CFD Markets News and Forecasts — 06-05-2020

FXStreet reports that according to analysts at TD Securities, in the S&P 500 chart, 2880 is a notable technical threshold as it coincides with a cluster of pivots.

“Even though the S&P 500 closed in the green, it was below the 2880 level which appears like a notable pivot as it broadly coincides with a multitude of pivots (the Oct 3, 2019 low, Aug 2019 congestion zone, Feb 28, 2020 low, April 17, 2020, high).” 

“The S&P 500 overall remains below its 200-dma which sit just a hair above 3k.” 

“If the pivots are to be respected, the S&P 500 might be in the process of a head and shoulders formation as well. If validated, support levels we have our eye on are 2773 and 2650 (which could be neckline support).”

The U.S. Energy Information Administration (EIA) revealed on Wednesday that crude inventories rose by 4.590 million barrels in the week ended May 1. Economists had forecast a surge of 8.125 million barrels.
At the same time, gasoline stocks fell by 3.158 million barrels, while analysts had expected a gain of 0.043 million barrels. Distillate stocks climbed by 9.518 million barrels, while analysts had forecast an increase of 2.900 million barrels.
Meanwhile, oil production in the U.S. decreased by 200,000 barrels a day to 11.900 million barrels a day.
U.S. crude oil imports averaged 5.7 million barrels per day last week, up by 410,000 barrels per day from the previous week.

• China could have prevented the deaths of hundreds of thousands of people around the world from the coronavirus
• Countries are starting to understand the risks of doing business with the Chinese Communist Party
• There is no true win-win with the communist regime
• U.S. happy to provide technical assistance to China on coronavirus
• WHO still needs to demand investigation into China's handling of coronavirus

• Likely significant oversupply in retail real estate will take wild for that to come back
• Demand for commercial real estate in recovery could hinge on permanent changes in social distance a, office organization protocols
• Fed trying to tailor main Street loans to encourage use will adjust as demand is assessed once program is open
• Recovery will be slow, lawmakers will need to contemplate what more support will be needed
• U.S. will have unemployed longer than thought
• U.S. will have to confront what further help is needed for small businesses, hotels, other stricken sectors during recovery
• On the other side of the pandemic, will need real conversations about public debt

• We have first phase of coronavirus pandemic behind us, but still at start
• Current situation means it was possible to decide on more steps to ease lockdown
• We want to avoid infections quickly spreading again, and social distance a
• Guidelines on keeping distance of 1.5 metres, covering mouth and nose remain
• Until June 5, contact with others will remain limited
• People from two households can now meet up
• We have agreed if we have regional differences lower infection numbers need mechanism to take measures in certain places
• Elderly people should be able to have one person who can visit them
• Shops can reopen with hygiene measures
• Bundesliga can be played from second half of May

FXStreet reports that in the opinion of economists at Rabobank, some currencies will fare better than other vs. the USD. This is likely to be the traditional safe-haven currency, the Japanese yen.  

“Fundamental factors will start to re-assert themselves on currency movements and the USD is unlikely to be totally immune to a horrific round of domestic economic data.” 

“On the back of the worsening in relations between the US and China and fears about the spread of the pandemic within the USD, we have lowered our 3 month USD/JPY forecast to 1.05 from 1.08.”

FXStreet reports that analysts at Credit Suisse apprise that pressure is mounting again in EUR/CHF as the pair approaches the psychological 1.0500.

“EUR/CHF is back under pressure after the latest rebound higher was capped by its 55-day average, currently at 1.0579.” 

“The market has not yet managed to break below the psychological barrier of 1.0500. A sustained break below here on a closing basis stays needed to see an acceleration of the downtrend with support then seen next at the 1.0315 July 2015 low.”

“A close above 1.0579 would suggest a more significant correction to the upside, but still within the context of a medium-term downtrend, with resistance at 1.0638/54 then ideally capping.”

U.S. stock-index futures rose moderately on Wednesday, paring earlier gains after ADP's private-sector employment report showed a devastating situation in the U.S. jobs market. Investors also assessed the consequences of the economy reopening and Q1 earnings reports.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

According to the release of the U.S. Department of the Treasury, it is offering $96 billion of Treasury securities to refund approximately $57 billion of privately-held Treasury notes and bonds maturing on May 15, 2020. This issuance will raise new cash of approximately $39 billion. The securities are:

• A 3-year note in the amount of $42 billion, maturing May 15, 2023;
• A 10-year note in the amount of $32 billion, maturing May 15, 2030; and
• A 30-year bond in the amount of $22 billion, maturing May 15, 2050.

