Yesterday‘s U.S. retail sales for May again confirmed a more positive stance of the economy, increasing the inflation expectation and therefore hindering the country‘s currency from further gains. Today, Michigan University‘s consumer confidence index for June is expected to show a slight increase. This, if the outcome is as expected, could put a further lid on the dollar as investors become more willing to take on risk.
Accordingly, our trading bands for the USD in the majors are lower today, as described in detail below. The consumer confidence index will be published at 16:00 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair is on a slight selling tone this European morning and currently trading at 1.4040, back from highs around 1.4150. We expect these highs to be tested again today, and eventually broken, to a maximum of 1.4210.
GBP / USD
On a correction path from highs around 1.6600, cable is currently priced at 1.6445. We do not see much more downside risk in today’s trading - after a test of the 1.6400 level, the market should recover to 1.6550.
USD / CHF
There is not much direction in the dollar against the Swiss franc this European morning, rather a continuing see-saw trading between 1.0820 and 1.0710, currently at 1.0750. We see the slight selling tone continuing today, although in low volatility, leading to prices around 1.0680.
USD / JPY
The dollar strengthened in Asian trading and early European hours against the yen, to highs of now 98.15 near resistance around the 98.40 level. We don’t expect this level to be broken today, but to give way to downward moves around the 97.90 support.
Accordingly, our trading bands for the USD in the majors are lower today, as described in detail below. The consumer confidence index will be published at 16:00 CET.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair is on a slight selling tone this European morning and currently trading at 1.4040, back from highs around 1.4150. We expect these highs to be tested again today, and eventually broken, to a maximum of 1.4210.
GBP / USD
On a correction path from highs around 1.6600, cable is currently priced at 1.6445. We do not see much more downside risk in today’s trading - after a test of the 1.6400 level, the market should recover to 1.6550.
USD / CHF
There is not much direction in the dollar against the Swiss franc this European morning, rather a continuing see-saw trading between 1.0820 and 1.0710, currently at 1.0750. We see the slight selling tone continuing today, although in low volatility, leading to prices around 1.0680.
USD / JPY
The dollar strengthened in Asian trading and early European hours against the yen, to highs of now 98.15 near resistance around the 98.40 level. We don’t expect this level to be broken today, but to give way to downward moves around the 97.90 support.
