Today's Important Indicators
Risk sentiment from European politics supported the upward break of 94.20 in the US Dollar Index yesterday, a 7-month high, despite both most liquid markets were closed. Trading volumes were high considering the banks in the UK and US were closed as Italian political risk pushed Euro lower. Oil traded lower too but held firm above $66/b while Gold was unchanged. Not many eco events today, session likely to show if Euro flows move to US Dollar or Yen.
MARKET MOVERS
EUR/USD – Euro down on Italian weekend politics, price halts at $1.16… but may fall lower. Euro-Dollar broke the 38.20% Fibonacci confluence level decisively yesterday amid Italy’s drama on the selection of Finance Minister. With $1.1545 being the next strong support and no major eco data reported from the EU this week, the Euro is likely to experience the impact of political risk in the days ahead.
EURUSD DAILY CHART
GBP/USD – Investor sentiment on the sidelines during UK bank holiday, Pound remains under pressure. Cable traded sideways in the Monday session as risk appetite remained at subdued levels during UK’s Spring Bank Holiday. Price bounced off between 1.3339 and 1.3295 while concerns surrounding an August hike prevail. Investors could lead price lower towards the 50% Fibonacci retracement, should economic growth confidence weaken.
GBPUSD DAILY CHART
USD/JPY – Uncertainty surrounding US-NK summit pushes Dollar lower against Yen, 110 history. The dollar moved some 60 pips lower against Yen on Monday despite a widely stronger momentum as traders jumped into the safe-haven Yen following ceaseless doubts surrounding the upcoming summit on June 12. Price closed below 109.40 and is likely to decline further towards the Fibonacci confluence level 100 pips lower.
USD/JPY DAILY CHART
USOIL – Oil falls further following massive correction, yet price firm above 66/b. Oil tested bears’ power for another session yesterday as end of month flows kicked in. Price moved lower to the golden ratio of 61.80% near $66/b, while the strong support at the said level held firm. With BoC rates, API and EIA weekly reports, this is going to be an interesting week for crude oil.
CRUDE OIL 4-HOUR CHART
XAU/USD – Gold mixed as investors eye Yen for safe-haven, price far from indicating clear decline. Gold was rangebound in a quiet Monday session, yet uncertainty surrounding the US-NK summit remains an issue, with investors seeming to have preferred Yen as the safe haven option for the day. Although price struggles to break through $1300/oz, a break remains likely to occur sooner or later this week.
XAUUSD DAILY CHART
US Indexes – DJ and S&P 500 ended 0.24% lower.
European Indexes – DE 30 plunged 1.03% lower, UK 100 plummeted by 0.84%.
Asian Indexes - ASX 200 rose by 0.13%, Nikkei 225 fell by 0.55%, Hang Seng trades 1.00% lower.
US Equities – Exxon Mobil nosedived by 1.94%, Amazon appreciated by 0.44%.
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