economic release today –

• Net lending to individuals grew to £5.3 billion.
• Consumer credit grew by £1.732 billion.
• M4 money supply grew by 6.7 percent y/y in May.

Commentary –

• The pound is up this week on hawkish comments from Mark Carney. We expect the pound to reach parity in the longer run.

USD/JPY –           

Trading at 112.5

Trend meter –

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

Support –

• Long term – 107, Medium term – 108.4, Short term – 109

Resistance –

• Long term – 116, Medium term – 114.2, Short term – 111.6 (broken)

Economic release today –

• Tokyo and National CPI report will be published at 23:30 GMT, along with unemployment report and followed by industrial production at 23:50 GMT.

Commentary –

• The yen is the worst performer of the week as BoJ is becoming an outlier in monetary policy.

USD/CHF –

Trading at 0.957

Trend meter –

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

Support –

• Long term – 0.90, Medium term – 0.92, Short term – 0.95

Resistance –

• Long term – 1.04, Medium term – 1.01, Short term – 0.987

Economic release today –

• NIL

Commentary –

• Franc is up in line with the euro this week.

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