Increasing sorrows about a deflation phase in the Eurozone created a picture of a weaker euro. But deflation for a currency means at first strength for it, not weakness, whatever the economy tries do to get out of such an experience. For today, it was expected that German import prices for May would sink further. That was the case, but the euro did not react to that - in the aspect described above. Despite this, the market expects for this week a weaker euro, an expectation we have our doubts about.
As shown in early European trading, there is a bid tone in the majors against the dollar today, which could lead a little further. But later we expect some steam to develop in the Greenback, as described below in the major pairs’ projected trading bands. Note today’s U.S. personal income and personal spending figures for May at 14:30 CET, usually a market mover. Expected is another slight increase in both numbers.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Trading beyond its long-term highs, the pair currently is in an upmove, priced at 1.4075 in this European morning. We expect some further upmoves today, testing the 1.4120 level.
GBP / USD
Cable traded stronger in early European trading and is right now at 1 6450, attacking the 1.6500 resistance level again. We expect that level to be surpassed, but only shortly, to a maximum of 1.6530. After that, downward corrections are in the cards, back to the 1.6400 handle level.
USD / CHF
The dollar lost some ground against the Swiss franc in early trading, from highs around 1.1000 to now 1.0910. This represents a major support line in today’s market, which we see not to be broken today. A low volatile market between that level and the upper limit at 1.1000 is in the cards.
USD / JPY
Asian trading of the dollar against the yen finished in low volatility and continued in the same state in this European morning. Currently trading at 95.75, the market is capped in a sideways trend between 95.90 and 95.65. We expect a downward break of this trading band today, leading to prices around 94.80.
As shown in early European trading, there is a bid tone in the majors against the dollar today, which could lead a little further. But later we expect some steam to develop in the Greenback, as described below in the major pairs’ projected trading bands. Note today’s U.S. personal income and personal spending figures for May at 14:30 CET, usually a market mover. Expected is another slight increase in both numbers.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
Trading beyond its long-term highs, the pair currently is in an upmove, priced at 1.4075 in this European morning. We expect some further upmoves today, testing the 1.4120 level.
GBP / USD
Cable traded stronger in early European trading and is right now at 1 6450, attacking the 1.6500 resistance level again. We expect that level to be surpassed, but only shortly, to a maximum of 1.6530. After that, downward corrections are in the cards, back to the 1.6400 handle level.
USD / CHF
The dollar lost some ground against the Swiss franc in early trading, from highs around 1.1000 to now 1.0910. This represents a major support line in today’s market, which we see not to be broken today. A low volatile market between that level and the upper limit at 1.1000 is in the cards.
USD / JPY
Asian trading of the dollar against the yen finished in low volatility and continued in the same state in this European morning. Currently trading at 95.75, the market is capped in a sideways trend between 95.90 and 95.65. We expect a downward break of this trading band today, leading to prices around 94.80.
