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Comments and Forex-analytics from FBS Brokerage Company

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EUR is up on Greek polls

Monday, May 28, 2012 - 07:01

 

The single currency opened with a gap up versus the greenback after setting new 2-year minimum at $1.2495 on Friday. Today EUR/USD managed to strengthen to $1.2600.

 

The market’s sentiment improved as the polls showed that the pro-bailout party (New Democracy) in Greece was 5.7 percentage points over Syriza, the main opposition force to the bailout ahead of the second elections due on June 17.

 

According to data from CFTC (Commodity Futures Trading Commission), the number of shorts on EUR/USD reached the highest level since 1999 of 195K. That means that speculators may trim short positions on any sighs that Greek political situations improved.

 

The uncertainty, however, remains high, so the baseline scenario is still for euro to slide to $1.20.

 

Resistance: $1.2620 (May 24 maximum), $1.2820 (May 22 maximum).

 

Support: $1.2495 (May 25 minimum), $1.2483 and $1.2442.

 

daily_eurusd_11-03.gif

Chart. Daily EUR/USD

 

EUR is up on Greek polls // FBS Markets Inc.

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BOTMUFJ: bearish on EUR/JPY

Monday, May 28, 2012 - 07:49

 

The single currency maintained last week its bearish bias versus Japanese yen bottoming at 99.35.

 

Analysts at Bank of Tokyo-Mitsubishi UFJ are bearish on EUR/JPY.

 

The specialists point out that euro breached 76.4% Fibonacci retracement of its advance from the January minimum and March maximum in 100 yen area.

 

In their view, the pair may slide to 97.04 (January minimum).

 

daily_eurjpy_11-56.gif

Chart. Daily EUR/JPY

 

BOTMUFJ: bearish on EUR/JPY // FBS Markets Inc.

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Westpac: advises for trading NFP

Monday, May 28, 2012 - 08:22

 

May Non-Farm Payrolls release is approaching (Friday, June 1, 12:30 p.m. GMT). The report will be especially closely watched taking into account weak US economic rebound.

 

Consensus forecast is +150K after +115K in April.

 

nfp2.png

Data from forexfactory.com

 

Analysts at Westpac say that if NFP exceeds 150K one should sell USD/CAD. If the readings come in around 115K or lower, the trade should be quite the opposite as the greenback will strengthen on its safe haven status.

 

The specialists think that the odds of the first outcome are higher. The bank underlines that manufacturing that usually precedes the payroll data will not be coming out, increasing the chances that forecasters will not be able to adjust for an upside shift. As a result, Westpac recommends selling USD/CAD at 1.0320, stopping 1.0450 and targeting 1.0075 (200-day MA). However, we would recommend you to be really careful out there as USD/CAD looks rather strong from the technical perspective.

 

daily_usdcad_12-27.gif

Chart. Daily USD/CAD

 

Westpac: advises for trading NFP // FBS Markets Inc.

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Euro: is there any cope for rebound?

Monday, May 28, 2012 - 09:15

 

Bank of Tokyo-Mitsubishi UFJ insist that the fact that euro’s is now so oversold can provoke a rebound to $1.2640, $1.2680/85 and possibly to $1.2720 if the bulls manage to push EUR/USD above $1.2610. At the same time, the specialists can’t help admitting that the resolute progress is Europe is unlikely anytime soon. The recovery, if there is such, will certainly remain a correction. BOTMUFJ still see euro sliding to $1.28 by the end of Q2, to $1.25 – by the end of Q3, to $1.23 – by the year-end and to $1.18 by the end of Q1, 2013.

 

Nomura specialists underline that the overall economic weakness and political crisis ought to be enough to weigh on euro. The specialists warn that there’s evidence that euro zone investors are exiting themselves and buying other currencies such as US dollar. In their view, euro’s ability to rebound will be limited, so one better sell around $1.26 stopping at $1.2850 and looking for a move to $1.20.

 

daily_eurusd_13-14.gif

Chart. Daily EUR/USD

 

Euro: is there any cope for rebound? // FBS Markets Inc.

