25 May: US$ under pressure after Trump cancels Kim meeting. US Durable Goods in focus, Friday.

By | May 25, 2018

 

It has been another busy day on Thursday, with safe haven demand in the currency markets seeing a rush into the Yen and the Chf, although the other currency pairs are mostly rangebound. Sterling did see a run higher after better than expected UK Retail Sales but then ran out of steam, while the Euro remains heavy, just above its recent trend lows. The DXY fell by 0.23% to 93.69, after hitting a high of 93.91, as the dollar came under some pressure after the US existing home sales fell 2.5% in April to 5.46 mio against expectations of a fall of 5.56 mio. The initial jobless claims rose by 11K to a seasonally adjusted 234K for the week, missing economists’ forecast for a drop to 220K. US Yields took a hit, with the 10 Years heading back under 3% (2.98%), which did not help the dollar’s cause.

US stocks ended slightly lower after Donald Trump canceled a planned summit with North Korea’s Kim Jung Un. WTI settled sharply lower, down 1.5%, after reports that OPEC is considering scaling back production cuts to counter a possible shortage in global supplies weighed on sentiment. Gold jumped more than 1% on the back of rising safe-haven demand after Trump cancelled his meeting with President Kim.

Friday will begin with the Tokyo CPI, although there is then nothing to go on until the German IFO Business Climate/Expectations and the Preliminary UK GDP (exp0.1%qq, 1.2%yy) and Total Business Investment (exp 0.2%qq, 2.3%yy). The focus in the US will be on the April Durable Goods Orders (exp -1.4%, Ex Transport +0.5%). There will also be plenty of CB Speakers, including The Feds Powell, Kaplan, Evans Bostic; The BOEs Carney and Coeure and the Buba’s Weidmann. Have a good weekend.

CURRENCIES
EURUSD: 1.1724
Res  1.1750  1.1790  1.1830
Sup  1.1675  1.1625  1.1580
USDJPY: 109.28
Res  109.50  109.75  110.05
Sup  109.00  108.75  108.55
GBPUSD: 1.3384
Res  1.3405  1.3420  1.3440
Sup  1.3365  1.3350  1.3330
USDCHF: 0.9911
Res  0.9930  0.9945  0.9965
Sup  0.9900  0.9885  0.9870
AUDUSD: 0.7578
Res  0.7585  0.7605  0.7620
Sup  0.7545  0.7520  0.7500
NZDUSD: 0.6931
Res  0.6945  0.6975  0.7000
Sup  0.6905  0.6870  0.6850
INDICES / COMMODITIES
S&P: 2727
Res  2735  2745  2755
Sup  2720  2710  2700
DJ30: 24802
Res  24880  24975  25080
Sup  24765  24675  24580
SPI200: 6014
Res  6030  6050  6065
Sup  6000  5985  5970
XAUUSD: 1305
Res  1310  1315  1320
Sup  1300  1295  1290
XAGUSD: 16.66
Res  16.75  16.85  16.95
Sup  16.55  16.45  16.30
WTI: 70.64
Res  71.40  72.05  72.85
Sup  70.20  69.55  68.60