Summary
Toward the end of the US trading session, equities took a turn for the worse, moving down sharply well into negative territory. The second quarter was a bad month for equities globally, and the S&P 500 index finished the last day of the quarter down 10 points to 1030. The S&P 500 has pushed to new 6 month lows and broke through technical support at 1040.
Tomorrow's Events
AUD
1:30
Australia Building Permits
May
32.5%
21.3%
EMU
8:00
EMU PMI
June
55.6
GBP
8:30
UK PMI
57.5
58
USD
12:30
US Jobless Claims
460K
457K
US Construction Spending
-.6%
2.7%
14:00
US ISM Manufacturing
59
59.7
US Pending Home Sales
-15.2%
6%
Trading Opportunities
USD/JPY
Weekly support of the USD/JPY is very strong close to the 88 level. Fear in the financial markets has pushed USD/JPY down to support levels despite the weak retail sales and employment figures that have been released earlier in the week. A strong Taken Survey could change the mood of the market and push the USD/JPY higher
GBP/USD
The sterling has been one of the best performers over the past week, and many investors have found it ironic that sterling appears to be moving move in sync with the safe haven Swiss franc and Japanese yen than the euro. In fact, sterling is the second best performing G10 currency this month, rising 4% against the dollar. The Swiss franc takes top billing with a 7.3% rise. Sterling’s gains have been fueled by several factors, including the fiscal austerity that strengthened ideas that the UK’s AAA rating is safe, M&A flows, talk of foreign interest in the UK property market, and some suggestion that sterling’s role as a reserve currency may be enhanced at the expense of the euro. The GBP/USD 20-day moving average is poised to cross above the 50-day moving average, just as GBP/USD retraces toward the break out of the medium term trend line. GBP/USD is poised to climb higher, after some consolidation.