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May 28 - June 1: main events of the week

Monday, May 28, 2012 - 09:45

 

week_ahead.jpg

 

Monday, May 28 – Tuesday, May 29

 

Japan: According to analysts, Japan’s household spending in April may increase by 2.5% vs. a 3.4% growth in March. April retail sales are expected to grow by 6.2% after a 10.3% growth in March.

 

US: CB consumer confidence in May is forecasted to reach 69.6, indicating a general optimism. In April consumer confidence fell to 69.2 while was expected to reach 69.9. The small decrease was caused by a moderation in consumers’ short-term outlook despite improvement in current conditions assessments.

 

Euro zone: Italy holds a T-bill auction.

 

Wednesday, May 30

 

Australia: Seasonally adjusted retail sales growth may slow down to 0.2% in April after a 0.9% increase in March, indicating decreased consumer spending. Construction work done in Q1 is forecasted to grow by 3.1% after a 4.6% decline in Q4 (lowest since 2001).

 

Switzerland: KOF Economic Barometer index is forecasted to increase to 0.44 in May, indicating that the Swiss Economy is headed towards an expansion in 2012.

 

Euro zone: Italy holds a 10-year bond auction; the previous bond auction, which was held a couple of weeks ago, went well, but the rate reached 5.66%. Later in the day ECB

 

President Mario Draghi will be speaking in Brussels with the potential for a hint toward the ECB's actions in front of the following week's rate decision.

 

US: Pending home sales in April are expected to remain unchanged after a 4.1% surge in March. U.S. holds a T-bill auction.

 

Thursday, May 31

 

New Zealand: NBNZ business confidence for May index is released (in April index reached 35.8). Most analysts expect the economic conditions to improve in May due to a surge in retail and services sectors. However, strong national currency keeps bugging exporters.

 

Australia: Building approvals in April to increase by 0.7% after a 7.4% growth in March. Private capital expenditure in Q1 may surge by 4.1% after a 0.3% contraction in Q4, indicating an improved economic health.

 

US: A bunch of important US data will be released. ADP estimate of US non-farm payrolls in May is expected to reach 139K after 119K in April. Preliminary GDP release is expected to show a 1.9% growth in Q1 compared with a 2.2% growth in Q4, indicating that the US economy is not strong enough to drive global growth on its own. Chicago PMI in May is forecasted to increase to 56.8 vs. 56.2 in April. A small decline in unemployment claims during the last week is expected (369K vs. 370K).

 

Euro zone: German retail sales in April are expected to increase by 0.2% after a 1.6% surge in March; number of unemployed people in April may decline by 7K. French consumer spending in April may grow by 0.3% after a sharp decline in March. Euro Area Flash Estimate of Annual Inflation in May is expected to decline slightly to 2.5%. If the inflation rate estimate will change direction and increase, it may lower the chances of the ECB interest rate to remain low. Ireland holds a referendum on EU fiscal compact. The vote is crucial as it determines a crossroad for Ireland: the ‘Yes’ vote to the treaty could bring economic progress and financial stability together with unavoidable austerity measures. The ‘No’ vote will enhance downward pressure on the common currency.

 

Friday, June 1

 

China: Manufacturing PMI is forecasted to drop to 52.1 in May from 53.3 in April (reading above 50 indicates industry expansion).

 

Switzerland: Retail sales growth may slow down to 3.6% compared with a 4.2% growth in April.

 

Great Britain: According to forecasts, manufacturing PMI will decrease to 49.7 in May from 50.5 in April, indicating industry contraction and augmenting concerns on the U.K. economic conditions. Great Britain holds a 10-year bond auction.

 

Canada: GDP in March is expected to grow by 0.3% after the Canadian economy unexpectedly contracted by 0.2% in February.

 

US: Analysts expect the U.S. non-farm payrolls to increase by 152K. However, in April the labor market didn’t fulfill expectations rising only by 115K, far below the 172K consensus forecast. The March unemployment rate is predicted to remain unchanged at 8.1%. The unemployment declined to 8.1% in April from 8.2% in March, despite lower NFP job gains. The ISM manufacturing PMI in May is expected to drop slightly to 54.1 compared with 54.8 in April. However, the Markit index showed a slide to 53.9 in May.

