SUMMARY

  • The ECB’s statements were received favorably by the market. At this time, EURUSD is up +0.31% and is trading at 1.0735.
  • Japan’s trade balance is expected at -0.64 trillion. Exports in the country are expected to increase +10.4% annually. Traders are watching the minutes of the Bank of Japan’s monetary policy meeting.
  • New housing construction in Canada was reported at 264K, improving compared to the forecast of 247K. Investment in foreign assets was presented at USD$41.16 Billion.
  • One of the most important and largest commodities traders in the world, Trafigura, leads the Fortune 500 in South East Asia. On the other hand, Singapore’s exports decreased by -0.1% in May 2024.

 

Main events:

  • CPI in the eurozone
  • Eurogroup meeting
  • Retail sales in the United States
  • American industrial production
  • Weekly API Crude Oil Stocks
  • Minutes of the monetary policy meeting of the Bank of Japan

EURUSD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$539
  • Example: 100 pips change in EURUSD price = USD1,000 potential PL.
  • Support 1: 1.0729
  • Support 2: 1.0726
  • Resistance 1: 1.0736
  • Resistance 2: 1.0740

Fundamental Analysis

  • The ECB’s statements were received favorably by the market. At this time, EURUSD is up +0.31% and is trading at 1.0735.
  • According to Rabobank analysts, the dollar strengthened due to the increase in long positions in EURUSD.
  • The ZEW investor confidence index in Germany is expected to be at 49.6, i.e. in the optimism zone.
  • The most important data of the day is the CPI of the euro zone, which is expected at 2.6% annually. If it falls below, it could spark a rally in the stock market.
  • US retail sales are expected to increase 0.3% monthly. The industrial production index is also expected to increase by +0.3% monthly.
  • EURUSD is breaking out of the support zone. If it manages to cross the 1.0750 level, the path is clear towards 1.0800. The RSI is at 66, close to the overbought zone.

USDJPY

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$499
  • Example: 100 pips change in USDJPY price = USD1,000 potential PL.
  • Support 1: 157.49
  • Support 2: 157.40
  • Resistance 1: 157.69
  • Resistance 2: 157.80

Fundamental Analysis

  • Japan’s trade balance is expected at -0.64 trillion. Exports in the country are expected to increase +10.4% annually. Traders are watching the minutes of the Bank of Japan’s monetary policy meeting.
  • At this moment the USDJPY is currently correcting -0.06% and is trading at 157.60. The currency remains close to support level 1. The RSI is at 48.22, in a neutral zone, which could correct some additional points. Moving averages are neutral.
  • The Yen is currently losing strength against the USD due to reports of wages without growth. The USD, for its part, gains ground due to the increase in long positions in assets traded in USD.
  • The price remains close to the target level of 158, which could begin to materialize once the purchasing volume in the currency increases.

USDCAD

Specifications

  • Leverage: 200
  • Units: 100,000
  • Margin requirement: USD$686
  • Example: 100 pips change in USDCAD price = USD1,000 potential PL.
  • Support 1: 1.3731
  • Support 2: 1.3726
  • Resistance 1: 1.3739
  • Resistance 2: 1.3742

Fundamental Analysis

  • New housing construction was reported at 264K, improving compared to the forecast of 247K. Investment in foreign assets was presented at USD$41.16 Billion, exceeding the expectation of USD$12.30 Billion.
  • At this moment the USDCAD is rising +0.10% and is trading at 1.3736. The currency started rising from the support of 1.3716. The volume of purchases continues to increase. The price could climb towards the resistance of 1.3760. The RSI is at 51.98, in the neutral zone, which confirms the bullish trend. Moving averages indicate buy.
  • The Canadian government has blocked Chinese exploitation contracts for rare earths on its territory.
  • Scotiabank analysts are bearish on the Canadian stock market.
  • According to Vanguard, the FED’s restriction will mean that Canada will not reduce interest rates for the moment.

SOURCES

  • Thomson Reuters
  • Market watch
  • Bloomberg
  • Tradingview

 

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