Daily FX Market Commentary

Andy Harrison

Good Morning,

 

LMAX Close

USDJPY 108.779 | EURUSD 1.22521 | AUDUSD 0.77533 | NZDUSD 0.72327 | USDCAD 1.20642 | USDCHF 0.89519 | GBPUSD 1.41469 |

 

LMAX Highs and Lows 0500 GMT

Highs | Lows   

EURUSD               1.22605 | 1.22424

USDJPY                108.826 | 108.724

GBPUSD              1.41661 | 1.41406

USDCHF              0.89567 | 0.89448

AUDUSD              0.77945 | 0.77488

NZDUSD              0.73140 | 0.72145

USDCAD              1.20731 | 1.20463

EURCHF               1.09703 | 1.09628

EURGBP              0.86615 | 0.86515

EURJPY                133.389 | 133.142

 

For Today

 

  • GBP: A steady move through the early part of the session with the market holding the 1.4140-50 areas before finally pushing through to trade above the 1.4160 level and hold into the grey hour, Topside offers light through the 1.4200 level however, very few stops and stronger offers starting to appear through to the 1.4250 level and then increasing through to the 1.4310 area before weakness and stops appear for a break through to the 1.44 level before sentimental offers increase, downside bids light through to the 1.4100 level before stronger bids appear for any move beyond the 1.4050 level as congestion and sentimental levels appear.
  • JPY: Light trading in the USDJPY with the market opening just above the 108.75 area and limited to the 108.83 topside and 108.73 area on the downside all through the Asian session, Downside light through the 108.50 before opening the market to a new test of the 108.00 level, stronger bids into the 107.80 however, a break through the level is likely to see weak stops and breakout stops appearing and the market free to quickly test 107.50 and an old trendline then nothing until closer to the 107.00 area where stronger bids start to appear but the downside opening to Feb levels, topside offers through to the 110.00 level with light congestion through the figure level and weak stops possibly limited and stronger offers likely increasing on a move higher towards the 111.00.
  • AUD: Opening around the 0.7750 and then dominated by the RBNZ announcement with the Kiwi pulling the AUD with it on a move through from the 0.7750 opening levels to test above the 0.7790 area for the move into the grey hour, topside offers into the 0.7800 area with weak stops through the 0.7820 before opening for a new run higher and strong offers likely through the 0.7840-60 area to build for the 79 cent level. Downside bids light through the 0.7750 area and stronger bids likely continue through to the 0.7700 area before weak stops appear below the 0.7680 and a stronger 0.7650 area then holds the downside
  • EUR: Drifting from the opening to slowly test through 1.2240 area before the pull of the NZD and AUD after the RBNZ saw the Euro pushing through to the 1.2260 level for the move into the grey hour, Topside offers congested through to the 1.2300 level with weak stops limited through the 1.2320 area and long term trend line around the 1.2345 area likely to see strong offers before weak stops opening the topside to further gains through the 1.2400 level.

 

Overnight News

 

NZD:

RBNZ monetary policy review statement comparison shows last paragraph missing: Prepared to provide additional stimulus – BBG

RBNZ leaves key interest rate unchanged at 0.25%

RBNZ’s Orr: risks are starting to become more balanced

Orr: Some of the more extreme risks now off the table

CNY:

China province plans to raise penalties for Crypto mining – BBG

AUD:

Melbourne COVID 19 outbreak grows as Victoria records 5 new cases – AUB

 

Today’s Data

NZD       Trade Balance MoM (APR) A 338m | P 33m | R 39m

NZD       Trade Balance YoY (APR) A 730m | 1,690m | R 1,700m

AUD       Construction work Done QoQ (Q1) A | C 2.2% | P -0.9%

JPY         BoJ Board Member Suzuki Speaks

NZD       RBNZ Interest Rate Decision A | C 0.25% | P 0.25%

NZD       RBNZ Rate Statement

NZD       RBNZ Press Conference

1500      FOMC Member Quarles Speaks

1530      Crude Oil Inventories A | C -1.050m | P 1321m

1800      CAD       Gov. Council Member Lane Speaks

2000      USD       FOMC Member Quarles Speaks

 

 

Premier Results

EUR       German GDP YoY (Q1) A -3.4% | C -3.3% | P -3.3%

EUR       German GDP QoQ (Q1) A -1.8% | C -1.7% | P 0.3%

EUR       German Business Expectations (MAY) A 102.9 | C 101.4 | P 99.2

EUR       German Current Assessment (MAY) A 95.7 | C 95.5 | P 94.2

EUR       German Ifo Business Climate Index (MAY) A 99.2 | C 98.2 | P 96.6

EUR       EU Leaders summit

CAD       Manufacturing Sales MoM (P) A -1.1% | P 3.5%

USD       S&P/CS HPI Composite -20 n.s.a. YoY (MAR) A 13.3% | C 12.3% | P 12.0%

USD       CB Consumer Confidence (MAY) A 117.2 | C 119.2 | P 117.5

USD       FOMC Member Quarles Speaks

USD       New Home Sales MoM (APR) A -5.9 | P 7.4%

USD       New Home Sales (APR) A 863k | C 970k | P 917k

EUR       ECB’s Lane Speaks

GBP        MPC Member Tenreyro Speaks

USD       API Weekly Crude Oil Stock A -0.439m | C -1.279m | P 0.620m

 

Best Regards

Andy

 

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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.