 

May 28 - June 1: main events of the week // FBS Markets Inc.

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Hopes for BOJ near-term easing are dashed

Monday, May 28, 2012 - 10:37

 

The greenback declined versus Japanese yen recoiling down from the downtrend resistance line. It happened as the minutes of the Bank of Japan’s April 27 meeting (when Asset Purchase Program was increased) ruined the speculation that the central bank will boost monetary easing.

 

The BOJ is carefully trying to tell markets that the large-scale stimulus measures in February and April were exceptional and won't be easily repeated. The central bank acted to decrease expectations of frequent easing, though as yen surged reacting at the news, so that Governor Masaaki Shirakawa had to emphasize that there was no change to the bank's powerful easing stance.

 

The Bank of Japan has to buy 20 trillion yen more of government bonds by June 2013. This month, however, Japanese monetary authorities failed to meet their asset-buying targets. This means that it may be difficult for the central bank to prop up the APP as often as earlier. In addition, even though the inflation goal of 1% is still far away (consumer prices added 0.2% in March y/y), the interest rates are already extremely low, while the markets are drowned with cash, so the odds are additional easing won’t be much of a help.

 

Analysts at Credit Suisse claim that the BOJ actions confuse the markets: “What markets want to hear is not what Shirakawa thinks is right but the BOJ's strong determination to beat deflation.”

 

daily_usdjpy_14-41.gif

Chart. Daily USD/JPY

 

Hopes for BOJ near-term easing are dashed // FBS Markets Inc.

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Commerzbank: comments on EUR/USD

Monday, May 28, 2012 - 11:55

 

Here’s another piece of bearish comments about EUR/USD.

 

Technical analysts at Commerzbank point out that the single currency closed last week at below the 78.6% Fibonacci retracement of its move from June 2010 minimum to 2011 May maximum. The specialists also note that one may spot some divergence of the daily RSI. All this means that that there will be a decline after a slight rebound.

 

Resistance for EUR/USD is found at $1.2681 and $1.2796/1.2825 (interim maximum and Fibonacci retracement of advance from January minimums to February maximums). Support lies at $1.2490 and $1.2067 (55-month MA). In the longer term euro could target $1.1876 (2010 minimum) and $1.1641 (2005 minimum).

 

daily_eurusd_15-59.gif

Chart. Daily EUR/USD

 

Commerzbank: comments on EUR/USD // FBS Markets Inc.

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BBH: Aussie’s prospects may improve

Monday, May 28, 2012 - 21:29

 

Today Australian dollar bounced versus its US counterpart on improved risk sentiment.

 

Analysts at Brown Brothers Harriman claim that Australian dollar has poor prospects on the fundamental part as the markets remain all in all in the risk-aversion mode and expect more easing by the Reserve Bank of Australia.

 

At the same time, the specialists underline that AUD/USD didn’t breached support provided by November minimums in the 0.9660 area, although euro hit 2-year low an equities declined. If Aussie manages to hold for a while, the outlook for the pair will become better as some technical indicators may turn in its favor.

 

Resistance for AUD lies in the 0.9930 zone (May 22 maximum). There’s also resistance at 0.9875 (Ichimoku Cloud at H4 chart).

 

daily_audusd_17-37_(2).gif

Chart. Daily AUD/USD

 

BBH: Aussie

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May 29: currencies in focus

Tuesday, May 29, 2012 - 06:29

 

rus.jpg

 

Today’s trading day began with risk aversion. EUR/USD is testing $1.2500 on the downside staying close to 2-year minimum which was hit on Friday.

 

GBP/USD is consolidating in the $1.5630/5730 area after last week’s sharp decline.

 

AUD/USD dipped to 0.9800 as Australian markets fell, but then managed to return to 0.9860 during the Asian session.

 

USD/JPY edged a bit higher once again approaching downtrend resistance line. A bunch of important data was released early Tuesday in Japan. Unemployment rate slightly increased in April to 4.6%. Japan’s retail sales keep rising for 5th consecutive month (a 5.8% growth), while household spending – for 3rd consecutive month (a 2.6% growth).

