U.S. Dollar. Our bias NEUTRAL, on the sidelines till a clearer picture develops.
• The U.S. Dollar Index closed out the week at 74.98 following volatile global equity markets
• Greek debt concerns & risk sentiment key to Dollar price action in the coming week
• FOMC policy meeting & press conference due Wednesday
• Support at 73.50, resistance 76.00
• We maintain a neutral outlook for the Dollar in the week ahead
Euro. Our bias BEARISH, we’ll be looking to sell on rallies
• Euro closed the week down 0.36% against the U.S. Dollar at the 1.4300 handle after news that policy officials had devised an aid package for debt stricken Greece
• Greece debt concerns continues to weigh on market sentiment
• Euro’s rally on Friday reigned in by reports that Moody’s was placing Italy’s aA2 rating on review for a possible downgrade
• German producer price index, ZEW economic survey, preliminary PMI reports and German Ifo Business reading due this week.
• Support at 1.4150, resistance 1.4500
• We remain bearish Euro in the week ahead
Japanese Yen. Our bias NEUTRAL, on the sidelines till a clearer picture develops.
• Japanese Yen finished last week virtually unchanged against the U.S. Dollar
• Risk sentiment in the week ahead may cause volatile Yen price action
• Support at 79.55, resistance 81.00
• We maintain a neutral outlook for the Dollar in the week ahead
British Pound. Our bias BEARISH, we’ll be looking to sell on rallies
• Sterling declined 0.20% against the U.S. Dollar last week after bleak U.K. data
• MPC Minutes due this week with markets eyeing the report following the departure of Andrew Sentence
• Support at 1.6110, resistance 1.6275
• We remain bearish Sterling in the week ahead
Canadian Dollar. Our bias BEARISH, we’ll be looking to sell on rallies
• Canadian Dollar closed virtually unchanged against the U.S. Dollar last week
• Loonie expected to decline as concerns over growth in the U.S. and sovereign debt fears in Europe weigh on risk appetite
• Expectations for BoC rate hikes have been pared considerably from May peak of 95 basis points
• Retail sales report due Tuesday
• Support at 0.9670, resistance 0.9900
• We remain bearish Loonie in the week ahead
Australian Dollar. Our bias NEUTRAL, on the sidelines till a clearer picture develops.
• Australian Dollar was similar to its fellow commodity currency the Loonie, closing virtually unchanged against the U.S Dollar last week
• RBA minutes due Tuesday
• Credit Suisse Overnight Index Swaps see the RBA holding the cash rate steady over the next 12 months.
• Support at 1.0500, resistance 1.0715
• We maintain a neutral outlook for the Aussie in the week ahead
New Zealand Dollar. Our bias BEARISH, we’ll be looking to sell on rallies
• New Zealand Dollar closed the week at 0.8124 against the U.S. Dollar after being buffeted by the recent risk on/risk off market indecision
• Manufacturing report due Monday, credit card spending report on Wednesday
• Risk sentiment likely to determine Kiwi price action this week
• Support at 0.8000, resistance 0.8175
• We remain bearish Kiwi in the week ahead