CFD Markets News and Forecasts — 14-04-2020

NFXStreet reports that strategists at TD Securities note that OPEC+ along with Non-OPEC+ members came to a historic agreement over the weekend to attempt to save off further collapse in the energy market.

“OPEC+ agreed to cut some 9.7m bpd through May-June, 8m bpd from July-Dec, and 6m bpd from Jan 2021-April 2022, and the cuts could well be bigger than the headline numbers as some nations' production numbers currently stand above benchmarked levels.” 

“NonOPEC+ nations will participate mainly symbolically, via market-driven cuts which could very well grow to nearly 4m bpd from countries such as the US, Canada, Brazil and Norway, and with reserve purchases via the US and also the IEA.” 

“We expect a long road to recovery, as the large Q2 surplus will translate to a large inventory overhang which will take time to work through.”

FXStreet notes that with the equity market having hit its last new high on February 19th of this year, the depth and speed of the market drop have been ferocious. Investors are getting increasingly used to market volatility reflecting the massive amount of uncertainty in light of COVID-19, per JP Morgan Asset Management.

"On average, the stock market bottoms around 1.5 months before the peak in jobless claims and 4.5 months before the end of the recession."

"Market timing is always excruciatingly difficult, and trying to gauge when markets will bottom in this environment is no exception. Given this, even if it takes 5 years to recover to the market peak, the average annual return over that period would be 7%. If the market recovers faster, say in 3 years, that implies a 10% average annual return."

"We are in unprecedented times and with volatility expected to be elevated over the short-term, investors should be positioned with a high-quality bias throughout portfolios. Looking ahead, regardless of how long it takes, returns during the rebound are likely to be strong."

FXStreet reports that analysts at TD Securities anticipate further downgrades to global growth, which should cap the EUR rally and anchor the broad USD in the near-term.

“We believe that the next move is lower back to 1.05 this quarter, but at the same time, that's likely to mark another bottom for the single currency moving forward.” 

“The rub for the EUR right now is that the forthcoming data could show a more protracted shock to the EZ economy. That's relative to the US, and others, while the current response has also been much slower in the EZ.”

“The fragmentation across the member states is critical, highlighting their inability to deliver a unified fiscal response to the crisis. If the crisis eases fast, that could work in their favor, as employment levels will remain stable.”

• Says IMF's view global economy to recover in latter half of this year is worth taking into account
  
  

FXStreet notes that the Bank of Canada (BoC) will announce its Interest Rate Decision on Wednesday, 15 April at 14:00 GMT. Economists at TD Securities analyze four scenarios and their implications for the USD/CAD pair.

“Hawkish (10%): Optimism reigns supreme. Overnight rate and LSAP program unchanged. 2020 GDP contracts <3% before rebound. Poloz cites increased uncertainty (risk of dovish unwind). USD/CAD -0.75%.”

“Neutral (55%): Staying the course. Overnight rate and LSAP program unchanged. 2020 GDP contracts 3-5% before rebound. Notes increased uncertainty, repeats that negative rates ‘are not sensible’. USD/CAD +0.20%.”

“Dovish (25%): Overnight rate unchanged, but some combination of larger purchases of GoCs ($10bn/wk) and CMBs ($1bn/wk). LSAP remains open-ended, but combined with forward guidance. GDP expected to contract by 4-6% in 2020. Bank will continue to look for additional ways to support the market. USD/CAD +0.50%.” 

“Even More Dovish (10%): Whatever it takes. 25 bps is ceiling for CORRA. LSAP increased and expands into CMBs and Provies. 2020 GDP contracts by >5%. LSAP to continue for one year. Bank open to buying credit. USD/CAD +1.00%”

On Monday, 4,342 new cases were reported.

There were also 778 new coronavirus-related hospital deaths reported versus 717 on Monday.

• We should use all ESM instruments but also think about further steps if needed and by that I mean first of all coronabonds
• There's enough to buy but I'm always a fan of taking a broader perspective, especially in the area of corporates

U.S. stock-index futures rose on Tuesday as investors grew more optimistic about the coronavirus outlook amid signs that some countries were preparing to ease coronavirus restrictions, even as the first batch of Q1 earnings reports underlined the negative impact of the virus outbreak on the companies' results/guidance.

Global Stocks:

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

• In January, it projected 3.3% growth this year
• 2021 growth is forecast at 5.8% vs. 3.4% seen in January
• Warns that forecasts have "extreme uncertainty"
• Says a longer outbreak lasting through Q3 could cut another 3 pp of GDP
• Estimates that second outbreak in 2021 could cut 5% from GDP

Tesla (TSLA) upgraded to Neutral from Underperform at Credit Suisse; target raised to $580

The Labor Department reported on Tuesday the import-price index, measuring the cost of goods ranging from Canadian oil to Chinese electronics, was fell 2.3 percent m-o-m in March, following a revised 0.7 percent m-o-m decrease in February (originally a 0.5 percent m-o-m drop). That was the largest monthly drop since January 2015. Economists had expected prices to decline 3.2 percent m-o-m last month.

According to the report, the March drop was driven by lower fuel prices (-26.8 percent m-o-m), while prices of nonfuel imports remained unchanged m-o-m.

Over the 12-month period ended in March, import prices tumbled 4.1 percent, driven by declines in both fuel (-36.2 percent) and nonfuel (-0.5 percent) prices. The decrease was the largest over-the-year drop since the 12 months ended June 2016.