FXStreet reports that economist Lee Sue Ann at UOB Group reviewed the decision by the RBA to leave rates unchanged.

“Even though the decision was widely expected and a non-event, the accompanying statement was a slightly longer-than-usual one, with RBA Governor Phillip Lowe noting that bond purchases by the central bank had so far totalled around $50 billion, and whilst this had been scaled back for now, the RBA is “prepared to scale-up these purchases again and will do whatever is necessary to ensure bond markets remain functional and to achieve the yield target for 3-year AGS”. The RBA also decided to broaden the range of eligible collateral for these operations to include Australian dollar securities issued by non-bank corporations with an investment-grade credit rating.”

“The RBA said that it will keep the cash rate at 0.25% “until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2–3 per cent target band”. As for three-year yields, the target will be kept “until progress is being made towards the goals for full employment and inflation”.

“So far, the Australian government and the RBA have responded with a fiscal-monetary injection worth around 16.4% of GDP.”

“Meanwhile, authorities are moving to relax some restrictions as infection rates in Australia slow. The national cabinet is meeting this week, with an announcement on a new baseline for restrictions due on Friday.”

“Nonetheless, the RBA had considered a range of scenarios, with economic output falling by around 10% over the first half of 2020 and by around 6% over the year as a whole, in the most likely scenario. Under this scenario, the RBA also expects the unemployment rate to peak around 10% in the coming months and stay above 7.0% at the end of next year. These scenarios will be discussed in the Statement on Monetary Policy (SOMP), to be released later this week on Friday (8 May).”

Downgrades before the market open

American Intl (AIG) downgraded to Mkt Perform from Outperform at William Blair

Dow (DOW) downgraded to Neutral from Buy at UBS; target lowered to $32

Snap (SNAP) downgraded to Sell from Neutral at Citigroup; target raised to $14

• Says many people in his district are more concerned about their economic situation
• Economy needs to reopen in healthy way
• Shutdown can not go on forever
• If the shutdown lasts through H2, there could be a financial crisis
• Shutdown that is too long could lead to a depression and additional poor health outcomes for other reasons
• Q3 will be transition quarter
• Unemployment rate could be above 20%

U.S. private employers cut 20,236,000 jobs in April - ADP

The employment report prepared by Automatic Data Processing Inc. (ADP) and Moody's Analytics showed on Wednesday the U.S. private employers cut 20,236,000 jobs in April. This was the biggest decline ever in employment.

Economists had expected a drop of 13,050,000.

The increase for March was revised down to -149,000 from the originally reported -27,000.

"Job losses of this scale are unprecedented. The total number of job losses for the month of April alone was more than double the total jobs lost during the Great Recession," noted Ahu Yildirmaz, co-head of the ADP Research Institute. "Additionally, it is important to note that the report is based on the total number of payroll records for employees who were active on a company's payroll through the 12th of the month. This is the same time period the Bureau of Labor and Statistics uses for their survey.

GBP fell against its major rivals in the European session on Wednesday after the report by IHS Markit showed that IHS Markit/CIPS UK Construction PMI plunged from 39.3 in March to 8.2 in April. The latest reading pointed to the steepest pace of contraction in the sector since data were first collected in April 1997. Economists had forecast the indicator to fall only to 22.2. According to the report, all three main categories of construction work experienced a survey-record decline during April due to stoppages of activity on site amid coronavirus pandemic, with decreases in house building and commercial activity exceeding that for civil engineering. The April survey also highlighted a severe impact on construction supply chains, with closures at builders merchants and stoppages of manufacturing production leading to widespread supply shortages.

Meanwhile, British Prime Minister Boris Johnson said he will present the details of a reopening plan for the UK on Sunday. He also added that they want to get going with some of the lockdown easing measures on Monday.

Market participants are also awaiting the outcomes of the Bank of England's (BoE) meeting on Thursday, which could provide more catalysts for movement in GBP.

The ongoing Brexit negotiations with the European Union (EU) also remained in investors' focus. The UK insists it won't request an extension to EU-UK trade talks, due to end in December 2020, creating downside risk for GBP.

General Motors (GM) reported Q1 FY 2020 earnings of $0.62 per share (versus $1.41 per share in Q1 FY 2019), beating analysts' consensus estimate of $0.34 per share.