 

CHF retains its strength despite the SNB’s President Thomas Jordan yesterday hinted at the possibility of introducing capital controls on foreign deposits, a measure which hasn't been used since the 1970s. This means that despite the threats of the nation’s monetary authorities traders still want to hold Swiss currency.

 

Events to watch:

 

Euro zone: Germany will announce key inflation results for May: experts anticipate 0.1% decline. Italy holds a T-bill auction (the market will be also awaiting Italian 10-year bond auction tomorrow).

 

Britain: CBI index of retail sales may fall from -6 in April to -7 in May.

 

US: Case-Shiller HPI is seen losing 2.7% in March (y/y). CB consumer confidence in May is forecasted to reach 69.6, indicating a general optimism. In April consumer confidence fell to 69.2 while was expected to reach 69.9. The small decrease was caused by a moderation in consumers’ short-term outlook despite improvement in current conditions assessments.

 

May 29: currencies in focus // FBS Markets Inc.

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Citigroup: trading GBP/AUD

Tuesday, May 29, 2012 - 07:04

 

Analysts at Citigroup recommend going long on the sterling against the Australian dollar. In their view, GBP/AUD may fall to A$1.53 (50% Fibonacci retracement from Feb. 15 - May 23 rally).

 

According to specialists, the Aussie is currently oversold due to risk aversion (last week number of short positions on AUD/USD reached its maximum since September 2008). Analysts underline that before the selloff, started on May 23, market participants went long, but now the situation seems to change.

 

daily_gbpaud_29.05_11.01.gif

Chart. Daily GBP/AUD

 

Citigroup: trading GBP/AUD // FBS Markets Inc.

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Key options expiring today

Tuesday, May 29, 2012 - 07:04

 

Market prices tend to move towards the strike price at the time large vanilla options (ordinary put and call options) expire. It happens (all things equal) as each side of the deal seeks to hedge its risk exposure. This action is most noticeable ahead of 10 a.m. New York time when the majority of options expire (2 p.m. GMT).

 

Here are the key options expiring today:

 

EUR/USD: $1.2500 (large), $1.2550, $1.2625, $1.2630, $1.2650, $1.2700;

USD/JPY: 79.00, 79.25, 79.30, 80.00, 81.00;

EUR/GBP: 0.8000;

AUD/USD: 0.9860, 0.9865, 0.9875, 0.9900, 0.9950;

USD/CAD: 1.0230.

 

2012-04-06t134030z_3_cbre83418ap00_rtroptp_3_business-us-markets-stocks.photoblog500.jpg

Photo from Reuters

 

Key options expiring today // FBS Markets Inc.

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Standard Chartered lowered forecast for EUR

Tuesday, May 29, 2012 - 08:34

 

Economists at Standard Chartered claim that Greece is now more likely to leave the euro area than to stay in it. In their view, that means that the current recession in Europe may deepen.

 

Such assumptions made the specialists revise down their forecasts for EUR/USD by the year-end from $1.32 to $1.18. According to the bank, euro will hit this mark if Greece is the only nation to leave the currency bloc. If other problem nations depart, the single currency may slump to $1.08 by the end of 2012.

 

At the same time, Standard Chartered still believes that the latter won’t happen as the European Central Bank and other member countries will come up with an effective firewall to stop the contagion after Greece quits euro. The analysts think that the ECB would respond to a Greek exit through significant monetary easing, so euro will surely keep depreciating.

 

weekly_eurusd_12-36.gif

Chart. Weekly EUR/USD

 

Standard Chartered lowered forecast for EUR // FBS Markets Inc.

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GBP/JPY may keep declining

Tuesday, May 29, 2012 - 09:24

 

Technical analysts at Gaitame.com Research Institute expect British pound to lose more versus Japanese yen.

 

The specialists point out that GBP/JPY is now hovering right above 200-day MA in the 124.20 area.

 

If sterling breaches this support, the pair will drift down to 123.48 (61.8% Fibonacci retracement of the advance from January 13 minimum to March 21 maximum) and 122.77 (December 22 maximum).

 

daily_gbpjpy_13-23.gif

Chart. Daily GBP/JPY

 

GBP/JPY may keep declining // FBS Markets Inc.

