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The week ended was soft in terms of economic calendar.
Sterling pound vs US dollar triggered some opportunities last week, with Governor Carney once reinforcing that low rates will last for some time on Tuesday and on Wednesday defied by MPC member Haldane, which considered a possible vote for an immediate interest rate hike in June. If so, it would have made a 4 – 4 voting, instead of a 5 – 3.
GBP/USD ended the week afloat the 1.27 level. It is capped above by the 20-day SMA at 1.2783, while the 100-day SMA at 1.2638 offers support. Below the previous mentioned level, the lower Bollinger band at 1.2581 will likely offer tough resistance if bears prevail next week.
The euro rose against the US dollar and finished the week knocking the 1.12 level, though still below the 20-day SMA, which stands at 1.1204, 12 pips above the closing price.
On Friday, Eurozone flash PMIs were released for June. The Manufacturing PMI rose to 57.3 from prior 57.0; Services PMI dipped lower to 54.7 from prior 56.3; and the major fall across Services prompted the Composite PMI to slip to 55.7 from prior 56.8.
The US dollar vs yen faced formidable resistance around the 111.80 last week. The previous mentioned cluster is formed by two rationale figures, the 100-day SMA at 111.79 and the upper Bollinger band at 111.97. The exchange rate tested twice that level last week, though it has been pulled-back. It is also interesting to remark that, besides that level on the upside, support seems being formed on the downside with the 55-day at 111.06 and the 20-day SMA at 110.65, with the latter mentioned SMA moving higher in the following days.
The US reported both better than expected existing home sales and new home sales in May. Existing home sales came at 5.62M offsetting a 5.55M forecast and from prior 5.57M. New home sales came at 610K offsetting a 597K forecast and from prior 569K.
The RBNZ gathered last week and left interest rates unchanged at 1.75% and Governor Wheeler said that rates will likely remain unchanged until 2019. Despite rates remaining on hold for another set of 2 years according to the Central Bank, the kiwi rose against the US dollar and is now capped by the upper Bollinger band at 0.7329 nearly 50 pips above the weekly session close price.
The USD/CAD ended the week at 1.3264. On Thursday, better than expected April retail sales pushed the exchange rate lower. On Friday, softer CPI figures in May eared losses and are unwinding the possibility of an immediate interest rate hike in July. Hints by BOC officials are less credible with core CPI YoY in May at 0.9% and the headline CPI YoY at 1.3%. Next week the exchange rate will likely put to the test the 100-day SMA at 1.3395.
Sterling pound vs US dollar triggered some opportunities last week, with Governor Carney once reinforcing that low rates will last for some time on Tuesday and on Wednesday defied by MPC member Haldane, which considered a possible vote for an immediate interest rate hike in June. If so, it would have made a 4 – 4 voting, instead of a 5 – 3.
GBP/USD ended the week afloat the 1.27 level. It is capped above by the 20-day SMA at 1.2783, while the 100-day SMA at 1.2638 offers support. Below the previous mentioned level, the lower Bollinger band at 1.2581 will likely offer tough resistance if bears prevail next week.
The euro rose against the US dollar and finished the week knocking the 1.12 level, though still below the 20-day SMA, which stands at 1.1204, 12 pips above the closing price.
On Friday, Eurozone flash PMIs were released for June. The Manufacturing PMI rose to 57.3 from prior 57.0; Services PMI dipped lower to 54.7 from prior 56.3; and the major fall across Services prompted the Composite PMI to slip to 55.7 from prior 56.8.
The US dollar vs yen faced formidable resistance around the 111.80 last week. The previous mentioned cluster is formed by two rationale figures, the 100-day SMA at 111.79 and the upper Bollinger band at 111.97. The exchange rate tested twice that level last week, though it has been pulled-back. It is also interesting to remark that, besides that level on the upside, support seems being formed on the downside with the 55-day at 111.06 and the 20-day SMA at 110.65, with the latter mentioned SMA moving higher in the following days.
The US reported both better than expected existing home sales and new home sales in May. Existing home sales came at 5.62M offsetting a 5.55M forecast and from prior 5.57M. New home sales came at 610K offsetting a 597K forecast and from prior 569K.
The RBNZ gathered last week and left interest rates unchanged at 1.75% and Governor Wheeler said that rates will likely remain unchanged until 2019. Despite rates remaining on hold for another set of 2 years according to the Central Bank, the kiwi rose against the US dollar and is now capped by the upper Bollinger band at 0.7329 nearly 50 pips above the weekly session close price.
The USD/CAD ended the week at 1.3264. On Thursday, better than expected April retail sales pushed the exchange rate lower. On Friday, softer CPI figures in May eared losses and are unwinding the possibility of an immediate interest rate hike in July. Hints by BOC officials are less credible with core CPI YoY in May at 0.9% and the headline CPI YoY at 1.3%. Next week the exchange rate will likely put to the test the 100-day SMA at 1.3395.
