CFD Markets News and Forecasts — 11-06-2020

FXStreet reports that strategists at TD Securities hear the bulls roaring and expect a stampede making its way following the FOMC meeting where the central bank committed to provide further support to the economy. 

“The FOMC meeting provided little discernable new information, apart from a statement suggesting the tapering of Treasury buying had run its course, opening the door for increases in the scale of QE. However, Fed Chair Powell confirmed our expectations — the Fed will maintain its uber-easy policy for the foreseeable future, and may even utilize more tools (such as Yield Curve Control) to support yields amid massive Treasury issuances.” 

“With gold on the cusp of a breakout, the 'second wave' narrative is interfering with the yellow metal's rally this morning. After all, gold bugs have learned that the yellow metal does not protect against a deflationary shock like a pandemic. We think there is no new information in the contagion data. Hence, we caution against interpreting this narrative as a sustainable driver of prices. In this context, Systematic trend followers are maintaining a long bias in gold, with a rising hurdle rate for liquidations.”

James Knightley, the Chief International Economist at ING, notes that this week’s jobless claims numbers provide a bit of a mixed picture of what is happening in the jobs market. 

"Initial claims fell pretty much as expected to 1.54m the week of June 6 from 1.90m the previous week. However, continuing claims declined more slowly than hoped to 20.9m from 21.3m (consensus was looking for a figure of 20.0m)."

"Continuing claims are falling as consumer-facing businesses call back staff as the re-opening process gains momentum. The slow rate of decline may reflect that the uprating of unemployment benefits with the extra US$600 per week from the government stimulus plan means that to return to work would leave many people financially worse off. Indeed, the University of Chicago estimates that 68% of benefit claimants have higher incomes now than when they were working."

"However, the stresses caused by the Covid-19 crisis continue to spread through the broader economy, such as supply chains and professional services. Companies are finding that revenues and profits are not rebounding as quickly as hoped and are being forced to lay-off staff, meaning initial jobless claims remain elevated. This is likely to keep initial jobless claims running above 1 million for a few weeks longer."

FXStreet reports that UOB Group’s economist Ho Woei Chen, CFA, assessed the latest inflation data in China vs. the probability of extra easing by the PBoC.

“Both China’s Consumer Price Index (CPI) and Producer Price Index (PPI) continued to ease and were below consensus forecasts in May. This provides more room for monetary easing while PPI deflation pointed to the need for the government to continue with its counter-cyclical measures.”

“Year-to-date, China’s CPI averaged 4.1% y/y. Monthly CPI inflation is likely to remain under 3% in the next few months, partly due to a higher base of comparison in late-2019 due to the surge in pork prices. For the full-year, inflation is likely to be close to the target of 3.5% set at the National People's Congress (NPC).”

“We expect China to keep its policy measures to ensure that domestic rates remain low to support the credit channels in the 2H20 economic recovery.”

“Easing inflation will continue to provide some room for further cuts to the LPR though this is likely to remain moderate. We have factored in another 30 bps cut to the 1Y LPR to 3.55% by end-4Q20. We also see room for another one to two rounds of RRR cut in the next 3-6 months to reduce funding costs and increase the capacity for banks to expand credit and absorb the RMB1 trillion of special treasury bonds issuance.”

FXStreet reports that according to economists at Credit Suisse USD/CHF broke below the key support at 0.9503 low and the 61.8% retracement at 0.9457 reinforcing the downswing. Next support awaits at 0.9393/85.

“Although the daily RSI momentum is now approaching oversold territory, we expect the downmove to extend further. Support is seen initially at 0.9393/85, removal of which would see the 78.6% retracement at 0.9346/37 next, where we would expect to see fresh buyers at first for a fresh pause. Beneath here in due course could open the door to a move back to the current lows for the year at 0.9188/83, where we would expect to see a move concerted effort to hold.”

“Resistance moves initially to 0.9460/73, then 0.9503/15, which now ideally holds to keep the immediate downside bias intact. Above here on a closing basis would see a move back to 0.9586, ahead of 0.9650/51, above which complete a small base to reassert the rangebound environment.”

• I think we’ve learned that if you shut down the economy, you’re going to create more damage
• And not just economic damage, but there are other areas
• I think it was very prudent what the president did, but I think we’ve learned a lot

U.S. stock-index futures fell on Thursday, as investors’ sentiment was weighed down by a gloomy Fed statement and worries about the second wave of coronavirus infections. 

