Forex: Daily Outlook 30 May

on May 30, 2013


Yesterday the daily candle opened at 1.2845 and closed at 1.2947. The trading range was from 1.2837 to 1.2976. The Asian session today brought the price to a high of 1.2976. The price is currently crossing 1.2958.
A bunch of economic data for May from the Eurozone to be released today: economic sentiment indicator (expected to rise by 0.4 points to 89.0); business climate indicator (expected to increase from -0.93 to -0.87; consumer confidence, industrial confidence and services sentiment (all three expected to show an increase).

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The US calendar is offering today Q1 preliminary GDP, unemployment claims (increase expected), pending home sales, crude oil inventories and Q1 personal consumption.
During the Asian trading hours today, the pair reached 1.5180, surpassing yesterday’s high of 1.5146. The price is headed towards the 1.5200 level, where it should find resistance.

Today at 7.00 a.m. BST the UK nationwide house price index for May was announced. It came in at 0.4 percent, below the expected reading of 0.5 percent.
The pair dropped to 100.56 in the Asian trading session, continuing the decline from 103.72 towards the psychological 100 level.
No major economic data from Japan scheduled for release today.

The NIKKEI 225 has closed with a 5.07 percent drop.
Japan’s Ministry of Finance is selling ¥2.67 trillion in 0.1 percent 2-yr bonds, with average yield of 0.151 percent, compared to the prior 0.126 percent; and bid to cover ratio of 4.82 (5.27 prior).
BoJ governor Haruhiko Kuroda had said that a central bank easing is needed to stop deflation.
The Japanese government is looking to reduce the long-term unemployment by 20 percent in 5 years.

Toyota sold 3-year 0.29 percent bonds and ¥20 billion in 10-year 0.96 percent bonds during the Asian session, and Honda sold 5-year 0.55 percent bonds.
At 2.30 a.m. BST today Australia reported a 9.1 percent rise in building approvals in April, more than twice the expected increase of 4.1 percent. There had been a decrease of 5.5 percent in March. A drop of 4.7 percent in Q1 private capital expenditure was also reported, compared to the expected 0.7 percent rise. The previous quarter had shown a 2.1 percent decrease, revised from a drop of 1.2 percent. The AUD/USD dropped sharply from 0.9617 to 0.9584 immediately after the release of the economic data, and rebounded to 0.9676 later.
LME Copper prices decreased by 0.8 percent to $7201.5/MT and aluminium prices increased by 0.7 percent to $1821.0/MT yesterday.
Today’s Asian trading brought the USD/CAD price to 1.0330, below yesterday’s low of 1.0344.
At 1.30 p.m. BST Statistics Canada will release Q1 current account balance (an increase to -15.3 billion from the prior -17.3 billion projected); April RMPI is expected to come in at 0.7 percent below zero and April IPPI is expected to show no change from the prior 0.1 percent above zero.
The Asian trading today pushed the USD/CHF to the support level of 0.9566. Currently the price is residing at 0.9590.
At 6.45 a.m. BST today the Swiss federal statistics office reported a rise of 0.6 percent in Q1 GDP, compared to an estimated increase of 0.2 percent.


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