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Markets keep choosing US dollar

Tuesday, May 29, 2012 - 17:11

 

The greenback has risen against its 16 major counterparts from last year low in July. These days CDS on the U.S. debt are trading less than 100 b.p., indicating the risk is close to zero. The greenback remains resilient even despite the two rounds of quantitative easing, launched by the Fed between December 2008 and June 2011.

 

However, the main driver for the U.S. dollar’s strength is the sharp decline of the single currency. The resumed uncertainty in the euro zone saps the demand for euro-denominated debt on account of the low quality of the assets. Moreover, the need of the financial institutions to comply with Basel III standards also supports the greenback.

 

In the last quarter of 2011 the dollars share in the global foreign-exchange reserves surged to 62% (maximum since June 2010). According to analysts, euro may rebound before June 17 (Greek elections), because these days it is strongly oversold. However, in a longer period EUR/USD is expected to resume the downtrend.

 

cofer_dollars.png

Chart. Allocated foreign exchange reserves in US dollars

 

Markets keep choosing US dollar // FBS Markets Inc.

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RBS: trading GBP/USD

Tuesday, May 29, 2012 - 19:52

 

Analysts at RBS recommend going long on GBP/USD targeting at $1.5820/1.5929 and with a stop at $1.5606.

 

In their view, the downtrend of the cable has definitely slowed down. According to specialists, it’s too early to tell the trend has become bullish, because the signs of improvement are too modest. However, a close above $1.5674 (current level and a 5-day МА) would indicate a trend reversal.

 

Support:

1.5666 (38.2% Fibonacci retracement from a Jan.-Feb. rally);

1.5606 (March minimum);

1.5580 (50% Fibonacci retracement);

1.5504 (61.8% Fibonacci retracement).

 

Resistance:

1.5767 (23.6% Fibonacci retracement);

1.5820 (strong March support);

1.6000 (psychological).

 

daily_gbpusd_29.05_15.55.gif

Chart. Daily GBP/USD

 

RBS: trading GBP/USD // FBS Markets Inc.

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USD/JPY: technical comments

Tuesday, May 29, 2012 - 21:06

 

The USD/JPY cross keeps trading on a downside despite the fact that today it edged a bit higher once again. Analysts at Standard Chartered expect USD/JPY to stay between 79.00 and 81.00 yen until the risk sentiment improves. In their view, the pair may rise to 83.00 yen on positive Greek vote results, improved U.S. economic data and a monetary policy easing from Bank of Japan. Strategists at UBS opine the Bank may intervene if USD/JPY falls below 78.00.

 

Support:

79.35 (May 24 minimum);

79.21 (May 23 minimum);

79.16 (61.8% Fibonacci retracement from Jan. – Feb. rally);

79.06 (May 21 minimum).

 

Resistance:

79.83 (May 25 maximum);

80.08 (May 23 maximum);

80.15 (May 22 maximum).

 

Early Tuesday a bunch of important data was released in Japan. Unemployment rate slightly increased in April to 4.6%. Japan’s retail sales keep rising for 5th consecutive month (a 5.8% growth), while household spending – for 3rd consecutive month (a 2.6% growth).

 

Later this week watch for Japan’s data releases:

• Wednesday: manufacturing PMI; BoJ Governor M.Shirakawa speaks

• Thursday: preliminary industrial production; housing starts

• Friday: capital spending

 

daily_usdjpy_29.05_17.21.gif

Chart. Daily USD/JPY

 

USD/JPY: technical comments // FBS Markets Inc.

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May 30: economic background

Wednesday, May 30, 2012 - 05:47

 

rus.jpg

 

The pair EUR/USD has once again renewed 2-year minimum versus the greenback and tested today the levels below $1.2500. The market’s focus has slightly shifted from Greece to Spain.

 

The Financial Times reported citing unidentified officials that the ECB rejected the plan of Spanish government to recapitalize BFA-Bankia, the nation’s third- biggest lender, which has been nationalized earlier this month through an injection of treasury debt instead of cash. Spanish 10-year bond yields rose yesterday to the maximal level since November getting close to the critical level of 7%.

