Global Markets:

  • Asia stock markets: Nikkei is down 0.10 %, Shanghai Composite lost 0.50 %, ASX dropped 0.80 % and Hang Seng is up 0.20 %
  • Commodities: Gold at $1313, Silver at $20.72, Crude Oil at $106.21
  • Bonds: US 10 year yield at 2.615

FX Update:

  • AUD – Strong resistance focus is at 0.9461. While this holds, there’s risk for extension of the range trading that has been in place since April. Support is at 0.9296 ahead of 0.9203.
  • CAD – USD/CAD is getting close to the 1.08 barrier option and a test seems imminent. Much will depend on Canadian CPI data today, which is expected to come in at 0.2 % month-on-month and 2.0 % year-on-year. The pair posted a new low on Thursday extending the bearish price pattern of lower highs/lows and the next main support focus is at 1.0731. Resistance is at 1.0892.
  • EUR – The latest upside moves appears to be just a recovery phase within a downtrend. Resistance should hold at 1.3677. There’s scope for resumption of downside to test support at 1.3477 and then 1.3248.
  • GBP – Further buying has taken the pair above resistance at 1.7043, increasing the potential for more acceleration to significant resistance at 1.7332. Support is at 1.6923.
  • JPY – USD/JPY rallied to 102.00 after solid US econ data, but offers from leveraged names capped the topside. Selling rallies remains the preferred strategy for now; good selling interest at 102.20. The pair has been consolidating under resistance at 103.02. Any further downside should find supports at 101.43 and then 100.76.

Upcoming Events:

  • 08:00 GMT – Euro Zone Current Account (19.0B)
  • 12:30 GMT – Canadian CPI (0.2 % MoM, 2.0 % YoY)
  • 12:30 GMT – Canadian Retail Sales (1.0 % MoM)