Global Stocks:

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

Apple (AAPL) upgraded to Hold from Reduce at HSBC Securities

The Labor Department reported on Thursday the U.S. producer-price index (PPI) rose 0.4 percent m-o-m in May, following an unrevised 1.3 percent m-o-m drop in April.

For the 12 months through May, the PPI decreased 0.8 percent, following a 1.2 percent decline in the previous month.

Economists had forecast the headline PPI would increase 0.1 percent m-o-m but drop 1.2 percent over the past 12 months.

According to the report, the May advance in the final demand index was attributable to a climb in prices for final demand goods (+1.6 percent m-o-m, the largest increase ever), which more than offset a fall in prices for final demand services (-0.2 percent m-o-m).

Excluding volatile prices for food and energy, the PPI edged down 0.1 percent m-o-m but rose 0.3 percent over 12 months. Economists had forecast a decline of 0.1 percent m-o-m and a gain of 0.4 percent y-o-y.

The data from the Labor Department revealed on Thursday the number of applications for unemployment reduced last week to the lowest level since the U.S. economy went into lockdown made to fight the COVID-19 pandemic, but still remained evaluated.

According to the report, the initial claims for unemployment benefits totaled 1,542,000 for the week ended June 6. That brings the number of job losses over the past twelve weeks (since the U.S. went into coronavirus lockdown in mid-March) to more than 44.2 million.

Economists had expected 1,550,000 new claims last week.

Claims for the prior week were revised upwardly to 1,897,000 from the initial estimate of 1,877,000.

Meanwhile, the four-week moving average of claims fell to 2,002,000 from a revised 2,288,250 in the previous week.

Safe-haven currencies JPY and CHF strengthened against other major currencies in the European session on Thursday as the Federal Reserve downplayed hopes for a quick economic recovery from the coronavirus pandemic.

Fed's officials kept interest rates unchanged at their latest meeting and projected they would remain near zero through 2022. The central bankers also said they would maintain the current pace of bond purchases for the coming months. They also expect that coronavirus will continue to "weigh heavily on economic activity, employment, and inflation in the near term". The policymakers see the U.S. economy to shrink by 6.5% this year before expanding by 5% in 2021. 

Rising coronavirus cases in many countries, including the United States, as lockdowns ease also weighed on investors' sentiment. According to the latest figures from Johns Hopkins University, more than 7.4 million cases of the COVID-19 have been confirmed worldwide, including over 2.0 million in the U.S.

FXStreet notes that EUR/USD strength looks to have peaked for now, according to analysts at Credit Suisse. Below 1.1322/16, the pair can see a setback with support next at 1.1241/37. 

“With a daily bearish RSI divergence in place, the best of the strength looks to have been seen for now and we look for a retracement lower and a correction/consolidation phase.” 

“Below 1.1322/16 should see a minor top established to add weight to this view with support then seen next at 1.1261, then 1.1241/37 – the low from earlier this week and 23.6% retracement of the entire Match/June rally – which we look to try and hold. A break would warn of a larger top and a more concerted setback, with support next at 1.1160/54.” 

“Resistance is seen at 1.1363/69 initially, with a break above 1.1395 needed to reassert a bullish tone again with resistance then at 1.1423/28, then the key 1.1495 high for the year.”

FXStreet reports that the Credit Suisse analyst team looks for a retracement to the rally of the past month with support seen at 1.2619 as the GBP/USD pair has been capped at 1.2817. 

“Support is seen at 1.2640 initially – the 23.6% retracement of the May/June rally – then key price support at 1.2619. Beneath this latter level is needed to see a near-term top established to warn of a more concerted retracement lower with support seen next at the 13-day average at 1.2569, then the 38.2% retracement and price support at 1.2535/33., which we look to try and hold.” 

“Resistance is seen at 1.2725/28 initially, with a break above 1.2755 needed to see the risk turn higher again for a retest of 1.2813/17, with the potential downtrend from December last year seen at 1.2850 today.”

Chris Turner, Global Head of Markets at ING, notes that the two key market takeaways from yesterday’s FOMC meeting are (a) that the Fed stands ready to support market functioning by keeping asset purchases at least at the current pace and (b) that it is not envisioning any hike through 2022.

"Putting aside some unmatched expectations on yield curve control, the continued dovishness of the Federal Reserve should bode well for a continuation in the risk rally."

