The EUR/USD started the week on a firm note, but it has failed to make new highs and for the time being it’s trapped inside a very narrow range between 1.1285 resistance level and 1.1245 – 1.1233 support zone. On Monday, the Eurzone Markit Services PMI come better than expected at 56.2 but the EUR/USD failed to rally. But the US Markit Services PMI disappointed the market and only posted a subdued figure of 53.6 down from 54.1.On Thursday the ECB interest rate decision is expected to keep monetary policy unchanged but it can signal the start of reducing its QE program in during the coming months which can push EUR/USD well above 1.1300.
GBP/USD Weekly News Events June 5 - 9
The GBP/USD has made some modest gains since the beginning of the week reaching a high of 1.2950. The UK economic calendar brought the Markit Services PMI figures which come lower than market expectation at 53.6. Despite lower manufacturing activity the GBP/USD broke above last week high, but the rally was quickly sold off. The UK general election is the main risk event and has the potential to disturb the market volatility. A break and a close above the big psychological number 1.3000 can stimulate more buying activity, but a break below last week low 1.2767 can push GBP/USD into a bigger correction.
USD/CHF Weekly News Events June 5 - 9
The USD/CHF seems unchanged since the beginning of the week. We made a marginal new low reaching 0.9613 but it has failed to break below the 0.9600 round numbers. There were no major news events to trigger a bigger market reaction. The UK parliamentary election can be the catalyst for a bid in the safe haven currency, which is the reason why USD/CHF keeps pressing to the downside. The next major area of interest remains 0.9500 big psychological numbers.
USD/CAD Weekly News Events June 5 - 9
The USD/CAD continued to slowly drift lower as the smart money continues to build their bearish bets against the US dollar. We’ve touched a low of 1.3425 the current range support level. On Tuesday the Ivey Purchasing Managers Index has severely dropped from 62.0 down to 53.8 but the Canadian dollar continued to gain traction, more due to the dollar weakness rather than Canadian dollar strength. Tuesday the Housing market prices and then later during the last day of the week the Unemployment figures should shape the USD/CAD price action. A break below 1.3422 can signal a resumption of the bearish trend.
Gold Weekly News Events June 5 - 9
The uncertainty over the UK general election has pushed Gold to a 7-week high. The safe haven bids have pushed Gold all the way t0 $1295 but we failed to break above the $1300 big round number. Current move seems overbought but only a daily close below $1258 support zone can signal a reversal until then the line of least resistance remains up. An unfavorable vote during the UK election can send Gold to $1320 daily resistance level.