Euro trades lower in thin holiday trade as market awaits US Treasury debt auctions

[RTFX-Trading]

Euro trades lower in thin holiday trade as market awaits US Treasury debt auctions

What’s new?
Germany: IFO Business Climate index May 84.2, exp 85.0, previous 83.7
United States: Traders awaiting US Treasury auctions.
United States: Fed’s Fisher says no signs of a problem with inflation at the moment.
United States: GM bankruptcy decision near.
Asia: North Korea ready to fire more missiles.

Today:
10h00 Euro zone: Current Account Mar, previous €-2.3B
11h00 Euro zone: Industrial new orders M/M Mar, exp -0.80%, previous -0.60%
15h00 United States: C/Shiller Home price index M/M Mar, exp -2.00%, previous -2.20%
16h00 United States: Richmond Fed Mfg index May, exp -7.0, previous -9.0
16h00 United States: Consumer confidence May, exp 42.6, previous 39.2
16h30 United States: Dallas Fed Mfg activity, exp -24.0, previous -31.60


Overnight Rates & Indices:
EURUSD: 1.4023 – 1.3944.
USDCHF: 1.0879 – 1.0825.
GBPUSD: 1.5933 – 1.5861.
EURJPY: 133.29 – 132.04.
USDJPY: 95.08 – 94.61.
DowJones: 8’277 -0.18%.
NASDAQ: 1’692 -0.19%.
S&P 500: 887 -0.15%.
Nikkei: 9’208 -0.71%.
Gold: $953
Oil: $61

Comments:

The US dollar recovered yesterday as reports of North Korean nuclear tests and slower than expected German IFO numbers led to risk aversion by investors. However, it is too early to determine whether the rally in the single currency is over just yet, as trading was slow yesterday due to the market holidays in the US and UK.

The euro fell to $1.3986 against the dollar down from $1.4023 early on Tuesday after reaching a high of $1.4051 on Friday, the highest since early January. The Euro also fell against the Yen to 132.04 more than 1 Yen from the previous day. The dollar yesterday, increased 0.3% to 95.10 against the yen, trading near the day's high around 95.20 yen hit earlier in the day following the North Korea news. The Pound closed at 1.5910, just below the 6 ½ month high reached on Friday at 1.5944.

RTFX Trend is still showing dollar bearish, however we saw a harami yesterday on EURUSD daily graph. I expect EURUSD to trade lower today, however I still see a bullish market and dips in the market are buying opportunities, preferably in 1.3925 – 1.3900 region.

Good Day
Emman Xuereb
RTFX Ltd
Head Office

Level 2, Suite 2, The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 27 78 01 35
Fax: +356 21 41 24 58
Web: www.rtfx.com

This message and any attachments (the "message") are intended solely for the addressees and are confidential. If you receive this message in error, please delete it and immediately notify the sender. Any use not in accordance with its purpose, any dissemination or disclosure, either whole or partial, is prohibited except with formal approval. The internet cannot guarantee the integrity of this message. RTFX Ltd (and its subsidiaries) shall (will) not therefore be liable for the message if modified. Do not print this message unless it is necessary, consider the environment. RTFX Ltd holds a Category 3 license issued by the Malta Financial Services Authority.