Market Brief
The USD traded broadly higher in the Asian session after a stronger move in early trading. According to Reuters, the British Bankers' Association (BBA) stated that it would allow more financial institutions to take part in the daily survey, which fixes the London interbank offered rate. Market interpreted this change as USD positive, since there is the belief that higher fixings would increase, as banks which report lower fixing would be unable to hide (or skew results) during times of stress. And with interest rate differentials moving in favor of the USD, we could see some additional buying on the expected announcement today. Rebounding risk appetite was a core driver for fx markets, as major US and European equity indexes closed higher for the first time this week. And the optimism has followed through into Asian equity markets. With no real economic data scheduled to be released today, we expect FX markets to be range bound. Yesterday, the EURCHF provided the market with some interesting action. Early in the day, SNB announced no change to the LIBOR target of 0.25%, as was widely expected. Then, Chairman Roth commented that he was happy with the effect of SNB interventions in the FX market, which resulted in stopping the EUR/CHF depreciation. The bank reiterated its readiness to act again if required, but warned that markets should not become accustomed to expecting intervention at a particular level. The market seemed to take this as an invite to test the SNB commitment, pushing the pair down to 1.5008. The EUR/CHF responded later in the day to a rapid move to 1.5140, which has led to suspicions of official intervention but the SNB and other related entities have refused to comment. With no real economic data scheduled to be released today and most market moves being of little real significance, we expect FX markets to be range bound.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 9,786.26 | 0.85 |
| Hang Seng Index | 17,932.60 | 0.87 |
| Shanghai Index | 2,880.49 | 0.93 |
| FTSE 100 Index | 4,305.64 | 0.57 |
| DAX Index | 4,835.87 | -0.03 |
| SMI Index | 5,420.15 | 0.85 |
| DJIA futures | 8,568.00 | 0.21 |
| World Markets | Current Level | % Change |
| Gold | 934.36 | 0.14 |
| Silver | 14.23 | 0.1 |
| VIX | 30.03 | -4.78 |
| Crude wti | 71.81 | 0.63 |
| USD Index | 80.52 | -0.08 |
| Todays Calender | Estimates | Previous | Country / GMT |
| Banxico interest rate announcement, % Jun | 4.75% | 5.25% | MXN / 14.00 |
Currency Tech
AUDUSD
R 3: 0.8378
R 2: 0.8260
R 1: 0.8108
CURRENT: 0.8039
S 1: 0.7825
S 2: 0.7745
S 3: 0.7700
EURJPY
R 3: 139.20
R 2: 138.33
R 1: 135.37
CURRENT: 134.78
S 1: 132.35
S 2: 131.50
S 3: 129.73
USDSGD
R 3: 1.4800
R 2: 1.4748
R 1: 1.4665
CURRENT: 1.4561
S 1: 1.4425
S 2: 1.4355
S 3: 1.4335
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
