Overnight equity markets
Nikkei -1.18% 9’380.35
S&P500 -0.97% 1’300.16
Dow -0.79% 12’151.26
Nasdaq -1.46% 2’732.78
Overnight ranges
https://ibol81.ibb.ubs.com/fxdesktop/fxd_fxweb/fxwebapp/osrPopup.do
UBS Investment Bank TRADERS SENTIMENT
…have a look at UBS Investment Bank’s FXWeb for all technical updates
EURUSD Buy dips to 1.4600/20, stop/loss below 1.4580, topside target 1.4700
USDCHF Sell rally to 0.8360/80, stop/loss above 0.8390, downside target 0.8300w
EURCHF Sell rally to 1.2230/50, stop/loss above 1.2260, downside target 1.2170
EURJPY Sell rally to 117.80/118.00, stop/loss above 118.10, downside target 117.00
USDJPY Sell rally to 80.50/70, stop/loss above 80.80, downside target 79.80
GBPUSD Buy dips to 1.6380/1.6400, stop/loss below 1.6370, topside target 1.65
EURGBP Buy dips to 0.8880/0.8900, stop/loss below 0.8870, topside target 0.8950
Gold Buy dips around 1542/43, stop/loss below 1538, topside target 1552/53
Silver Buy dips 36.5055, stop/loss below 36.40, topside target 37.2530
UBS Morning Adviser/Macro Keys/Swiss Daily Economic Comment/The week ahead
http://www.easyforexnews.net/uploads/2011/06/20110606_MA.pdf
http://www.easyforexnews.net/uploads/2011/06/MacroKeys060611.pdf
http://www.easyforexnews.net/uploads/2011/06/sd110606.pdf
http://www.easyforexnews.net/uploads/2011/06/WA20110603.pdf
Interest Rate Snapshot
A couple of good news from Greece over the weekend, nevertheless support from the creditors is needed, who must give 30 billion euros to bailout. An article in the independent saying that Greece’s lenders will pass judgment today on its austerity measures. The odds of a sovereign debt default is now said to be a 50:50 possibility. FED: Steve Beckner wrote overnight that, although the Fed officials talk about eventual need to tighten monetary policy, they aren’t signalling tightening is coming soon. Going to be very interesting to hear Bernanke’s speech on Tuesday entitled “The Economic outlook”! In Europe we got the ECB policy meeting on Thursday which is the other highlight of the week, Trichet is expected to indicate a rate hike in July, many suspect he uses the threat of rate hikes to pressure politicians into making a compromise, pressure will certainly be needed in negotiations over the coming weeks. On the futures front we will have a quiet opening, nevertheless the significant downward pressure we have seen at the end of last week makes a test of the support area around 124.96 a possibility today, also given the news stream over the weekend, we must hold above that level to keep the bullish sentiment in place, 125.89-97 is
the level of target on the topside followed by 126.94. A break to the downside would jeopardize long positions and a drop down to 124.10 can not be excluded.
The Day Ahead in EM
Czech Republic: Industrial output for April (Previous 9.50%, Bloomberg consensus 8.00%) and Trade surplus till April (Previous CZK 21.5 bn, Bloomberg consensus CZK 15.0 bn) are due at 0700GMT.
Chile: Economic activity for April is due at 1230GMT (Previous 15.40%, Bloomberg consensus 6.90%)
Brazil: Trade surplus – weekly till June 5 is due at 1400GMT (Previous $286 mn)
http://www.easyforexnews.net/uploads/2011/06/EM-Today-Jun-6.pdf
Gary Dhami
UBS Investment Bank