Daily FX Market Commentary

Andy Harrison

Good Morning,

LMAX Close

USDJPY 111.919 | EURUSD 1.12446| AUDUSD 0.71532 | NZDUSD 0.66863 | USDCAD 1.33919 | USDCHF 1.01456 | GBPUSD 1.2988 |

LMAX highs and Lows 05.00 GMT

                                Highs | Lows

EURUSD               1.12453 | 1.12358

USDJPY                 111.991 | 111.900

GBPUSD               1.29973 | 1.29865

USDCHF               1.01493 | 1.01422

AUDUSD              0.71515 | 0.71355

USDCAD               1.33872 | 1.33583

NZDUSD               0.66893 | 0.66732

EURCHF                1.14070 | 1.14023

EURGBP               0.86569 | 0.86476

EURJPY                 125.922 | 125.755

For Today

  • GBP: With bank holidays continuing for parts of the world the market again suffered from a lack of liquidity falling back through to the 1.2985 area in early trading, minor fluctuations with the range contained for the most part around the 1.2990 levels through to the grey hours and the bank holiday London session, Topside light congestion through the 1.3100 level with stronger congestion increasing into the 1.3140 levels and likely to increase on any push above the 1.3150 level with limited potential for a break through the 1.3200 areas, with stronger offers remaining above the level. downside bids cleared through to the 1.3050 areas with congestion increasing into the 1.2980 level with stronger bids not really expected until closer to the 1.2900 levels and strong stops on a break through the 1.2880 level.
  • JPY: Opening a little lower around the 111.85 areas and moving steadily through to the closing levels to fill the gap on the charts and then a slow rise through to close to the 112.00 area to set the open, a slow drift through to the grey hour saw the market back to the close from Friday. Topside offers remain on any push through to the 112.20 with possible weak stops through the level before further offers around the 1.1250 level absorb the move and slow the market on any push to the 1.1300 level, while there maybe stops on a break the market is likely to see stronger congestion through the level continuing through to the 1.1400 areas, downside bids light through to the 111.00 area with congestion in the area and through to the 110.50 level before any weakness appears and the 110.00 becomes susceptible to a test with strong congestion on any dips.
  • AUD: A slow drift from the opening highs around the 0.7155 area and drifting off through the session to the 0.7135 level before finding some limited support into the grey hours, Topside offers through to the 0.7200-20 area before weak stops are likely to appear and the market seeing limited congestion on a move through to the 0.7250 areas limited congestion through to 0.7280 where the offers are likely to appear on any break through the 73cents area and increase on a move through to the 0.7350 areas. Downside bids likely to be congestive around the 71 cents level but limited withy better bids appearing closer to the 0.7000-20 areas increasing in size the low you go in that area, stronger stops possible on a break through the 0.6980-70 areas before congestion moves in around the 0.6950 areas.
  • EUR: A slow dip through the session to the 1.1235 areas where the market held through into the grey hour, Topside congestion through to the 1.1320 level and a solid push towards the 1.1350 level could see weak stops appearing and opening a test through to the 1.1400 area if 1.1360 is pushed through, congestion likely to appear around that 1.1400 areas and stronger offers possibly on a push through towards the 1.1450 level the highs of last month. Downside bids light but congestive through to the 1.1200 level with better bids likely in that area with weak stops on a break below the 1.1180 level opening a test into the 1.1140-60 areas and further congestion then appearing and increasing into the 1.1100 areas.

 

Overnight News

EUR:

Italy’s perma-recession could trigger a €2Trillion financial crisis that threatens the Eurozone itself BDR

Italy’s populist coalition has failed to make progress on a promise to sell off €17B in state assets by end of this year, throwing into doubt Rome’s ability to cut its vast public spending FT

USD:

Oil smashes resistance level as US vows Zero Iran waivers BFW

US to sanction nations for importing Iranian oil APW

GBP:

PM May to be told to quit as PM by June or Tory party will change rules to boot her out The Sun

USD/CNY:

Trade deal alone won’t fix strained US/CNY business relations DJ

JPY:

Japan’s PM Abe’s ruling bloc suffers rare losses in two by-elections -SBT

 

Today’s Data

Actual A | Consensus C | Previous P | Revised R | all timings GMT/UTC

14:00     USD       Existing Home Sales Mar C 5.31M | P 5.51M

 

Harry Hindsight

 

  • GBP: A slow rise through to the London session however, the move into Bank holiday London and NYK session saw the market drifting from the highs just through 1.3010 level and slipping back to the early lows around the 1.2985 area for the close.
  • JPY: A little bit of movement from the opening around the 111.95 area and moving into the Tokyo session before dipping back to the 111.90 level from the 112.00 area, the move through the session to the close saw a very quiet tight range around the 111.93 level.
  • AUD: Limited range because of the bank holidays around the world, opening around the 0.7150 level the market moved through the day around the level with a light test through towards the 0.7160 level into the grey hour in London before slowly slipping back in patchy trading to hold around the opening levels to the close.
  • EUR: The Euro moved higher through into the London session pushing from the opening around the 1.1230 level and apart from a minor 15 pip drop in mid-Tokyo testing through to the 1.1233 area before starting the rise again into the grey hour and then ranging around the 1.1245 level through to the close but never having the impetus to push beyond the 1.1250 level.

 

Yesterday’s Premiership results

JPY         National CPI Core Y/Y Mar A 0.80% | C 0.70% | P 0.70%

USD       Housing Starts Mar A 1.14M | C 1.23M | P 1.16M | R 1.14M

USD       Building Permits Mar A 1.27M | C 1.30M | P 1.29M

 

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LMAX Exchange Market Commentary   Andy Harrison  

Any opinions, news, research, analyses, prices or other information ("information") contained on this Blog, constitutes marketing communication and it has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Further, the information contained within this Blog does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of, or solicitation for, a transaction in any financial instrument. LMAX Group has not verified the accuracy or basis-in-fact of any claim or statement made by any third parties as comments for every Blog entry.

LMAX Group will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. No representation or warranty is given as to the accuracy or completeness of the above information. While the produced information was obtained from sources deemed to be reliable, LMAX Group does not provide any guarantees about the reliability of such sources. Consequently any person acting on it does so entirely at his or her own risk. It is not a place to slander, use unacceptable language or to promote LMAX Group or any other FX and CFD provider and any such postings, excessive or unjust comments and attacks will not be allowed and will be removed from the site immediately.