"At the same time, the FOMC added another element to the USD bearish argument. And now, with the yen also jumping after the FOMC announcement, it is starting to look like a cleaner weak-USD story, not only to the benefit of procyclical. The Fed has however been overshadowed in the Asian morning by increasing concerns on second Covid-19 waves, especially in the US, with cases in America that re-opened earlier starting to surge again. This has obliterated the FOMC impact on markets, which started the day on a firmly defensive stance with the dollar, gold and treasuries all turning positive."

"Today, the US jobless claims will be watched, as investors search for some confirmation to their recent optimism on the US jobs market. However, it has been reported that the weekly jobless claims report may overestimate the actual unemployment numbers as a portion of the claimants are allowed benefits but do not count in the unemployment numbers, which may help explain the misalignment with the NFP in May. The market reaction function today may start to tell us whether the release is losing some centrality."

FXStreet notes that the aussie has been unable to take over the 0.7032 December 2019 high and while analysts at Credit Suisse see some near-term consolidation, AUD/USD should break the mentioned peak which would reinforce the trend change to the upside.

“AUD/USD remains in a near-term consolidation phase after reversing back below the December 2019 high at 0.7032 once again, as the market continues to unwind its overbought RSI momentum condition.” 

“We look for price support and 13-day exponential average at 0.6857/56 to ideally floor the market to see a resumption of the upswing.”

“We see resistance at 0.6994, then 0.7032/41, ahead of 0.7063. An eventual break above here in due course would further reinforce the view of a broader change in trend to the upside, with resistance then seen initially at the July 2019 high and 78.6% retracement of the April 2019/March 2020 downfall at 0.7082/92.” 

“A break below 0.6856 would see a minor top established and a move back to the 200-day average at 0.6666, where we expect to see a concerted effort to hold. A break beneath here though would the correction extend further, with support next at 0.6619/12.”

• Pretty happy with recent numbers on inflation expectations
• Negative rates for economy, households would create rather big problem for central bank
• Yield curve control is not something we have discussed very much in Sweden

FXStreet notes that the kiwi is consolidating ahead of the 2014 downtrend at 0.6567, level which analysts at Credit Suisse expect to be tested while key support stays at 0.6448. 

“NZD/USD remains in a short-term consolidation phase just ahead of the pivotal 2014 downtrend, currently at 0.6567, in line with daily RSI momentum remaining in overbought territory.” 

“Although further consolidation should be allowed, we look for March 9 spike high at 0.6448 to ideally hold any additional downside and see a resumption of the upswing from there in due course.” 

“We see resistance initially at the aforementioned 0.6567, removal of which would reinforce the view that we are seeing a broader change in trend to the upside and see resistance next at 0.6580, ahead of 0.6665.” 

“Below 0.6448 on a closing basis would see a move back to the 200-day average and 23.6% retracement of the 2020 surge at 0.6321, which ideally floors the market.”

FXStreet reports that FX Strategists at UOB Group do not discard a probable test of the key support around 7.000 in USD/CNH in the next weeks.

24-hour view: “The sharp but short-lived overnight drop that hit a low of 7.0400 came as a surprise. The decline appears to be running ahead of itself and further weakness is unlikely for today. USD is more likely to consolidate and trade between 7.0400 and 7.0800.”

Next 1-3 weeks: “We have held the same view since Monday (08 Jun, spot at 7.0800) wherein USD ‘could weaken to 7.0400’. USD briefly touched 7.0400 in overnight trading before rebounding quickly. While oversold short-term conditions could lead to a few days of consolidation first, the negative phase in USD is deemed as intact until 7.0950 is breached (‘strong resistance’ level was previously at 7.1210). Looking ahead, the next support below 7.0400 is at 7.0200 followed by 7.0000.”

FXStreet reports that economists at Westpac Institutional Bank expect the AUD/USD pair to trade above the 0.70 next week as the Aussie economy is showing signs of improvement and the RBA is not taking as much action as its counterparts.

“The Australian economic narrative continues to improve steadily, with reopenings earlier than previous guidance and Treasury lowering its peak unemployment forecast. Headline consumer sentiment continued to rebound in June and fears of higher unemployment have eased.”

“Iron ore above $100 reinforces A$’s degree of insulation from swings in the global risk mood, with another C/A surplus likely over Q2.”

“A meltdown in global stocks would of course hit the Aussie, but with G10 central banks overall very much in balance sheet expansion mode while the RBA just holds the line, AUD probably has enough fuel for further trade above 0.70 in the week ahead.”

