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FX Daily
Not much on the global agenda today. UK CPI is expected to rise to 1.7% y/y from1.6% y/y, which would mark the first increase in more than a year.
FI Eye-Opener: Italian and Spanish bonds facing stormy weather for a change
Bond yields edged further up on both sides of the Atlantic yesterday, though the short end yields actually fell a bit and curves thus steepened. Trading volumes were not particularly large.
AUD/USD Analysis
Aussie fell to a 2-week low this morning, after reports suggested that Australia’s credit rating could be put at risk by disagreement over the Federal budget.
EURUSD – after correction, a close < 1.3673 can confirm a double top
Euro hit our 1.3680 target after breaking key trendline from April and Jan. Together, the uptrend line from last year and the key pivot low from April are critical support going forward.
Daily Market Technicals
EUR/USD continues to consolidate below the 100-DMA after having traded down to fresh 3 month lows last week. Bulls need to see a close above the 100-DMA to
USDJPY – bear flag breakdown along with RSI 40 break => 99.47…97.69
From a classic pattern perspective, $JPY is resolving a 3+ month bear flag and the projection targets are 99.47 & 97.69.
EUR/USD Analysis
Another quiet morning for the euro after it had traded a $1.3702 to $1.3734 range last night in the US. Euro-dollar opened at $1.3709 and
GBP/USD Analysis
The pair closed in NY Monday at $1.6816 after rate had recovered off a session low of $1.6806 to $1.6845 (21-dma Monday).
USD/JPY Analysis
A subdued morning for the Japanese currency, with dollar-yen stuck in a narrow range while euro-yen enjoyed a mild stop-loss driven move higher early in the session.
RBA Board Minutes – May
Today’s Minutes confirmed that the cash rate is on hold over the near term. The RBA’s neutral policy stance wasreaffirmed given in the Bank’s notation that,
ECB Mersch: Chances For June Action Have Risen ‘Substantially’
European Central Bank Executive Board member Yves Mersch said Monday that the chances of further easing measures at June’s monetary policy meeting have risen substantially.
ECB Nowotny: Negative Rates Accepted Elsewhere; Subject of Debate In EZ
European Central Bank Governing Council member Ewald Nowotny said Monday that banks in countries that introduced negative interest rates accepted these, but in a European context such a step requires consideration.