The U.S.
dollar traded higher against the most major currencies after the strong ISM non-manufacturing
index for the U.S. he Institute of Supply Management released its
non-manufacturing index today. The index increased to 56.3 in May from 55.2 in
April, exceeding expectations for a rise to 55.6.
According
to the U.S. ADP employment report, private sector employment increased by
179,000 jobs for May, missing expectations for a gain by 217,000 jobs. April's
figure was revised down to an increase of 215,000 from a rise of 220,000.
The U.S.
trade deficit increased 6.9% to $47.2 billion in April, from a deficit of 44.18
in March. That was the largest figure since April 2012. March’s figure was
revised down to a deficit of $44.18 billion from -40.40 billion U.S. dollar.
The Federal
Reserve will release its Beige Book later in the day.
The euro traded
mixed against the U.S. dollar. Eurozone’s services purchase managers’ index
(PMI) declined to 53.2 in May from 53.5 in April. Analysts had expected that
the index remains unchanged.
Eurozone’s
gross domestic product remained unchanged at 0.2% in the first quarter, meeting
analysts’ expectation.
Eurozone’s
producer price index fell 0.1% in April, after a 0.2% decline in March. This
figure was expected by analysts.
German
final services PMI declined to 56.0 in May from 56.4 in April. Analysts had
expected that the index remains unchanged.
French
final services PMI sank to 49.1 in May from 49.2 in April. Analysts had
expected that the index remains unchanged.
Market
participants expect the European Central Bank will add further stimulus
measures on Thursday. Investors are awaiting the ECB will cut interest rates
and announce measures to boost lending to smaller businesses.
The British
pound increased against the U.S. dollar due to the better-than-expected
services PMI. The U.K. services purchasing managers' index declined to 58.6 in
May, from 58.7 in April, but exceeding analysts’ expectations for a decline to
58.3.
The
Canadian dollar declined against the U.S. dollar due to the weak Canadian trade
balance data and the Bank of Canada’s interest rate decision. The Canadian
trade deficit was $0.64 billion in April, after a surplus of C$0.77 billion in
March. March’s figure was revised down from a surplus of C$0.80 billion. Analysts
had expected the trade surplus to fall to C$0.10 billion.
The Bank of
Canada (BoC) kept its interest rate unchanged at 1.00%. Monetary policy makers
said that there are the risks posed by slow inflation remain. The BoC pointed
out that the current monetary policy is appropriate and the timing and
direction of the next change to the interest rate will be determined by future
economic data.
The New
Zealand dollar hits 3-month lows against the U.S dollar following a decline in
dairy prices. Dairy product prices dropped 4.2% to the lowest level since
February 2013. Whole milk powder prices slid 8.5%, extending their drop since a
February 5, 2014 auction to 28%.
No economic
data was published in New Zealand.
The
Australian dollar climbed against the U.S. dollar due to strong economic growth
in Australia, but lost a part of its gains. The Australian gross domestic
product rose 1.1% in the first quarter, exceeding expectations of a 0.9% gain,
after a 0.8% increase the previous quarter.
On a yearly
basis, the gross domestic product in Australia increased 3.5% in the first
quarter, after a 2.8% rise the previous quarter.
The AIG
services index for Australia climbed to 49.9 in May from 48.6 in April.
The
Japanese yen traded mixed against the U.S. dollar in the absence of any major
economic reports in Japan.
The Bank of
Canada (BoC) released its interest rate decision on Wednesday. The BoC kept its
interest rate unchanged at 1.00%. Monetary policy makers said that there are the
risks posed by slow inflation remain.
Total
inflation in Canada increased to around 2% target due to the temporary effects
of higher energy prices and weaker currency. The core inflation in Canada
remains significantly below 2% target.
Canadian
and global economy grew slower than expected in the first quarter of 2014. The slower
growth was caused by severe weather and supply constraints.
The Bank of
Canada Governor Stephen Poloz said in a statement on Wednesday the downside
risks to the inflation outlook are as important as before.
The BoC
pointed out that the current monetary policy is appropriate and the timing and
direction of the next change to the interest rate will be determined by future
economic data.
The
Commerce Department released the trade balance data on Wednesday. The U.S. trade
deficit increased 6.9% to $47.2 billion in April, from a deficit of 44.18 in March.
That was the largest figure since April 2012. March’s figure was revised down
to a deficit of $44.18 billion from -40.40 billion U.S. dollar.
Imports rose
1.2% in April to a record $240.6 billion from $237.8 billion in March. Exports declined
0.2% to $193.3 billion.
The trade gap
with the European Union was the largest on record.
The trade
gap with China jumped 16.3% to $27.3 billion in April from $20.4 billion in
March.
EUR/USD $1.3550, $1.3600, $1.3650, $1.3685, $1.3700
USD/JPY Y102.05/10, Y102.15, Y103.50
USD/CAD Cad1.0925, Cad1.0935/40, Cad1.1000
AUD/USD $0.9200, $0.9300, $0.9325, $0.9340
GBP/USD $1.6830, $1.6910
USD/CHF Chf0.8895, Chf0.9005, Chf0.9025
The
Canadian trade deficit was released on Wednesday. The trade deficit was $0.64
billion in April, after a surplus of C$0.77 billion in March. March’s figure
was revised down from a surplus of C$0.80 billion.
