Daily Commentary

June 4, 2014 by

GBP/USD- We have seen cable touch the bottom of its newly formed range earlier today and during the Asian session, but rest assured it was only a touch and has bounced off. The pair has surged nearly to the top of the range on the back of positive sterling data being Services PMI coming out at 58.6 against an expected 58.2, this would have helped on the push on the upside. Although with the US releasing their ISM Non-Manufacturing PMI number out at 56.3 against an expected 55.5, the other US data was not looking so good and dollar weakened against the pound.

USD/CAD- Dollar Cad has taken quite a leap on the upside, with the interest rates remaining at 1% as most of us expected. With some of cad data being released, it was not looking to good for CAD, with the trade balance coming out at -0.64B against an expected 0.1B, a poor reading which would have accounted for some of the move. With some congestion previously at 1.09538, we saw it turn around at this point after a decent uptrend being formed on the H1. I expect to see some selling happen due to overbought conditions.

AUD/USD- A fairly quiet day for Aussie, but generally rising on the back on GDP QoQ and YoY coming out at 1.1% and 3.5%, both positive numbers that boosted the pair. A move on the upside was expected due to the huge plunge we saw in may, the sellers and taking their profits and some buying on oversold conditions have begun.

EUR/USD- We have seen a drop in euro dollar today, although it wasn’t exactly significant as it seems to be stuck in between a range and isn’t breaking out of it easily. Although tomorrow we have the ECB press conference which has been anticipated to be a big market mover. Depending  on what is to be said, we may see a move on the upside or a further fall, either way some sort of movement is to be expected.

S&P 500- S&P still moving up even after the breather it took earlier in the week. With people sucking their money out of gold due to the Ukraine worries subsiding, they seem to be pumping it into equities. It has made an impressive move on the upside although in recent hours we have seen it slow with some H1 dojis being formed, could this be the start of a further fall? After all this buying I wouldn’t be surprised to see a pullback.