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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Spanish yields close the danger 7 level with today s highlight the ADP

Article By: ,  Financial Analyst
May 31, 2012 9:00 AM

EUR/USD
Range: 1.2358-1.2398
Support: 1.2320
Resistance: 1.2550

Another eventful day for the single currency.
- ECB President Draghi releases his annual report of the European Systematic Risk Board, which is part of the EFSF and responsible for the macro-prudential oversight of the EU’s financial system.
- EU holds its annual Economic Forum.
- Ireland holding referendum on fiscal pact.
Technically the Euro RSI’s point to a very oversold market but with Spanish yields approaching the danger 7% bailout level you can’t argue the with the fundamentals.

GBP/USD
Range: 1.5463 – 1.5486
Support: 1.5400
Resistance: 1.5560

Sterling broke supports yesterday as the risk trade continues to trade under pressure with the main beneficiary in the last 24 hours being the JPY as investors unwind high yielding carry trades. Overnight the UK GFK consumer confidence number for May came in at -29, slightly better than the forecast of -32. No UK data today so expect GBP fortunes to be dominated by risk.
USD/JPY
Range: 78.71-79.13
Support: 78.30
Resistance: 79.30

The JPY strengthened across the board with month end rebalancing in USD/JPY , AUD/JPY, EUR/JPY , GBP/JPY all adding to a bid JPY with market speculation that exporters could come to the market as they have missed the opportunity to sell above 80.00. This afternoon the ADP report will be released with the market looking for an early gauge of tomorrows all important US jobs report where at the moment consensus is for a rise in NFP’s to 150k. The Chicago PMI is also released today with the index consensus being for a rise to 57.3.

 

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