 

Risk sentiment was also affected by the fact that Chinese authorities have no plan to introduce large-scale stimulus measures to support growth. AUD/USD dipped below $0.9800. Aussie was also hurt by discouraging retail sales data (-0.2% m/m in April). USD/JPY is little changed for the second day trading just under downtrend resistance line.

 

Events to watch today:

 

Switzerland: KOF Economic Barometer index is forecasted to increase to 0.44 in May, indicating that the Swiss Economy is headed towards an expansion in 2012.

 

Euro zone: Italy holds a 10-year bond auction. The previous one, which took place a couple of weeks ago, went well, but the interest rate reached 5.66%. Later in the day ECB President Mario Draghi will be speaking in Brussels and may unveil the central bank's position ahead of the rate decision next week.

 

US: Pending home sales in April are expected to remain unchanged after a 4.1% surge in March.

 

May 30: economic background // FBS Markets Inc.

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Key options expiring today

Wednesday, May 30, 2012 - 06:22

 

Market prices tend to move towards the strike price at the time large vanilla options (ordinary put and call options) expire. It happens (all things equal) as each side of the deal seeks to hedge its risk exposure. This action is most noticeable ahead of 10 a.m. New York time when the majority of options expire (2 p.m. GMT).

 

Here are the key options expiring today:

 

EUR/USD: $1.2450, $1.2475, $1.2600, $1.2675 and $1.2700;

USD/JPY: 79.50 and 80.00;

EUR/JPY: 100.00;

AUD/USD: $0.9705 and $0.9800;

GBP/USD: $1.5650, $1.5735 and $1.5800;

EUR/GBP: 0.8000;

USD/CAD: 1.0200.

 

2012-04-06t134030z_3_cbre83418ap00_rtroptp_3_business-us-markets-stocks.photoblog500.jpg

Photo by Reuters

 

Key options expiring today // FBS Markets Inc.

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Gloomy days for the euro area

Wednesday, May 30, 2012 - 07:14

 

The fundamentals for the single currency remain bad and the majority of experts see EUR/USD declining to $1.20 or even to the parity level. For example, Commerzbank targets 55-month MA at $1.2067.

 

Euro tries to edge up this week as the Greece's pro-bailout parties regained an opinion poll lead ahead of the elections on June 17, but failed to overcome resistance at $1.2625 (January minimums) showing that the bulls are extremely weak. More negative news added to the poor sentiment such as the problems with Spanish banks recapitalization and the nation’s downgrade by Egan-Jones Ratings.

 

Some specialists say that there may be some positive developments at EU summit on June 13, just a few days ahead of the Greek elections, as the European authorities will feel the need to something to persuade Greeks say ‘yes’. Most Greeks want to see the terms of an international financial rescue revised even as they acknowledge that not abiding by austerity measures required for the funds may lead to the country leaving the euro area.

 

Societe Generale notes that the situation in Greece is already terrible: unemployment reached 21.7%, while GDP is contracting by 7.7%. The biggest Greek lender NBG claims that is the nation leaves the currency union, its GDP will contract by at least 22%, jobless rate – rise to 34%, inflation – climb to 32% and lending rates – surge to 37% with new drachma devalued by around 65%.

 

In the nearer term the markets will be looking at ECB’s meeting next week. Analysts at Standard Chartered claim that the central bank to cut its benchmark rate one more time by 25 bps to 0.75% in Q3 before going on hold.

 

daily_eurusd_30-05.gif

Chart. Weekly EUR/USD

 

Gloomy days for the euro area // FBS Markets Inc.

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Commerzbank: USD/CHF broke above resistance

Wednesday, May 30, 2012 - 11:18

 

Technical analysts at Commerzbank note that the greenback has at last managed to overcome resistance in the 0.9572/95 area (January maximums) trading versus Swiss franc, so the pair USD/CHF reached new 2012 highs and March 2008 minimum at 0.9636.

 

The specialists think that US currency may climb to 0.9950. In their view, support for the pair will be found at 0.9529/00 (May 28 minimum, May 18 maximum), 0.9368/35 (May 22 minimum, March maximums) and 0.9478 (Ichimoku Cloud support at H4 chart).

