Asian indices finished higher today as traders stop for breath after the recent rally. The Nikkei225 finished 0.13 percent higher to 21,285, the Hang Seng benchmark in Hong Kong finished 0.14 percent higher at 28,513. The Shanghai Composite finished 0.21 percent higher to 3,008, while in Singapore, the FTSE Straits Times index finished 0.38 percent lower to 3,309. Australian equities finished higher, and the ASX200 closed up 14 points or 0.2% to 6,665.
European session started lower today as markets try to digest the recent rally. DAX30 is giving up 0.38 percent to 12,293, CAC40 is 0.09 percent lower at 5,522 while the FTSE MIB in Milan is trading 0.26 percent lower at 21,334. The London Stock Exchange is 0.10 percent higher to 7,414 amid Brexit uncertainty.
In commodities markets, crude oil trades higher at $57.91 amid geopolitical tensions around the globe and low-interest rates environment. Brent oil also trades higher to $65,36 per barrel as major oil producers have yet to agree on adjustments on output. Gold holds above the 1,400 mark after hitting five years high at 1,411 on Friday, a level that we haven’t seen since 2013. The precious metal holds above all the major daily moving averages, and strong resistance will be met at 1,411 recent high.
In cryptocurrencies market, bitcoin (BTCUSD) makes new yearly high at 11,240, the daily low for BTC was at 10,513, and the daily high at 11,240. Immediate support for BTC stands now at $10,500 round figure while the next support stands at 10,000 the previous resistance. On the upside, strong resistance now stands at 11,240, today’s high while I expect extra pressure from sellers at 11,500 and then at 12,000. Ethereum (ETHUSD) trades higher at 305, with capitalization now to 32.0 billion. On the upside, the immediate resistance stands at 317, the daily high, while the support now stands at 287, the previous resistance which now turns into support. Litecoin (LTCUSD) on the other hand trades flat at 136. The crypto market cap now stands above $326.0 billion.
On the Lookout: In Germany, the IFO Business Climate Index came in at 97.4 for June, weaker than last month’s 97.9 and better than analyst’s estimates of 97.3. The Current Economic Assessment also came worst than estimates at 100.8 points as compared to last month’s 100.6.
In macro news from America, we await the Chicago Federal Reserve National Activity and the Dallas Federal Reserve Manufacturing index.
Trading Perspective: In forex markets, USD consolidates at 96.06 after the Fed policy dovish update last Thursday, while the Aussie dollar continues higher for the fifth day at 0.6947, while Kiwi also trades higher at 0.6610.
GBPUSD started the week strong hitting the daily high at 1.2765 but then retreats lower at 1.2720 as traders are still nervous about the Brexit developments. Major support now stands at 1.2710, the 50-hour moving average which if broken might accelerate the slide further towards 1.2646, the 100-hour moving average. On the upside, immediate resistance now stands at 1.260, the daily high while more offers will emerge at 1.2820, the 50-day moving average.
In Sterling futures markets, the open interest increased by 2,200 contracts on Friday while volume shrunk by more than 19,000 contracts.
EURUSD trades 0.17 percent higher at 1.1386 amid broad USD weakness. The pair on Friday broke above the 200-day moving average, and that attracted extra bids that pushed the pair up to 1.1390. Immediate resistance for the pair stands at 1.14 round figure. A convincing close above 1.14 can lead prices to 1.1450. Support now stands at 1.13 round figure, while more bids will emerge at 1.1260, the 100-day moving average.
In euro futures markets, the open interest increased by 9.200 contracts on Friday, while volume added around 11.300 contracts.
USDJPY trades flat at the start the week at 107.38 having hit the daily low at 107.26 and the daily high at 107.47. USDJPY pair will find support around 107.04 the YTD low and then at 106.70. On the upside, immediate resistance for the pair now stands at the 107.50 round figure.
In Yen futures markets, the open interest shrunk by 378 contracts on Friday while volume dropped by 26.900 contracts.
USDCAD consolidates at recent low at 1.3187 as the sharp rebound in crude oil prices, Canada’s main export item seems to have added further strength in the Canadian Dollar (CAD). The pair will find immediate support at 1.3150 while extra support stands at 1.3100 round figure. The pair has reached oversold levels so a rebound can’t be ruled out. On the upside, immediate resistance now stands at the 1.32 zone before an attempt to 1.3450 recent high from 31st May.