The company's quarterly revenues amounted to $32.709 bln (-6.2% y/y), beating analysts' consensus estimate of $31.367 bln.

GM rose to $22.25 (+4.66%) in pre-market trading.

GBP/USD: Core trend to turn lower again – Credit Suisse

FXStreet notes that GBP/USD is expected to stay capped at key resistance and analysts at Credit Suisse look for the core trend to turn lower again

“GBP/USD remains capped at its April high and 200-day average at 1.2643/57 and we continue to look for a top to form. Below 1.2248 is now needed to confirm a top with support then seen next at 1.2176/66, below which should see a move back to 1.1934/1.1884.” 

“A close above 1.2657 would see the trend turn higher again, with resistance then seen initially at 1.2726.”

“Below 1.1884 would a clear break of the long-term uptrend from 1985 for a fresh look at the 1.1412 low from March.”

• We want to get going with some of lockdown easing measures on Monday
• I don't think we can make international comparison on death tolls
• There has been a palpable improvement in the situation in care homes
• Ambition clearly is to get up to 200,000 tests a day by end of this month

Barrick (GOLD) reported Q1 FY 2020 earnings of $0.16 per share (versus $0.11 per share in Q1 FY 2019), in line with analysts' consensus estimate of $0.16 per share.

The company's quarterly revenues amounted to $2.721 bln (+30.0% y/y), missing analysts' consensus estimate of $2.790 bln.

GOLD fell to $28.02 (-0.60%) in pre-market trading.

The Mortgage Bankers Association (MBA) reported on Wednesday the mortgage application volume in the U.S. edged up 0.1 percent in the week ended May 1, following a 3.3 percent drop in the previous week.

According to the report, refinance applications decreased 1.7 percent, while applications to purchase a home surged 5.8 percent.

Meanwhile, the average fixed 30-year mortgage rate fell to 3.40 percent from 3.43 percent. That was the lowest level in the MBA's survey, which began in 1990.

"Despite lower rates, refinance applications dropped, as many lenders are offering higher rates for refinances than for purchase loans, and others are suspending the availability of cash-out refinance loans because of their inability to sell them to Fannie Mae and Freddie Mac," noted Mike Fratantoni, MBA's senior vice president and chief economist.

S&P 500: Resistance at 2934/3004 to cap and eventually form a top – Credit Suisse

FXStreet reports that analysts at Credit Suisse note that the S&P 500 has been capped as expected at the upper end of the flagged resistance/recovery objective at 2883/2934 - the price gap from early March, 61.8% retracement of the Q1 collapse and falling 63-day average.

“With a bearish average ‘death cross’ in place, we maintain our base case scenario strength has been corrective only and we continue to look for a top here for an eventual resumption of the Q1 decline.” 

“Below 2727 is now needed to mark a near-term top to add weight to our view, with critical then 200-week average at 2664.”

“A close above 2934 would suggest the recovery can extend yet further to the 200-day average and gap resistance at 2986/3004. We would look for a fresh attempt to set a top here.”

FXStreet reports that FX Strategists at UOB Group noted the outlook on USD/CNH remains positive while above the 7.0850 level.

24-hour view: ‘USD traded between 7.1110 and 7.1318 before ending the day at 7.1210. The sudden lurch lower upon opening this morning has resulted in a pick-up in downward momentum. That said, any weakness is likely limited to a probe 7.0930. On the upside, only a move above 7.1300 (minor resistance at 7.1220) would indicate that the current downward pressure has eased.”

Next 1-3 weeks: “We highlighted last Monday (27 Apr, spot at 7.0850) that ‘downside risk in USD is beginning to increase’ and added, ‘only a break of 7.0650 would improve the prospect of USD moving towards 7.0370’. USD dropped to 7.0535 on Thursday (30 Apr) before surging suddenly to a high of 7.1405 on Friday. The strong rebound appears to have room to test the March’s peak near 7.1650. At this stage, the odds for USD to move above this level in a sustained manner are not high. All in, the outlook is for USD is deemed as positive as long as it holds above 7.0850.”

• No reasons for oil to fall to or below zero now
• We can see first signs of recovery in the oil market
• Nobody is interested in breaking OPEC+ deal now
• Full compliance may be difficult for some countries
• Violation of OPEC+ deal would bring new collapse in oil
• Global oil demand fall eased to 21.5-27 mln bpd now from decline of 30 mln bpd
  
• Second wave of economic slowdown is not ruled out, including U.S. trade war with China

• Says he is confident EU leaders will approve this proposal
• Commission will present eligibility criteria for ESM credit line to EU ministers this week; all countries will be eligible

Walt Disney (DIS) reported Q2 FY 2020 earnings of $0.60 per share (versus $1.61 per share in Q2 FY 2019), missing analysts' consensus estimate of $0.90 per share.