Reuters reports that the German government's planned 130 billion euro (116.4 billion pounds) stimulus programme could boost economic output in Europe's largest economy by 1.3 percentage points both this year and next, the DIW institute said on Thursday.

DIW forecast the economy would contract by 9.4% this year as the coronavirus pandemic takes its toll before expanding by 3% next year - all under the assumption that the pandemic is sustainably contained.

But it said the government's latest economic stimulus package was noticeably supporting the economy and added that if the programme were implemented as announced, economic output would fall less sharply - by 8.1% this year - and rise by 4.3% next year.

DIW said gross domestic product would fall much further in the second quarter than during the first, when it dropped by 2.2% - the steepest rate since 2009.

But the institute said the economy would pick up again, albeit very slowly, from the third quarter as restrictions to contain the spread of the coronavirus are eased.

FXStreet reports that OPEC+ has decided to extend the current production cuts by a month and strategists at OCBC Bank expect the crude oil market to enter a supply deficit by October 2020 while forecast Brent near $50/bbl by year-end.

“OPEC+ has extended its current supply cuts by a month to July 2020. The current output reduction of 9.7mbpd was expected to expire this month; the months of July to December would only see a production reduction of 7.7mbpd.”

“We now estimate that the crude oil market could return to a supply deficit by October 2020. This is one month earlier than if OPEC+ had stuck with its original schedule.”  

“The crude oil market is expected to experience a sharp supply deficit in late Q4, when demand may reach within 3% of pre-Covid 19 levels but OPEC+ still keeps to its original supply schedule. The stress may prove short-lived when 2mbpd of supply returns from January 2021.”

“We now estimate Brent to finish 2020 close to $50/bbl.”

CNBC reports that the 19 finance ministers of the euro area are looking for a new president, at a time when the region is facing tough negotiations over a 750 billion euro ($851 billion) fiscal plan to help it recover from the coronavirus crisis. 

The Eurogroup, which brings together the finance chiefs of countries that share the euro, will welcome applications from Thursday afternoon in a process that’s due to be concluded by July 9.

It comes after Mario Centeno, the current Eurogroup president, resigned from the Portuguese government, where he had served as a finance minister since October 2015. Being a sitting finance minister is a precondition to serve as Eurogroup chief.

Even before the official process begins, there are three names being mentioned as potential candidates: Spain’s finance minister Nadia Calvino, Luxembourg’s finance chief Pierre Gramegna and, from Ireland, Paschal Donohoe.

Irrespective of who applies for the job, the decision comes at time of division within the region.

Some European countries are pushing for a bold and unprecedented fiscal stimulus, whereas other, more fiscally-conservative countries, are wary of taking on too much risk.

This split is evident in ongoing discussions about a 750 billion euro plan to prop up the wider European Union amid the Covid-19 pandemic.

The European Commission, the executive arm of the EU, proposed last month that the amount should be raised in financial markets and distributed to member states, so they can deal with the economic shock from the crisis. It plans to disburse 500 billion euros as grants and 250 billion euros as loans.

Reuters reports that France should speed up its gradual return to work and business activity, French Finance Minister Bruno Le Maire said on Thursday as new data showed the economy lost half a million jobs in the first quarter alone.

President Emmanuel Macron's government put France under one of Europe's most stringent lockdowns from mid-March, and only began lifting restrictions on May 11. Macron is due to address the nation in a televised speech on June 14.

"I want economic activity to resume more quickly," Le Maire told LCI television, adding he wanted activity to be back to normal by this summer.

The government expects the euro zone's second-biggest economy to contract by 11% in 2020 and Le Maire told lawmakers on Tuesday that 800,000 jobs were at risk.

Already in the first quarter, more than 500,000 jobs were lost, largely because short-term contracts were not renewed as the economy went into lockdown, data from the INSEE official statistics agency showed on Thursday.

"France is going to get there, it's going to recover and return to growth. We can reduce (unemployment), we can rebound from 2021 if we push up our sleeves, get back to work and step up the recovery," Le Maire said.

He added that the car industry, one of the hardest hit, was already returning to normal with strong sales likely in June and July after selling almost no new cars during the lockdown.

FXStreet reports that USD/JPY risks a deeper retracement on a breakdown of the 106.70 level, noted FX Strategists at UOB Group.

