Forex: Daily Wrap-up 05 June

on Jun 5, 2013


Today the Spanish services PMI showed a rise to 47.3 points in May, from 44.4 in April. Analysts had expected a rise to 45.3 points. The Italian services PMI revealed a drop in May to 46.5 points from the prior 47.0, while the market had expected an increase to 47.5 points. The Eurozone final services PMI fell in May to 47.2 points from the previous reading of 47.5. Eurostat released April’s Eurozone retail sales data, which showed a drop by 0.5 percent, compared to the expected decrease of 0.2 percent. March’s value was revised down to a 0.2 percent fall, having been recorded earlier as 0.1 percent. Eurostat today also released a report on the Q1 gross domestic product of the Eurozone, showing a decrease by 0.2 percent.

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Today the US data on ADP non-farm employment change came out showing 135K in May, compared to the expected 171K. The previous number had been 113K. The Bureau of Labor Statistics announced the report on Q1 Revised Nonfarm Productivity, showing a rise by 0.5 percent, compared to the prior increase by 0.7 percent (A good sign as a drop in a workers’ productivity is equivalent to a rise in their wage. When businesses pay more for labour the higher costs are usually passed on to the consumer). The revised unit labour costs dropped by 4.3 percent in the first quarter of the year, against the expectations of a 0.5 percent rise. The US Institute for Supply Management released a report earlier today on May’s ISM Non-Manufacturing PMI, showing an increase to 53.7 points from the prior 53.1. A report on US crude oil inventories revealed a decrease by 6.3 million barrels.

From the UK today the BRC Shop Price Index came out, showing a decrease by 0.1 percent. The services PMI revealed a rise to 54.9 points in May from 52.9 in April.
The pair has been moving within a range 1.5290 to 1.5397 today and is currently sitting at 1.5370. The GBP/USD has gained one percent so far and the last hourly candle closed above the resistance level of 1.5375.

There was no significant economic data on the calendar today from Japan.
The pair has dropped today by 1.10 percent and is currently trading at 99.26. Asian trading couldn’t break the 100.45 resistance and the USD/JPY has started to decline. The level of 99.84, initially acting as a support, has been passed and become a resistance.

During the Asian session the Australian AIG Services Index showed a decrease to 40.6 points in May against the prior 44.1. The Australian Bureau of Statistics issued the Q1 GDP report, showing an increase by 0.6 percent, less than the expected 0.8 percent growth.
Statistics Canada today released economic data on building permits issued in April, which showed significant growth by 10.5 percent. Analysts had expected a drop by 2.3 percent, compared to March’s 6.0 percent increase, revised down from 8.6 percent.
There were no significant economic data releases from Switzerland today.
The pair has declined by 0.7 percent so far and may fall further.
The support level of 0.9474 is now broken with the price is trading at 0.9413 as of press time. If the daily candle doesn’t close above 0.9474, the downward movement should extend further.


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