Market Brief
The Usd was range bound in the Asian session as holidays in the UK and US keep trading volumes low. The EurUsd traded between 1.4043 – 1.3977, while the UsdJpy traded higher to 95.20 from 94.40, as traders sold the Yen as a knee-jerk reaction to North Korea's nuclear tests. The local news agency reported that N. Korea had conducted an underground test, followed by the firing of a short-range missile. Asian regional indexes are higher, with the Nikkei able to shrug off risk aversion selling, to close up 1.31%. The AudUsd pulled back slightly from Friday's 0.7888 high to 0.7774. Yet, we expect the commodity currency to continue to outperform in this environment (improving global fundamentals and rally in commodity prices). The possibility of a US’ ratings downgrade has prompted heated debate in recent days and is hurting the Usd. Even the White house has joined the debate with spokesman Robert Gibbs stating that the US’ AAA rating would not change. However, he didn’t provide any details on why the current administration has taken this view. Last week's EurUsd move has clearly caught many traders off guard and we believe that a slight correction should be expected this week. Eurozone economic data has been supportive of the Eur and the ECB conservative approach to unconventional easing seems to be on point. However, this week’s data will help resolve this issue. Today, the German IFO business climate index due is expected to improve further to 85 from 83.7 previously and the current assessment and expectations surveys should also show improvements.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 9,347.00 | 1.31 |
| Hang Seng Index | 17,086.09 | 0.13 |
| Shanghai Index | 2,610.01 | 0.47 |
| FTSE futures | 4,344.00 | 0.34 |
| DAX Index | 4,839.72 | -1.6 |
| SMI Index | 5,375.36 | -1.6 |
| DJIA Index | 8,232.00 | -0.33 |
| World Markets | Current Level | % Change |
| Gold | 953.25 | -0.42 |
| Silver | 14.62 | -0.4 |
| VIX | 32.63 | 4.08 |
| Crude wti | 61.05 | -1.05 |
| USD Index | 80.29 | 0.3 |
| Todays Calender | Estimates | Previous | Country / GMT |
| UK & US Holiday | -- | -- | -- |
| IFO business climate, index May | 84.8 | 83.7 | GE / 08.00 |
| IFO current assessment, index May | 84.3 | 83.6 | GE / 08.00 |
| IFO business expectations, index May | 85.5 | 83.9 | GE / 08.00 |
| BoI interest rate announcement, % May 28 | 0.50% | 0.50% | ILS / 14.30 |
| ECB's González Parámo speaks at Club Siglo XXI in | -- | -- | EUR / 18.00 |
| Corporate Service Price Index, % y/y Apr | -2.2 | -2.1 | JPY / 23.50 |
Currency Tech
AUDUSD
R 3: 0.8348
R 2: 0.8095
R 1: 0.7930
CURRENT: 0.7784
S 1: 0.7630
S 2: 0.7450
S 3: 0.7335
EURJPY
R 3: 135.57
R 2: 134.80
R 1: 133.60
CURRENT: 132.65
S 1: 130.70
S 2: 129.70
S 3: 126.60
USDSGD
R 3: 1.4748
R 2: 1.4665
R 1: 1.4555
CURRENT: 1.4489
S 1: 1.4320
S 2: 1.4270
S 3: 1.4167
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