24-hour view: “We expected USD to weaken yesterday but held the view that ‘the major support at 107.00 is not expected to come into the picture’. However, USD dipped slightly below 107.00 (low of 106.97) before ending the day on a weak note at 107.09 (-0.58%). Conditions remain severely oversold but the weakness in USD is not showing sign of stabilization just yet. From here, USD could grind lower but a break of the next support at 106.70 would come as a surprise. On the upside, a move above 107.60 would indicate that the weakness in USD has stabilized.”

Next 1-3 weeks: “USD is currently holding just above the bottom of the 107.00/109.00 range that we indicated on Tuesday (09 Jun). The pullback in USD over the past few days has been more ‘aggressive’ than anticipated but we are not convinced that USD is ready to move into a negative phase just yet. Only a daily closing below 106.70 would indicate that USD is ready to move lower in a sustained manner towards the support at 106.00. At this stage, the prospect for a sustained decline in USD is not high but it would continue to increase unless USD can move above 108.00 within these few days. To put it another way, the outlook for USD is deemed as mildly negative for now.”

Reuters reports that the European Union must reach a deal on a proposed 750 billion euro economic recovery plan to cope with the impact of the coronavirus crisis by July, French Junior European Affairs Minister Amelie de Montchalin said on Thursday.

“There is no other solution than having a deal by July. If we do not have a stimulus plan, we will have a problem,” Montchalin told BFM Business radio.

The European Commission’s recovery plan aims to help economically weaker countries hit hardest by the coronavirus.

But fiscally conservative northern countries - the “frugal four” of the Netherlands, Austria, Denmark and Sweden - have resisted some proposals, notably taking on mutual debt.

FXStreet reports that prospects of further strength in NZD/USD appears to be losing some momentum, suggested FX Strategists at UOB Group.

24-hour view: “We expected NZD to ‘consolidate and trade between 0.6450 and 0.6550’ yesterday. However, it rose briefly to an overnight high of 0.6585 before easing off quickly. The underlying tone has weakened somewhat but it is too early to expect a sustained decline. For today, NZD is more likely to trade sideways, likely not moving out of yesterday’s broad range of 0.6497/0.6585.”

Next 1-3 weeks: “Yesterday, we indicated that ‘conditions remain overbought but the resilient rally in NZD appears not ready to call it a day just yet’. We added, ‘any further advance is expected to be at a slower pace’. NZD subsequently edged to a fresh high of 0.6580 before plummeting to a low of 0.6469. The low is not far above our ‘strong support’ level of 0.6450. While only a break of 0.6450 would indicate that the positive phase that started about 3 weeks ago has ended (see annotations in the chart below), the odds for further NZD have diminished. From here, unless NZD can move and stay above 0.6550 within these 1 to 2 days, a break of 0.6450 would not be surprising and would indicate that NZD has moved into a consolidation phase.”

In today's Asian trading, the US dollar rose against most of the world's major currencies on growing fears of a second wave of the coronavirus epidemic in the United States.

The dollar has fallen in recent years due to a general decline in demand for safe haven currencies, following the gradual resumption of economic activity in the US and other countries after the removal of lockdowns imposed to curb the spread of coronavirus.

However, yesterday it became known about the increase in the incidence of COVID-19 in the United States: in Texas, 2 504 new cases of coronavirus were detected in one day, which is the maximum since the beginning of the pandemic.

"Such a rapid increase in the incidence of diseases in Texas after the removal of restrictions makes you think about the correspondence of the dynamics of financial markets to the real situation in the economy," said AxiCorp analyst Stephen Innes.

The total number of detected cases of COVID-19 in the US has reached 2 million, according to data from Johns Hopkins University.

The ICE index, which tracks the dynamics of the US dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), rose by 0.36%.

The dollar index declined before the Federal reserve system and statements of the heads of the Fed Jerome Powell. The Fed warned on Wednesday that the coronavirus pandemic carries huge challenges and extreme uncertainty. Under these conditions, the Fed intends to keep the base interest rate at the current level (0-0.25%) until the end of 2022.

FXStreet reports that in opinion of FX Strategists at UOB Group, Cable needs to close above 1.2800 to allow for extra gains in the near-term.

