Daily economic digest from Forex.ee

Daily economic digest from Forex.ee

30 May 2017, 12:32
EEAnalytics
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Daily economic digest from Forex.ee

Stay informed of the key economic events

Tuesday, May 30th

 

The EUR/USD pair extends its downside trend for the fourth session in a row, having dropped to its 7-day lows on the back of recent news of Greek debt troubles. Earlier, the German newspaper Bild reported on the possible intention of the Greek government not to pay the next payment if creditors do not ease its debt load. Thus, Greece actually put a new ultimatum to the creditors, which shows that if there is no any debt relief, there will be no payment for debt recovery either. Moreover, yesterday the market reacted quite negatively on uneventful ECB president M.Draghi’s speech, in which he once again stressed that Eurozone’s economy shows solid recovery, while inflation remains subdued. However, the pair managed to bounce off its recent lows in early Europe, as risk-off rally remains at its full swing lending some support to the common currency. Today EU calendar will provide the market with secondary data reports only, while the US will release CB Consumer Confidence, so further developments surrounding Greek situation will continue to navigate the pair this Tuesday.

 

The GBP/USD pair continues to stay under negative pressure amid growing tensions surrounding the UK election. Pressure on the GBP began after the release of results of recent opinion polls, which showed that the Labor party continues to reduce the distance with the leader of the election race - May's Conservatives party. According to the latest information, the Conservative Party is leading with the result of 43%, while the Labor Party has already scored 37%. Moreover, broad risk-off sentiments, triggered by latest Greek default news, are also collaborating with pair’s decline this Tuesday. Looking ahead, today UK economic calendar remains data dry, leaving the pair at the mercy of global market’s trend in European hours, while the US will release CB Consumer Confidence and set of secondary reports, which will be able to keep investors busy during NA trading session.

 

The AUD/USD pair keeps its downside trend since last Thursday, having refreshed today its 7-day lows at 0.7416, as numerous factors are weighing the Aussie in the second half of this week. Today huge wave of risk-aversions approached the market on the back of renewed worries around Greece's financial situation, while investors continue to stay cautious ahead of the UK general election. Adding to this, softer tone in commodities, especially in copper, and ongoing bullishness of the greenback are also adding some negative pressure on the pair lately. However, better-than-expected data from Australian labor market, seen this morning, was able to provide some support to the pair, sending it away from its recent lows. Now investors shift their attention on bloc of the US macroeconomic data, featuring CB Consumer Confidence, scheduled on NA session, while broad risk-off trend will continue to navigate the pair during European trading hours.

 

After reaching its historical high at 2736.58 spot, the BTC/USD pair slumped for more than 1000 dollars to the level of 1710.91 in the second half of the last week, as the pair corrected lower after enormous bullish rally lasted for the last couple of weeks. However, the cryptocurrency regained its bullish momentum on Monday, and by the moment of writing was trading around the level of 2250.00. The downside correction of the pair was quite short lived, so most likely, it was just a profit taking actions after huge gains of the bitcoin and now we are awaiting for extension of a bullish trend of the cryptocurrency.  

 

The main events of the day:

CB Consumer Confidence – 17.00 (GMT +3)

 

Support and resistance levels for the major currency pairs:

EURUSD               S. 1.1142 R. 1.1198

USDJPY                 S. 110.94 R. 111.62

GBPUSD               S. 1.2772 R. 1.2882

USDCHF               S. 0.9716 R. 0.9802

AUDUSD              S. 0.7415 R. 0.7461

NZDUSD               S. 0.7008 R. 0.7110

USDCAD               S. 1.3410 R. 1.3488



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