The company's quarterly revenues amounted to $18.009 bln (+20.7% y/y), beating analysts' consensus estimate of $17.493 bln.

DIS fell to $99.33 (-1.71%) in pre-market trading.

FXStreet reports that near-term, strategists at Credit Suisse see signs the trend is tiring to warn of a potential consolidation phase.

"Gold continues to struggle to hold its move above its 'measured base objective' at $1700/05 and upside momentum is waning near-term and the threat of a consolidation phase is growing. Support at $1660 needs to hold to see this averted and to keep the immediate risk higher still, with resistance at $1796/1803 next."

"Below $1660 would signal a more protracted consolidation phase, with support seen initially at $1638, then what we expect to be better supported at $1569/65."

FXStreet reports that strategists at Natixis maintain the hypothesis of an oil price of around 25 dollars per barrel in the medium-term, in the absence of a persistent and coordinated reduction in oil production.

"We believe that the fall in the level of GDP in 2020 (6%) will be permanent. [...] We then estimate the elasticity of global oil demand to global GDP: it is 0.66."

"We have to estimate the price elasticity of global oil demand which is commonly estimated to be 0.07."

"The crisis will permanently reduce global oil demand by 4%. This will reduce the equilibrium oil price in the medium term by 56% leading to a medium-term Brent price of around 24-26 dollars per barrel."

"If oil prices return to only 25 dollars per barrel after the crisis, the main consequence will be a very sharp fall in production of expensive oil: Canada, US shale oil, very deep offshore. This would lead to a trend towards lower-production-cost oil, which would make economic sense."

According to the report from Eurostat, in March 2020, the COVID-19 containment measures widely introduced by Member States had a significant impact on retail trade, as the seasonally adjusted volume of retail trade decreased by 11.2% in the euro area and by 10.4% in the EU, compared with February 2020. Economists had expected a 10.5% decrease in the euro area. In February 2020, the retail trade volume increased by 0.6% in the euro area and by 0.5% in the EU.

In March 2020 compared with March 2019, the calendar adjusted retail sales index decreased by 9.2% in the euro area and by 8.2% in the EU. Economists had expected a 8.0% decrease in the euro area.

In the euro area in March 2020, compared with February 2020, the volume of retail trade decreased by 23.1% for non-food products and by 20.8% for automotive fuels, while food, drinks and tobacco increased by 5.0%. In the EU, the volume of retail trade decreased by 21.3% for non-food products and by 19.3% for automotive fuels, while food, drinks and tobacco increased by 4.7%.

In the euro area in March 2020, compared with March 2019, the volume of retail trade decreased by 21.7% for non-food products and by 21.3% for automotive fuels, while food, drinks and tobacco increased by 8.3%. In the EU, the volume of retail trade decreased by 20.1% for automotive fuels and by 19.5% for non-food products, while food, drinks and tobacco increased by 8.1%.

• 2021 euro area GDP seen at +6.3%

• 2020 Germany GDP seen at -6.5%

• 2021 Germany GDP seen at +5.9%

• 2020 France GDP seen at -8.2%

• 2021 France GDP seen at +7.4%

• 2020 Italy GDP seen at -9.5%

• 2021 Italy GDP seen at +6.5%

• 2020 Spain GDP seen at -9.4%

• 2021 Spain GDP seen at +7.0%

According to the report from IHS Markit/CIPS, April data indicated by far the fastest decline in UK construction output since the survey began 23 years ago. The vast majority of survey respondents (86%) reported a reduction in business activity since March, reflecting widespread site closures and shutdowns across the supply chain in response to the public health emergency.

The headline seasonally adjusted UK Construction Total Activity Index fell from 39.3 in March to 8.2 in April, to signal a rapid downturn in overall construction output. Moreover, the latest reading was the lowest since data were first collected in April 1997. The previous record low was 27.8 in February 2009.

All three main categories of construction work experienced a survey record fall during April, with declines in house building (7.3) and commercial activity (7.7) exceeding that for civil engineering (14.6).

Lower volumes of construction output were almost exclusively attributed to business closures in April, with survey respondents often commenting on complete stoppages of activity on site due to the coronavirus disease 2019 (COVID-19) pandemic.