 

daily_usdchf_11-34.gif

Chart. Daily USD/CHF

 

Commerzbank: USD/CHF broke above resistance // FBS Markets Inc.

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Bank of America: comments on USD/CAD

Wednesday, May 30, 2012 - 14:51

 

Analysts of Bank of America expect the Canadian dollar to fall to its lowest level since October as commodity prices keep declining. Strategists recommend going long on USD/CAD at current levels, targeting at C$1.0528 and with a stop at C$0. 9950.

 

Specialists note that raw materials account for half of Canada’s export revenue. The CRY (CRB) commodity index fell below 281 (the lowest level since September 2010). Moreover, specialists at Bank of America forecast a further decline to 257 in a near-term.

 

Net long positions on the Canadian dollar declined twofold (70K on May 4 vs. 38K on May 22). According to analysts, net longs were opened in February - March when the pair was trading at C$1.0053-0.9700. As a result, a further downward movement of the cross is expected.

 

daily_usdcad_30.05_10.54.gif

Chart. Daily USD/CAD

 

Bank of America: comments on USD/CAD // FBS Markets Inc.

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    • Date: 11th July 2025.   Demand For Gold Rises As Trump Announces Tariffs!   Gold prices rose significantly throughout the week as investors took advantage of the 2.50% lower entry level. Investors also return to the safe-haven asset as the US trade policy continues to escalate. As a result, investors are taking a more dovish tone. The ‘risk-off’ appetite is also something which can be seen within the stock market. The NASDAQ on Thursday took a 0.90% dive within only 30 minutes.   Trade Tensions Escalate President Trump has been teasing with new tariffs throughout the week. However, the tariffs were confirmed on Thursday. A 35% tariff on Canadian imports starting August 1st, along with 50% tariffs on copper and goods from Brazil. Some experts are advising that Brazil has been specifically targeted due to its association with the BRICS.   However, the President has not directly associated the tariffs with BRICS yet. According to President Trump, Brazil is targeting US technology companies and carrying out a ‘witch hunt’against former Brazilian President Jair Bolsonaro, a close ally who is currently facing prosecution for allegedly attempting to overturn the 2022 Brazilian election.   Although Brazil is one of the largest and fastest-growing economies in the Americas, it is not the main concern for investors. Investors are more concerned about Tariffs on Canada. The White House said it will impose a 35% tariff on Canadian imports, effective August 1st, raised from the earlier 25% rate. This covers most goods, with exceptions under USMCA and exemptions for Canadian companies producing within the US.   It is also vital for investors to note that Canada is among the US;’s top 3 trading partners. The increase was justified by Trump citing issues like the trade deficit, Canada’s handling of fentanyl trafficking, and perceived unfair trade practices.   The President is also threatening new measures against the EU. These moves caused US and European stock futures to fall nearly 1%, while the Dollar rose and commodity prices saw small gains. However, the main benefactor was Silver and Gold, which are the two best-performing metals of the day.   How Will The Fed Impact Gold? The FOMC indicated that the number of members warming up to the idea of interest rate cuts is increasing. If the Fed takes a dovish tone, the price of Gold may further rise. In the meantime, the President pushing for a 3% rate cut sparked talk of a more dovish Fed nominee next year and raised worries about future inflation.   Meanwhile, jobless claims dropped for the fourth straight week, coming in better than expected and supporting the view that the labour market remains strong after last week’s solid payroll report. Markets still expect two rate cuts this year, but rate futures show most investors see no change at the next Fed meeting. Gold is expected to finish the week mostly flat.       Gold 15-Minute Chart     If the price of Gold increases above $3,337.50, buy signals are likely to materialise again. However, the price is currently retracing, meaning traders are likely to wait for regained momentum before entering further buy trades. According to HSBC, they expect an average price of $3,215 in 2025 (up from $3,015) and $3,125 in 2026, with projections showing a volatile range between $3,100 and $3,600   Key Takeaway Points: Gold Rises on Safe-Haven Demand. Gold gained as investors reacted to rising trade tensions and market volatility. Canada Tariffs Spark Concern. A 35% tariff on Canadian imports drew attention due to Canada’s key trade role. Fed Dovish Shift Supports Gold. Growing expectations of rate cuts and Trump’s push for a 3% cut boosted the gold outlook. Gold Eyes Breakout Above $3,337.5. Price is consolidating; a move above $3,337.50 could trigger new buy signals. