Market Brief
The Usd was weaker in Asian session. EurUsd jumped sharply to 1.4197 from 1.4081 while UsdJpy traded between 95.50 and 94.70. The persistent rise in commodity prices in past months has seen commodity stocks in Asia rise sharply this morning. As an economic recovery becomes a reality – hedging against inflation through Gold, Silver and Crude has seen these three assets trade past many crucial levels as of late – Gold up 1.8% on Friday alone. However, crude and Silver moves have surpassed all expectations – Silver rising 27% in may (it’s largest monthly gain in 22 years) while crude jumped a record 30% (a move not seen since 1999). This played to the tune of the Sterling, Yen and Aussie dollar – all rising at an exceptional pace since market open last night.
The dollar weakened early on in the session but fought back through the night as the GM bankruptcy filing draws nearer. President Obama is set to officially announce the filing – testament to the pervasive nature and importance of this event. We expect the USD bearish sentiment / selling to continue this week. Data in focus today will be the US manufacturing ISM data which is expected to improve to 42.0 which would be supportive of risky assets / USD negative.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 9,677.75 | + 1.63 |
| Hang Seng Index | 18,828.28 | + 3.67 |
| Shanghai Index | 2,719.68 | + 3.29 |
| FTSE futures | 4,390.50 | + 0.59 |
| DAX futures | 5,047.00 | + 2.24 |
| CAC futures | 3,328.50 | + 1.91 |
| DJIA futures | 8,580.00 | + 1.08 |
| World Markets | Current Level | % Change |
| Gold | 982.29 | + 0.32 |
| Silver | 15.77 | + 0.15 |
| VIX | 28.92 | - 8.68 |
| Crude wti | 67.45 | + 1.71 |
| USD Index | 79.16 | - 1.56 |
| Todays Calender | Estimates | Previous | Country / GMT |
| Manufacturing PMI (May Final) | 40.5 | 40.5p | EUR / 10:00 |
| CIPS/Markit Report on Manufacturing (May) 09.30 | 44.0 | 42.9 | GBP / 10.30 |
| Personal Income (Apr) | -0.2% | -0.3% | USD / 12.30 |
| Personal Spending (Apr) | -0.2% | -0.2% | USD / 12.30 |
| PCE Deflator (Apr) | 0.0%,0.4 | 0.0%,0.6 | USD / 12.30 |
| Core PCE Deflator (Apr) | 0.3%,1.9 | 0.2%,1.8 | USD / 12.30 |
| ISM Manufacturing Index (May) | 43.0 | 40.1 | USD / 14.00 |
| Construction Spending (Apr) | -1.5 | 0.3% | USD / 14.00 |
Currency Tech
AUDUSD
R 3: 0.8379
R 2: 0.8150
R 1: 0.8097
CURRENT: 0.8072
S 1: 0.7800
S 2: 0.7700
S 3: 0.7630
EURJPY
R 3: 139.35
R 2: 138.55
R 1: 137.40
CURRENT: 134.87
S 1: 131.50
S 2: 130.73
S 3: 129.70
USDSGD
R 3: 1.4748
R 2: 1.4665
R 1: 1.4580
CURRENT: 1.4392
S 1: 1.4320
S 2: 1.4270
S 3: 1.4165
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