April data also highlighted a severe impact on construction supply chains, with closures at builders merchants and stoppages of manufacturing production leading to widespread supply shortages.

Business expectations for the year ahead dropped slightly since March and equalled the survey-record low seen in October 2008. Construction firms widely noted concerns beyond simply reopening sites, including cash flow difficulties across the supply chain, rising costs and severely reduced productivity

• ECB needs to discuss how to offer certainty to the court

• ECB hasn't yet discussed whether to buy junk bonds

According to the report from IHS Markit, the coronavirus disease 2019 (COVID-19) pandemic continued to have a severe impact on the eurozone private sector economy during April. This was highlighted by the Eurozone PMI Composite Output Index which fell to a new series low in April of 13.6, down from March's previous record of 29.7.

Reflective of the ongoing restrictions to non essential economic activities in place across the region, the severe and unprecedented contraction in activity was replicated at the sector level. Both the manufacturing and services economies recorded record falls in output during April, with service providers again registering the sharper contraction.

With levels of incoming new business down so sharply, companies reported a steep and accelerated fall in backlogs of work in April. Levels of work outstanding have now declined for 14 successive months, with the latest contraction comfortably the greatest in the series history. Job losses mounted during April, with overall employment down for a second successive month.

April's survey showed that business expectations about the year ahead were little-changed on March's survey record low. Many companies signalled ongoing worries over the longer-term impact of the COVID-19 outbreak on demand and activity.

Finally, prices data showed marked reductions in company operating costs and charges. Lower prices for goods and services linked to oil, alongside reduced employment costs, pushed operating expenses down at the fastest rate since July 2009. Average output charges were cut at the sharpest pace in nearly 11 years.

Reuters reports that Italy's Prime Minister Giuseppe Conte said the independence of the European Central Bank is key to the foundations of the European Union and no constitutional court should decide what it can do.

He spoke after Germany's highest court gave the European Central Bank three months to justify bond purchases under its flagship stimulus Public Sector Purchase Programme (PSPP) or lose the Bundesbank as a participant.

"It is not up to any constitutional court to decide what the ECB can or cannot do. Its independence is the fulcrum of the European treaties, which are recognised by Germany too," Conte told newspaper Il Fatto Quotidiano in an interview.

"I find it out of place for a national court, although a constitutional one, to ask the ECB to justify its purchases. It cannot interfere in these initiatives," he added.

The ECB's separate 750 billion euro ($813.70 billion) scheme, approved last month to prop up the coronavirus-stricken euro area economy, remained unaffected, as the Constitutional Court said its decision did not apply to that.

Conte said Italy did not need the European Stability Mechanism (ESM) but it would be hard for the new European Recovery Fund, built to help countries recover from the coronavirus pandemic, to take off before the summer.

CNBC reports that the coronavirus pandemic might have peaked, but the political fallout from it is just picking up pace and investors are getting very worried, said an economist.

"The virus situation (has) already peaked," according to Zhiwei Zhang, president and chief economist of Pinpoint Asset Management. "On the margin, it's gradually improving. There are always concerns about a second wave (but) as long as the general public as well as the governments are aware of that risk, the risk is contained to some extent," he told CNBC.

However, political risks and U.S.-China trade tensions "look like something that will pick up," Zhang said. "That's probably the number one concern in the market when we talk to investors and sell-side analysts."

Zhang pointed out that these tensions are likely only in their early stages.

It comes just six months before the U.S. presidential election, and amid signs that U.S. officials may be ratcheting up pressure on Beijing, he said. "We already started to see some signs of escalation over the last few days (with) the U.S. side pointing fingers to China," Zhang added.

These tensions will hit the currency market and the Chinese yuan could weaken in volatile trade, he said.

Zhang said the market is very concerned about the current U.S.-China dispute over the origins of the virus, which was first reported from the Chinese city of Wuhan.

FXStreet reports that EUR/USD is expected to see an eventual move to new lows for the year below 1.0635 to test the 2017 low at 1.0341, according to analysts at Credit Suisse.

"EUR/USD remains choppy near-term but we continue to look for an eventual clear break of the 1.0727 recent low with support then seen next at 1.0635, before the 2017 low at 1.0341."

"Our bias is for a break in due course, with support next at .9900/9897 - the 78.6% retracement of the entire 2000/2008 bull trend."

"Resistance from the 200-day average at 1.1032 ideally caps."

