EURUSD: 1.1165-75 (EUR 672m) 1.1190-00 (485m)

USDJPY: 110.00 (USD 1.4bln)

GBPUSD: 1.3200 (GBP 558m)

The international trade deficit was $67.6 billion in April, up $2.5 billion from $65.1 billion in March. Exports of goods for April were $125.9 billion, $1.1 billion less than March exports. Imports of goods for April were $193.4 billion, $1.4 billion more than March imports.

Wholesale inventories for April, adjusted for seasonal variations but not for price changes, were estimated at an end-of-month level of $592.0 billion, down 0.3 percent (±0.4 percent)* from March 2017, and were up 1.8 percent (±1.1 percent) from April 2016. The February 2017 to March 2017 percentage change was revised from up 0.2 percent (±0.4 percent)* to up 0.1 percent

In the week ending May 20, the advance figure for seasonally adjusted initial claims was 234,000, an increase of 1,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 232,000 to 233,000.

The 4-week moving average was 235,250, a decrease of 5,750 from the previous week's revised average. This is the lowest level for this average since April 14, 1973 when it was 232,750. The previous week's average was revised up by 250 from 240,750 to 241,000.

EUR/USD

Offers: 1.1260 1.1275-80 1.1300 1.1320 1.1350 1.1400

Bids: 1.1220 1.1200 1.1180 1.1165 1.1140-50 1.1120 1.1100

GBP/USD

Offers: 1.3000 1.3020 1.3030 1.3050 1.3080 1.3100

Bids: 1.2970 1.2950 1.2930 1.2920 1.29001.2875-80 1.2850

EUR/JPY

Offers: 125.80 126.00 126.50 126.80 127.00

Bids: 125.20 125.00 124.50 124.30 124.00

EUR/GBP

Offers: 0.8665 0.8680 0.8700 0.8720 0.8750

Bids: 0.8650 0.8630 0.8600 0.8585 0.8570 0.8550

USD/JPY

Offers: 112.00 112.30 112.50 112.80 113.00

Bids: 111.60 111.50 111.30 111.00 110.80-85 110.50

AUD/USD

Offers: 0.7500 0.7530 0.7550 0.7570 0.7600

Bids: 0.7465 0.7450 0.7430 0.7400 0.7385 0.7350

Gross fixed capital formation (GFCF), in volume terms, was estimated to have increased by 1.2% to £79.0 billion in Quarter 1 (Jan to Mar) 2017 from £78.1 billion in Quarter 4 (Oct to Dec) 2016.

Business investment was estimated to have increased by 0.6%, to £43.8 billion between Quarter 4 2016 and Quarter 1 2017.

Between Quarter 1 2016 and Quarter 1 2017, GFCF was estimated to have increased by 2.2%, from £77.3 billion and business investment was estimated to have increased by 0.8% from £43.4 billion.

The sectors contributing most to GFCF growth between Quarter 4 2016 and Quarter 1 2017 were public corporations and private sector dwellings, and business investment. Dwellings and other buildings and structures were the assets which contributed most to the increase in GFCF for the same period.

Services output increased by 0.2% between February and March 2017.

The largest contribution to the month-on-month growth came from transport, storage and communication, which contributed 0.23 percentage points of which motion pictures contributed 0.16 percentage points.

The Index of Services increased by 0.2% in Quarter 1 (Jan to Mar) 2017 compared with Quarter 4 (Oct to Dec) 2016; following growth of 0.8% between Quarter 3 (July to Sept) 2016 and Quarter 4 2016.

The slowdown in growth in Quarter 1 2017 mainly came from the distribution, hotels and restaurants sector with notable falls in some consumer-focused industries such as retail.

Growth between Quarter 4 2016 and Quarter 1 2017 has been revised down 0.1% from the previous estimate used in the gross domestic product preliminary estimate, published on 28 April 2017; this was primarily due to the receipt of late data for January and February.

UK gross domestic product (GDP) in volume terms was estimated to have increased by 0.2% between Quarter 4 (Oct to Dec) 2016 and Quarter 1 (Jan to Mar) 2017.

