Currency snapshot (major pairs)

Dollar index trading at 95.75 (-0.01%)

Strength meter (today so far) – Euro -0.14%, Franc +0.02%, Yen +0.28%, GBP -0.06%

Strength meter (since last week) – Euro +0.57%, Franc +0.01%, Yen +0.37%, GBP -0.26%

EUR/USD –

Trading at 1.146

Trend meter –

• Long term – Range, 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 – 1.143

Economic release today –

• Industrial production is up 1.3 percent in May, up 4 percent from a year ago.

Commentary –

• The Euro is the best performer of the week so far. Active Call: Buy Euro targeting 1.19

GBP/USD –

Trading at 1.285

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 – 1.305

Economic release today –

• Unemployment rate declines to 4.5 percent.
• Average earnings grew by 1.8 percent including bonus and by 2 percent excluding it.

Commentary –

• The pound is the worst performer of the week as MPC member Broadbent indicates not ready for rate hikes. We remain bearish in the pound over a longer horizon.

USD/JPY –           

Trading at 113.4

Trend meter –

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

Support –

• Long term – 107, Medium term – 108.4, Short term – 111

Resistance –

• Long term – 116, Medium term – 114.2, Short term – 114.2 (testing)

Economic release today –

• NIL

Commentary –

• The yen recovered as the dollar declined.

USD/CHF –

Trading at 0.963

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 a much worse performer than the euro this week.

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