The US dollar continued to rise against the euro. On Tuesday, the euro lost about 0.6% against the dollar after an unexpected decision of the Federal constitutional court of Germany, which put at risk the European Central Bank's (ECB) asset purchase program. The German court found that the ECB exceeded its authority by launching the program in 2015, and ordered the German government to "take active steps" to counter its implementation in its current form.

The ICE Dollar index, which shows the value of the us dollar against six major world currencies, rose 0.15% compared to the previous day.

The Australian dollar rose 0.20% against the dollar. Retail sales in Australia in March soared by 8.5% compared to the previous month, according to the final data of the state administration of the country. This is a record increase in the indicator, which was caused by panic buying of food (+24%) and other essential goods against the background of the introduction of quarantine measures in the country.

eFXdata reports that Bank of America Global Research discusses its expectations for this week's BoE policy meeting on Thursday.

"The BoE does not have to announce policy changes at Thursday's policy meeting as £200bn QE package will not exhaust until July...But with likely downbeat forecasts, we expect cut to QE purchase pace and total purchases to be made 'open ended'," BofA notes.

"We expect this week's meeting to be largely a non-event, though a rearranged time for the meeting (7am London time) has raised some expectation for further measures. As detailed above, the BoE will need to address the roadmap for future asset purchases. What is not in doubt, however, is that any announcement from the BoE will be one of liquidity enhancement, which, in our view, will likely keep the pressure on GBP during a month where seasonal factors (poor US macro data weighing on global risk) will pressure GBP lower. We continue to think that GBP/USD is biased towards the lower end of the recent 1.26/1.22 trading range," BofA adds.

US should lift all sanctions on Tehran if it wants to return to nuclear deal

According to provisional results of the Federal Statistical Office (Destatis), the number of new orders in manufacturing in Germany decreased significantly in March 2020 because of the coronavirus pandemic. Real (price adjusted) new orders decreased by a seasonally and calendar adjusted 15.6% in March 2020 compared with February 2020. This is the largest decline since the beginning of the time series in January 1991. Economists had expected a 10% decrease.

Compared with March 2019, the decrease in calendar adjusted new orders amounted to 16.0%. Excluding major orders, real new orders in manufacturing (seasonally and calendar adjusted) were 15.5% lower than in the previous month.

Domestic orders decreased by 14.8% and foreign orders fell by 16.1% in March 2020 on the previous month. New orders from the euro area went down 17.9%, and new orders from other countries decreased by 15.0% compared with February 2020.

In March 2020 the manufacturers of intermediate goods saw new orders decrease by 7.5% compared with February 2020. The manufacturers of capital goods saw a decrease of 22.6% on the previous month. Regarding consumer goods, new orders fell 1.3%.

For February 2020, revision of the preliminary outcome resulted in a decrease of 1.2% compared with January 2020 (provisional: -1.4%).

• CNBC reports that Johns Hopkins University data showed over 3.65 million people have now been infected with the coronavirus and more than 256,800 have died.

• President Donald Trump has said that reopening parts of the U.S. would inevitably cost some people their lives.

• The Development Bank of Latin America will lend $4 billion to Argentina as it tackles the economic fallout from the disease outbreak.

• Most cases reported: United States (over 1.2 million), Spain (over 219,300), Italy (over 213,000), United Kingdom (over 196,200), France (over 170,600)

EUR/USD

Resistance levels (open interest**, contracts)

$1.0917 (1366)

$1.0889 (629)

$1.0873 (673)

Price at time of writing this review: $1.0833

Support levels (open interest**, contracts):

$1.0787 (2061)

$1.0744 (1573)

$1.0697 (2078)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date May, 8 is 73405 contracts (according to data from May, 5) with the maximum number of contracts with strike price $1,060 (2953);

GBP/USD

Resistance levels (open interest**, contracts)

$1.2701 (1388)

$1.2606 (1007)

$1.2528 (1084)

Price at time of writing this review: $1.2433

Support levels (open interest**, contracts):

$1.2371 (715)

$1.2331 (627)

$1.2288 (610)

Comments:

- Overall open interest on the CALL options with the expiration date May, 8 is 17205 contracts, with the maximum number of contracts with strike price $1,3000 (1441);

- Overall open interest on the PUT options with the expiration date May, 8 is 18025 contracts, with the maximum number of contracts with strike price $1,2850 (1070);

- The ratio of PUT/CALL was 1.05 versus 1.05 from the previous trading day according to data from May, 5

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.