24-hour view: “Our view for GBP yesterday was that unless it ‘can break 1.2760 and stay above this level, the risk of a deep pullback would increase quickly’. GBP rose briefly to 1.2812 before dropping back down to end the day at 1.2747 (+0.16%). Upward momentum has deteriorated rapidly and for today, GBP is not expected to move above the 1.2812 high (1.2780 is already quite a strong resistance). However, it is too early to expect a sustained decline. From here, GBP is likely to drift lower to 1.2680 (minor support is at 1.2710).”

Next 1-3 weeks: “We highlighted yesterday that ‘unless GBP moves and stays above 1.2760 by end of today, prospect for further strength to 1.2800 would diminish quickly’. While GBP subsequently popped above 1.2800 (overnight high of 1.2812), it retreated quickly to end the day at 1.2747 (+0.16%). Momentum has deteriorated further and the risk for the positive phase that started early last week to come to an end has increased. Unless GBP closes above 1.2800 within these 1 to 2 days, a break of 1.2630 (‘strong support’ previously at 1.2610) would not be surprising and would indicate that positive phase has run its course. Looking ahead, if GBP manages to close above 1.2800, there is another major resistance at 1.2860.”

Reuters reports that China's auto sales in May rose 14.5% from the same month a year earlier, industry data showed on Thursday, the second consecutive month of increase as the world's biggest vehicle market recovers from lows hit during coronavirus lockdowns.

The result followed a 4.4% rise in April and a 43% drop in March, when the pandemic pummelled demand. Before April, sales had suffered an almost two-year slump.

Sales in May rose to 2.19 million vehicles, showed data from the China Association of Automobile Manufacturers (CAAM), the country's largest auto industry association.

eFXdata reports that Danske Research discusses its reaction to June FOMC policy statement.

'The Fed is far away from considering scaling back its support to the economy. The Fed maintained its forward guidance and signalled the target range will remain at 0.00-0.25% through 2022. The Fed said it will continue to buy US Treasury securities and mortgage-backed securities “at least at current pace”, i.e. around USD80bn US Treasury securities and USD45bn mortgage-backed securities per month. The Fed is seriously considering implementing yield curve control, i.e. setting a ceiling for how high medium-term interest rates can go," Danske notes. 

"We see EUR/USD rising to 1.15 near-term. SEK and NOK should also be able to strengthen further in the current environment," Danske adds.

According to the report from INSEE, at the end of the first quarter of 2020, payroll employment dropped by 2.0%, that is 502,400 net job losses in one quarter. Economists had expected a 2.3% decrease. Payroll employment returned to its lowest level since the fourth quarter of 2017. The decline affects almost exclusively the private sector with 497,400 net job losses (that is –2.5%) while the public service loses 4,900 jobs (that is –0,1%). Over a year, payroll employment dropped by 304,700 (–1,2%). It declined by 317,200 in the private sector but increased by 12,400 in the public service.

Temporary employment accounted for the largest share of the fall in the first quarter: –40.4%, that is –318,100 jobs. Excluding temporary work, payroll employment decreased by 0.7% (–184,300 jobs).

In the so-called «non-agricultural market» field (industry, construction and market services), payroll employment has been measured in quarterly time series since the end of 1970. In the first quarter of 2020, it fell by 2.8% (–485,400 jobs): this is the largest drop ever recorded in the series. In particular, the decline was much more pronounced than in the fourth quarter of 2008 (–0.8%) and in the first quarter of 2009 (–0.9%).

EUR/USD

Resistance levels (open interest**, contracts)

$1.1499 (1047)

$1.1477 (1449)

$1.1459 (1154)

Price at time of writing this review: $1.1329

Support levels (open interest**, contracts):

$1.1259 (2098)

$1.1222 (618)

$1.1181 (580)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date July, 2 is 43693 contracts (according to data from June, 10) with the maximum number of contracts with strike price $1,0900 (2092);

GBP/USD

Resistance levels (open interest**, contracts)

$1.2860 (1478)

$1.2809 (460)

$1.2788 (641)

Price at time of writing this review: $1.2667

Support levels (open interest**, contracts):

$1.2582 (946)

$1.2546 (984)

$1.2507 (1490)

Comments:

- Overall open interest on the CALL options with the expiration date July, 2 is 14359 contracts, with the maximum number of contracts with strike price $1,2900 (1604);

- Overall open interest on the PUT options with the expiration date July, 2 is 15841 contracts, with the maximum number of contracts with strike price $1,2550 (1490);

- The ratio of PUT/CALL was 1.10 versus 1.08 from the previous trading day according to data from June, 10

* - 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.