Forex Analysis

CHF Mid-day Analysis

Like the Euro, the Swiss remains under a negative technical cloud and the downward bias is accentuatedby disappointing Swiss economic readings.

JPY Mid-day Analysis

A recent pattern of lower highs and a temporary probe below 98.00 would seem to leave the bias in the Yenpointing downward.

USD Mid-day Analysis

The Dollar remains within close proximity to its recent highs and the charts would seem to project morenew highs for the move.

CAD Mid-day Analysis

While the bias remains up in the Canadian, recent weakness in a host of physicalcommodities, residual strength in the US Dollar and

GBP Mid-day Analysis

The Pound has failed again on the charts overnight and that action was largely the result of softer thanexpected May UK retail sales figures, some geopolitical drag from the Scottish issue and

Commerzbank: GBP/USD View

In GBP/USD, Commerzbank notes that yesterday it charted an outside day to the downside breaking below the 6 month uptrend at 1.6784.

Commerzbank: EUR/USD View

EUR/USD continues to consolidate around the 200 day ma at 1.3638, notes Commerzbank.

Politics matters for the pound

Last weekend’s European elections have informally kicked off election season in the UK. We highlight three medium term political risks for the pound.

The dollar had a brief, small rally in early Asian trading, but just as quickly gave up gains, leaving suspected PBoC intervention selling USDCNY above 6.26 onshore to be the main event for the day, in our view.

FX Daily

The most important release is euro area money supply and credit growth for April.At the ECB-forum in Sintra ECB-president Draghi in his speech Monday appearedconcerned about banks’ capacity to increase loans.

FI Eye-Opener: Equity markets continue to party

Core bond yields initially climbed higher yesterday, but more dovish ECB comments and violence in Ukraine coupled with rumours that Russian forces would have crossed the border spurred demand for bonds again.

AUD/USD Analysis

Aussie started this morning at $0.9259 and marked an early high of $0.9268. It backed away to $0.9256 a few minutes before the release of the Westpac-MI leading index and held fast near that at $0.9258 after the release.