Analysts
had expected the trade surplus to fall to C$0.10 billion.
That
development of trade balance was caused by energy exports drop. Energy exports
dropped 11% in April.
Later in
the trading session, the Bank of Canada (BoC) will release its interest rate
decision. Analysts expect the BoC will keep interest rate unchanged at 1.00%.
The U.S.
ADP employment report was released on Wednesday. Private sector employment
increased by 179,000 jobs for May, missing expectations for a gain by 217,000
jobs. April's figure was revised down to an increase of 215,000 from a rise of
220,000.
Goods-producing
employment climbed by 29,000 jobs in May, up from 21,000 jobs gained in April. Service-providing
employment increased by 150,000 jobs in May, down from 194,000 in April.
Economic
calendar (GMT0):
01:30 Australia Gross Domestic Product (QoQ) Quarter I +0.8%
+0.9% +1.1%
01:30 Australia Gross Domestic Product (YoY) Quarter I +2.8%
+3.5%
07:48 France Services PMI (Finally) May 49.2 49.2
49.1
07:53 Germany Services PMI (Finally) May 56.4 56.4
56.0
07:58 Eurozone Services PMI May 53.5 53.5
53.2
08:30 United Kingdom Purchasing Manager Index Services May
58.7 58.3 58.6
09:00 Eurozone Producer Price Index, MoM April -0.2% -0.1% -0.1%
09:00 Eurozone Producer Price Index (YoY) May -1.6% -1.2% -1.2%
09:00 Eurozone GDP (QoQ) (Revised) Quarter I +0.2% +0.2% +0.2%
09:00 Eurozone GDP (YoY) (Revised) Quarter I +0.9% +0.9% +0.9%
The U.S.
dollar traded lower against the most major currencies ahead of the release of
several U.S. economic reports.
The euro increased
against the U.S. dollar despite the weaker-than-expected economic data in the
Eurozone. Eurozone’s services purchase managers’ index (PMI) declined to 53.2
in May from 53.5 in April. Analysts had expected that the index remains
unchanged.
Eurozone’s
gross domestic product remained unchanged at 0.2% in the first quarter, meeting
analysts’ expectation.
Eurozone’s
producer price index fell 0.1% in April, after a 0.2% decline in March. This
figure was expected by analysts.
German
final services PMI declined to 56.0 in May from 56.4 in April. Analysts had
expected that the index remains unchanged.
French
final services PMI sank to 49.1 in May from 49.2 in April. Analysts had
expected that the index remains unchanged.
Market
participants expect the European Central Bank will add further stimulus
measures on Thursday. Investors are awaiting the ECB will cut interest rates
and announce measures to boost lending to smaller businesses.
The British
pound rose against the U.S. dollar due to the better-than-expected services PMI.
The U.K. services purchasing managers' index declined to 58.6 in May, from 58.7
in April, but exceeding analysts’ expectations for a decline to 58.3.
The
Canadian dollar traded higher against the U.S. dollar ahead of the Canadian
trade balance data and the Bank of Canada’s interest rate decision. The
Canadian trade balance deficit should be 0.2 billion CAD, after a surplus of
0.1 billion CAD.
Interest
rate in Canada should remain unchanged at 1.00%.
EUR/USD:
the currency pair increased to $1.3626
GBP/USD:
the currency pair climbed to $1.6766
USD/JPY:
the currency pair decreased to Y102.56
The most
important news that are expected (GMT0):
12:00 G7
G7 Meetings
12:15 U.S. ADP Employment Report May 220 217
12:30 Canada Trade balance, billions April 0.1 -0.2
12:30 U.S. International Trade, bln April -40.4 -40.8
12:30 U.S. Nonfarm Productivity, q/q
(Finally) Quarter I -1.7%
-2.2%
14:00 Canada Bank of Canada Rate
1.00% 1.00%
14:00 Canada BOC Rate Statement
14:00 U.S. ISM Non-Manufacturing May
55.2 55.6
18:00 U.S. Fed's Beige Book
EUR/USD
Offers $1.3695/700, $1.3688, $1.3670/80, $1.3655, $1.3640
Bids $1.3600, $1.3585/80, $1.3570, $1.3550
GBP/USD
Offers $1.6835/40, $1.6782
Bids $1.6690
AUD/USD
Offers $0.9380, $0.9350, $0.9330, $0.9300
Bids $0.9255/50, $0.9235/30, $0.9210/00
EUR/JPY
Offers Y140.80, Y140.50, Y140.00
Bids Y139.50, Y139.20, Y139.00, Y138.85/80
USD/JPY
Offers Y103.50, Y103.00
Bids Y102.55/50, Y102.00, Y101.60
EUR/GBP
Offers stg0.8195/205, stg0.8160/65
Bids stg0.8080, stg0.8050
EUR/USD $1.3550, $1.3600, $1.3650, $1.3685, $1.3700
USD/JPY Y102.05/10, Y102.15, Y103.50
USD/CAD Cad1.0925, Cad1.0935/40, Cad1.1000
AUD/USD $0.9200, $0.9300, $0.9325, $0.9340
GBP/USD $1.6830, $1.6910
USD/CHF Chf0.8895, Chf0.9005, Chf0.9025
Economic
calendar (GMT0):
01:30 Australia Gross Domestic Product (QoQ) Quarter I +0.8% +0.9% +1.1%
01:30 Australia Gross Domestic Product (YoY) Quarter I +2.8% +3.5%
07:48 France Services PMI (Finally) May 49.2 49.2 49.1
07:53 Germany Services PMI (Finally) May 56.4 56.4 56.0
07:58 Eurozone Services PMI May 53.5 53.5 53.2
08:30 United Kingdom Purchasing Manager Index Services May 58.7 58.3 58.6
The U.S.