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Back in the early 2000s, Netflix mailed DVDs to subscribers.   It wasn’t sexy—but it was smart. No late fees. No driving to Blockbuster.   People subscribed because they were lazy. Investors bought the stock because they realized everyone else is lazy too.   Those who saw the future in that red envelope? They could’ve caught a 10,000%+ move.   Another story…   Back in the mid-2000s, Amazon launched Prime.   It wasn’t flashy—but it was fast.   Free two-day shipping. No minimums. No hassle.   People subscribed because they were impatient. Investors bought the stock because they realized everyone hates waiting.   Those who saw the future in that speedy little yellow button? They could’ve caught another 10,000%+ move.   Finally…   Back in 2011, Bitcoin was trading under $10.   It wasn’t regulated—but it worked.   No bank. No middleman. Just wallet to wallet.   People used it to send money. Investors bought it because they saw the potential.   Those who saw something glimmering in that strange orange coin? They could’ve caught a 100,000%+ move.   The people who made those calls weren’t fortune tellers. They just noticed something simple before others did.   A better way. A quiet shift. A small edge. An asymmetric bet.   The red envelope fixed late fees. The yellow button fixed waiting. The orange coin gave billions a choice.   Of course, these types of gains are rare. And they happen only once in a blue moon. That’s exactly why it’s important to notice when the conditions start to look familiar.   Not after the move. Not once it's on CNBC. But in the quiet build-up— before the surface breaks.   Enter the Blue Button Please read more here: https://altucherconfidential.com/posts/netflix-amazon-bitcoin-blue  Profits from free accurate cryptos signals: https://www.predictmag.com/ 
    • What These Attacks Look Like There are several ways you could get hacked. And the threats compound by the day.   Here’s a quick rundown:   Phishing: Fake emails from your “bank.” Click the link, give your password—game over.   Ransomware: Malware that locks your files and demands crypto. Pay up, or it’s gone.   DDoS: Overwhelm a website with traffic until it crashes. Like 10,000 bots blocking the door. Often used by nations.   Man-in-the-Middle: Hackers intercept your messages on public WiFi and read or change them.   Social Engineering: Hackers pose as IT or drop infected USB drives labeled “Payroll.”   You don’t need to be “important” to be a target.   You just need to be online.   What You Can Do (Without Buying a Bunker) You don’t have to be tech-savvy.   You just need to stop being low-hanging fruit.   Here’s how:   Use a YubiKey (physical passkey device) or Authenticator app – Ditch text message 2FA. SIM swaps are real. Hackers often have people on the inside at telecom companies.   Use a password manager (with Yubikey) – One unique password per account. Stop using your dog’s name.   Update your devices – Those annoying updates patch real security holes. Use them.   Back up your files – If ransomware hits, you don’t want your important documents held hostage.   Avoid public WiFi for sensitive stuff – Or use a VPN.   Think before you click – Emails that feel “urgent” are often fake. Go to the websites manually for confirmation.   Consider Starlink in case the internet goes down – I think it’s time for me to make the leap. Don’t Panic. Prepare. (Then Invest.)   I spent an hour in that basement bar reading about cyberattacks—and watching real-world systems fall apart like dominos.   The internet going down used to be an inconvenience. Now, it’s a warning.   Cyberwar isn’t coming. It’s here.   And the next time your internet goes out, it might not just be your router.   Don’t panic. Prepare.   And maybe keep a backup plan in your back pocket. Like a local basement bar with good bourbon—and working WiFi.   As usual, we’re on the lookout for more opportunities in cybersecurity. Stay tuned.   Author: Chris Campbell (AltucherConfidential) Profits from free accurate cryptos signals: https://www.predictmag.com/   
    • DUMBSHELL:  re the automation of corruption ---  200,000 "Science Papers" in academic journal database PubMed may have been AI-generated with errors, hallucinations and false sourcing 
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