Forex - Dollar weakens against Yen and CHF on risk aversion
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Forex News and Events:
US ISM manufacturing in May came out better than expected at 49.6 from 48.6 previous. The EURUSD traded between 1.5487 and 1.5590 yesterday. The dollar is under pressure as risk aversion comes into the market place following Standard & Poor’s downgrades of several investment banks. Furthermore, the Federal Reserve is closely monitoring oil prices, while traders in Europe eye the ECB for any indications of concern over rising commodity prices and its effects on the Eurozone economy.
The British Pound continues to be under heavy pressure following the release of mortgage approval numbers which plunged to the lowest on record at 58k versus 63k previous. With figures like these, the MPC will likely cut rates, keep an eye on inflation and hope for a rebound in the sector.
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Today's Key Issues (time in GMT):
09:00 EUR Euro-Zone GDP s.a. (QoQ) (1Q P) 0.7% vs 0.7%
09:00 EUR Euro-Zone GDP s.a. (YoY) (1Q P) 2.2% vs 2.2%
09:00 EUR Euro-Zone Gross Fixed Capital Form. (QoQ) 1.5% vs 0.8%
09:00 EUR Euro-Zone Government Expenditure (QoQ) 0.7% vs -0.1%
09:00 EUR Euro-Zone Household Consumption (QoQ) 0.2% vs -0.1%
09:00 EUR Euro-Zone PPI (MoM) (APR) 0.8% vs 0.7%
09:00 EUR Euro-Zone PPI (YoY) (APR) 6.1% vs 5.7%
13:00 EUR ECB's Trichet, Fed's Bernanke, BOJ's Shirakawa Speak in Spain
14:00 USD Factory Orders (APR) -0.1% vs 1.4%
16:00 EUR Italian New Car Registrations (YoY) (MAY)
17:00 EUR Italian Budget Balance (Euro) (MAY)
17:00 EUR Italian Budget Balance (Euro) (YTD) (MAY) -41.1B vs -31.0B
21:00 USD ABC Consumer Confidence (JUN 1)
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The Risk Today:
EurUsd downward pressure remains strong below 1.5664. Currently at 1.5600 and targeting 1.5462 on the downside. A rush back up to 1.6000 is the ultimate risk on the upside.
GbpUsd continuing its medium-term downtrend and targeting 1.9364. A break above 1.9974 would threaten the bearish bias.
UsdJpy The break of 104.61 yesterday opens the door to 103.94.
UsdChf The target is 1.0610. Strong support holds all the way down to 1.0216
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Resistance and Support:
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EURUSD |
GBPUSD |
USDJPY |
USDCHF |
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1.6019 K |
2.0399 S |
111.92 K |
1.1191 K |
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1.5921 M |
2.0101 T |
110.10 T |
1.0625 T |
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1.5819 S |
1.9849 S |
105.70 M |
1.0582 M |
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1.5615 |
1.9669 |
103.93 |
1.0292 |
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1.5500 S |
1.9550 M |
102.60 M |
1.0200 M |
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1.5287 S |
1.9364 K |
100.00 S |
0.9850 S |
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1.5200 S |
1.9188 S |
95.74 K |
0.9637 S |
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S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot |
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