dollar traded higher against the most major currencies due to strong factory
orders in the U.S. The U.S. factory orders climbed 0.7% in April, beating
expectations for 0.6% increase, after a 1.1% gain in March.
The New
Zealand dollar hits 3-month lows against the U.S dollar following a decline in
dairy prices. Dairy product prices dropped 4.2% to the lowest level since
February 2013. Whole milk powder prices slid 8.5%, extending their drop since a
February 5, 2014 auction to 28%.
No economic
data was published in New Zealand.
The
Australian dollar climbed against the U.S. dollar due to strong economic growth
in Australia. The Australian gross domestic product rose 1.1% in the first
quarter, exceeding expectations of a 0.9% gain, after a 0.8% increase the
previous quarter.
On a yearly
basis, the gross domestic product in Australia increased 3.5% in the first
quarter, after a 2.8% rise the previous quarter.
The AIG services
index for Australia climbed to 49.9 in May from 48.6 in April.
The
Japanese yen hits 1-month lows against the U.S. dollar due to overnight gains
in U.S. Treasury yields.
EUR/USD:
the currency pair declined to $1.3610
GBP/USD:
the currency pair decreased to $1.6720
USD/JPY: the currency pair climbed to Y102.80
The most
important news that are expected (GMT0):
09:00 Eurozone Producer Price Index, MoM April -0.2% -0.1%
09:00 Eurozone Producer Price Index (YoY) May -1.6% -1.2%
09:00 Eurozone GDP (QoQ) (Revised) Quarter I +0.2% +0.2%
09:00 Eurozone GDP (YoY) (Revised) Quarter I +0.9% +0.9%
12:00 G7 G7 Meetings
12:15 U.S. ADP Employment Report May 220 217
12:30 Canada Trade balance, billions April 0.1 -0.2
12:30 U.S. International Trade, bln April -40.4 -40.8
12:30 U.S. Nonfarm Productivity, q/q (Finally) Quarter I -1.7% -2.2%
14:00 Canada Bank of Canada Rate 1.00% 1.00%
14:00 Canada BOC Rate Statement
14:00 U.S. ISM Non-Manufacturing May 55.2 55.6
18:00 U.S. Fed's Beige Book
EUR / USD
Resistance levels (open interest**, contracts)
$1.3732 (3983)
$1.3701 (1840)
$1.3658 (351)
Price at time of writing this review: $ 1.3614
Support levels (open interest**, contracts):
$1.3572 (3325)
$1.3547 (4514)
$1.3515 (4706)
Comments:
- Overall open interest on the CALL options with the expiration date June, 6 is 58273 contracts, with the maximum number of contracts with strike price $1,3850 (6354);
- Overall open interest on the PUT optionswith the expiration date June, 6 is 76662 contracts, with the maximum number of contractswith strike price $1,3500 (8943);
- The ratio of PUT/CALL was 1.32 versus 1.35 from the previous trading day according to data from June, 3.
GBP/USD
Resistance levels (open interest**, contracts)
$1.7000 (2741)
$1.6900 (2089)
$1.6802 (1319)
Price at time of writing this review: $1.6722
Support levels (open interest**, contracts):
$1.6697 (2601)
$1.6599 (2451)
$1.6500 (979)
Comments:
- Overall open interest on the CALL options with the expiration date June, 6 is 24585 contracts, with the maximum number of contracts with strike price $1,7000 (2741);
- Overall open interest on the PUT optionswith the expiration date June, 6 is 26971 contracts, with the maximum number of contracts with strike price $1,6700 (2601);
- The ratio of PUT/CALL was 1.10 versus 1.10 from the previous trading day according to data from June, 3.
* - 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.
EUR/USD $1,3626 +0,21%
GBP/USD $1,6748 +0,01%
USD/CHF Chf0,8962 -0,23%
USD/JPY Y102,53 +0,16%
EUR/JPY Y139,71 +0,37%
GBP/JPY Y171,70 +0,16%
AUD/USD $0,9265 +0,27%
NZD/USD $0,8432 -0,20%
USD/CAD C$1,0907 +0,09%