Following the Federal Reserve minutes from May meeting said "a temporary period of inflation modestly above 2%." Fed also pointed to an interest rate hike at the June meeting and did not signal to raise interest rate more. This factor combined with lower bond yield rate pressured U.S. dollar weaker on Thursday morning. USD/JPY fell hardly because yen also gets support from the increasing tension of trade war between USA and China. I suggest support line for USD/JPY at 108.75 points. I think yen may have strong buy today because of the uncertainty of cancel North Korea summit.
Major stocks market in Asia traded lower because investor worries about trade war. British pound rose up on Thursday morning after falling close to 1.330 dollar and it may hold stead above 1.330 before release U.K. first quarter GDP at 15.30 p.m. which may give negative for pound, if GDP is lower than 0.1%. I also suggest listening BoE chair speech at 20.20 p.m. which may express the current economy.
Even if U.S. dollar was weaker on Thursday but euro had internal negative factors so EUR/USD moved flatly yesterday. The euro was hampered by concerns over economic slowdown in European Union. Euro may hold above 1.170 dollar and move sideways, if German business climate at 15.00 p.m. reach the forecast at 102.7. While U.S. dollar may get good support from economic data: core durable goods orders and durable goods orders in April at 19.30 p.m., if these indices release higher than expected. Fed chair – Powell will give speech at 20.20 p.m. and investor may try to get some signal of rate hike which may rise next month.
Volume of Cryptomarket fell lowest in 1 month on Wednesday and bitcoin price fell to 7,500 USD but it try to hold steady on Thursday. In my opinion, Bitcoin may fall lower to 7,000 USD before it builds the new trend. Thailand's Bank of Ayudhya PCL successfully conducted a cross-border transaction with Standard Chartered Bank (Singapore) using the Krungsri Blockchain Interledger. Using this technology in the future improve its liquidity management efficiency and reduce their cost management," the bank said.
By Niramon Nitnitiphruet
Financial analyst, Olymp Trade.