UK GDP growth in Quarter 1 2017 has been revised down by 0.1 percentage points from the preliminary estimate published on 28 April 2017; mainly due to broad-based downward revisions within the services sector.

UK GDP growth slowed to 0.2% in Quarter 1 2017 as consumer facing industries such as retail and accommodation fell and household spending slowed. This was partly due to rising prices. Construction and manufacturing also showed little growth, while business services & finance continued to grow strongly.

GDP in current prices increased by 0.7% between Quarter 4 2016 and Quarter 1 2017.

GDP per head in volume terms was flat between Quarter 4 2016 and Quarter 1 2017.

In March 2017 the seasonally adjusted turnover index increased by 0.5% compared to the previous month (+1.1% in domestic market and -0.9% in non-domestic market). The percentage change of the average of the last three months compared to the previous three months was +0.4% (+1.0% in domestic market and -0.8% in non-domestic market).

In March 2017 the seasonally adjusted industrial new orders index decreased by 4.2% compared with February 2017 (-0.8% in domestic market and -8.3% in non-domestic market). The percentage change of the average of the last three months compared to the previous three months was +1.5% (-1.7% in domestic market and +6.1% in non-domestic market).

With respect to the same month of the previous year the calendar adjusted industrial turnover index increased by +7.2% (calendar working days in March 2017 being 23 versus 22 days in March 2016).

EURUSD: 1.1165-75 (EUR 672m) 1.1190-00 (485m)

USDJPY: 110.00 (USD 1.4bln)

GBPUSD: 1.3200 (GBP 558m)

• Will be advocating raising rates when he sees an opportunity to do so

• He is not taking explicit account of new U.S policies as he makes his forecasts

• Increased operating surpluses to be spent on new capital investments

• New spending includes NZD7 bln over 4 yrs in public services, NZD11 bln on infrastructure

• Medium term economic outlook positive

• Don't need to take additional easing steps to achieve inflation target earlier than what is forecast in april outlook report

• Must ensure boj communicates well with markets to alleviate any worries about future exit from stimulus programme

• Believe it would be fine to maintain for now boj's pledge to increase its bond holdings by around 80 trln yen per year

• It is true boj's recent bond buying pace somewhat slower compared with its 80-trln-yen pledge

• Fiscal consolidation is an important long-term goal

EUR/USD

Resistance levels (open interest**, contracts)

$1.1378 (3017)

$1.1341 (5066)

$1.1282 (5628)

Price at time of writing this review: $1.1234

Support levels (open interest**, contracts):

$1.1171 (833)

$1.1130 (1157)

$1.1067 (2131)

Comments:

- Overall open interest on the CALL options with the expiration date June, 9 is 82063 contracts, with the maximum number of contracts with strike price $1,1000 (6104);

- Overall open interest on the PUT options with the expiration date June, 9 is 100131 contracts, with the maximum number of contracts with strike price $1,0700 (5492);

- The ratio of PUT/CALL was 1.22 versus 1.20 from the previous trading day according to data from May, 24

GBP/USD

Resistance levels (open interest**, contracts)

$1.3301 (1043)

$1.3202 (2706)

$1.3104 (3157)

Price at time of writing this review: $1.2986

Support levels (open interest**, contracts):

$1.2894 (1291)

$1.2797 (2220)

$1.2698 (1756)

Comments:

- Overall open interest on the CALL options with the expiration date June, 9 is 35692 contracts, with the maximum number of contracts with strike price $1,3000 (4169);

- Overall open interest on the PUT options with the expiration date June, 9 is 36220 contracts, with the maximum number of contracts with strike price $1,1500 (3061);

- The ratio of PUT/CALL was 1.01 versus 1.03 from the previous trading day according to data from May, 24

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

(pare/closed(GMT +2)/change, %)

EUR/USD $1,1214 +0,27%

GBP/USD $1,2968 +0,05%

USD/CHF Chf0,9735 -0,24%

USD/JPY Y111,56 -0,22%

EUR/JPY Y125,09 +0,04%

GBP/JPY Y144,66 -0,17%

AUD/USD $0,7498 +0,29%

NZD/USD $0,7042 +0,44%

USD/CAD C$1,3406 -0,79%