8 June: US$, stocks mixed, with all eyes on the upcoming G7 meeting.

By | June 8, 2018

 

The dollar slid in Asia and early European trade on Thursday, continuing its bearish bias from the previous day, weighed down by the ongoing possibility of a full-blown trade war with China, Europe, Canada and Mexico, not helped by the Mexico announcement that  it will impose a  $3 billion in tariffs on US imports in response to the latter’s triggering duties on steel and aluminium last week. The Eur remains underpinned by higher EU yields and the positive expectations ahead of next week’s ECB meeting following on from the hawkish comments from various ECB officials earlier in the week, The Aud$ reversed its gains from the previous session and is now back near 0.7600 after rejecting major trend resistance. Elsewhere, the metals were unchanged, while WTI, is higher after news that Venezuela is nearly a month behind on delivering crude to customers, causing a bottleneck and sending the price higher.

There is not a whole lot on the economic calendar for Friday and the session is likely to focus on the headlines coming from the G7 meeting in Quebec. The Meeting will follow though into Saturday, meaning that the final communique will not be available before the market re-opens on Monday – so be prepared for a weekend gap in the price action. As far as Friday is concerned, the China Trade Balance for May will be the Asian focus (exp +$32 bio Exports +10%, Imports +18.7%). The German Current Account and Trade Balance for April will be the European focus, while the US will look to the April Wholesale Inventories for guidance. Note that the China CPI (exp -0.1%mm, +3.8%yy) and PPI (1.8%yy) are due on Saturday. Have a good weekend.

CURRENCIES
EURUSD: 1.1813
Res  1.1840  1.1890  1.1935
Sup  1.1790  1.1760  1.1725
USDJPY: 109.72
Res  109.80  110.00  110.25
Sup  109.50  109.35  109.20
GBPUSD: 1.3425
Res  1.3440  1.3455  1.3470
Sup  1.3405  1.3390  1.3370
USDCHF: 0.9795
Res  0.9825  0.9845  0.9885
Sup  0.9785  0.9760  0.9725
AUDUSD: 0.7622
Res  0.7635  0.7655  0.7675
Sup  0.7595  0.7570  0.7550
NZDUSD: 0.7032
Res  0.7050  0.7070  0.7095
Sup  0.7005  0.6975  0.6945
INDICES / COMMODITIES
S+P: 2769
Res  2780  2790  2800
Sup  2755  2745  2735
DJ30.fs: 25235
Res  25325  25465  25580
Sup  25115  24995  24855
SPI200.fs: 6050
Res  6055  6075  6090
Sup  6025  6015  6005
GOLD: 1297
Res  1305  1310  1315
Sup  1290  1285  1280
XAGUSD: 16.71
Res  16.80  16.90  17.00
Sup  16.55  16.40  16.30
OIL (WTI): 65.86
Res  66.60  67.85  68.75
Sup  64.80  64.25  63.50