Meanwhile, the price index for U.S. exports plunged 1.6 percent m-o-m in March, following an unrevised 1.1 percent m-o-m fall in the previous month. That was the largest monthly drop in export prices since the January 2015.

Falling prices for both agricultural (-1.4 percent m-o-m) and nonagricultural (-1.5 percent m-o-m) exports contributed to the March plunge.

Over the past 12 months, the price index for exports declined 3.6 percent, reflecting drops in prices of both nonagricultural (-3.7percent) and agricultural (-2.2 percent) exports. That was the largest 12-month decline since the 12 months ended May 2016.

NFXStreet reports that analysts at Nordea note that despite the announced EUR 500bn package, the Eurogroup still looks divided on how, or even if, to implement a more permanent common burden-sharing mechanism.

“Euro politicians will probably continue to prefer to just glue the ship together whenever there is a major leak as it is more politically palatable, so it looks unfeasible that permanent Eurobonds will be launched, a temporary extraordinary measure is more likely.”

“Should we get a more formal move towards Coronabonds or even Eurobonds, we are tempted to buy EUR/USD (all-in) on such an announcement.”

Wells Fargo (WFC) reported Q1 FY 2020 earnings of $0.01 per share (versus $1.20 per share in Q1 FY 2019), missing analysts' consensus estimate of $0.62 per share.

The company's quarterly revenues amounted to $17.717 bln (-18.0% y/y), missing analysts' consensus estimate of $19.398 bln.

The company noted it included the impact of a reserve build of $3.1 bln, or -$0.56 per share, and an impairment of securities of $950 mln, or -$0.17 per share, driven by economic and market conditions. EPS was also reduced by $0.06 due to the redemption of Series K preferred stock. Without these items, EPS would have been $0.80.

WFC rose to $32.16 (+2.32%) in pre-market trading.

FXStreet reports that Senior Economist at UOB Group Alvin Liew assessed the recent publication of the FOMC minutes.

“The latest federal open market committee (FOMC) minutes revealed that the Fed pursued a ‘a forceful monetary policy response’ to the coronavirus disease (COVID-19) pandemic by lowering the fed funds target rate (FFTR) by an unprecedented 100bps to 0.0-0.25% (global financial crisis (GFC) low), restarting quantitative easing (QE) and introducing various measures to ‘support the credit needs of households and businesses’.”

“As for policy guidance, the Fed pledged to maintain rates at the low rate until the economy has weathered the recent events (COVID-19) and return on track to achieve the FOMC’s dual mandates of maximum employment and price stability. There was no discussion on the prospect of negative rates.”

“The Fed has demonstrated it will do whatever it takes, beyond interest rate cuts and asset buying, to restore financial market stability, smooth out US dollar funding conditions and safe-guard the economy. That said, the Fed will do whatever it takes, except negative rates.”

• Says that testing is key
• "We are not there yet" on testing
• If reopening is not done gradually, may have to start all over

FXStreet reports that analysts at Commerzbank suspect that NZD/USD is performing a return to point of break out and look for the rally to fail ahead of the 0.6266 previous 19-year uptrend.

“Short-term resistance converges to 0.6185/0.6264 (55-day ma, October 2019 low and the 61.8% retracement). A slide back below 0.60 is needed to confirm for attention to revert to the 0.5843 current April low and beyond.”

“Previous uptrend should now act as resistance at 0.6266.”

JPMorgan Chase (JPM) reported Q1 FY 2020 earnings of $0.78 per share (versus $2.65 per share in Q1 FY 2019), missing analysts' consensus estimate of $2.20 per share.

The company's quarterly revenues amounted to $28.251 bln (-3.0% y/y), missing analysts' consensus estimate of $29.453 bln.

The company noted the provision for credit losses was $8.3 bln, up $6.8 bln from the prior year, driven by reserve builds which reflect deterioration in the macro-economic environment as a result of the impact of COVID-19 and continued pressure on oil prices.

JPM rose to $98.70 (+0.52%) in pre-market trading.

FXStreet notes that Australia is set to release inflation data on Wednesday, April 29 at 01:00 GMT. Economists at ANZ Bank forecast the figures.

"Our forecast is for headline inflation to be 0.1% q/q in Q1, with the annual rate lifting a touch to 1.9%."

"Trimmed mean inflation, the underlying measure the RBA focuses on, is expected to come in at 0.4% q/q again this quarter. This would see the annual rate at 1.6%. We see the risks slightly tilted to the downside."

"Given the current environment, a relatively surprisingly weak inflation forecast is unlikely to spur the RBA into any additional policy action, given that unconventional monetary policy that has already been implemented."

Johnson & Johnson (JNJ) reported Q1 FY 2020 earnings of $2.30 per share (versus $2.10 per share in Q1 FY 2019), beating analysts' consensus estimate of $2.00 per share.

The company's quarterly revenues amounted to $20.691 bln (+3.3% y/y), beating analysts' consensus estimate of $19.476 bln.

The company also issued lowered guidance for FY 2020, projecting EPS of $7.50-7.90 (down from $8.95-9.15 previously) versus analysts' consensus estimate of $8.08 and revenues of $79.2-82.2 bln (down from $85.8-86.6 bln previously) versus analysts' consensus estimate of $79.54 bln.

JNJ rose to $144.00 (+3.03 %) in pre-market trading.

GBP strengthened against most major counterparts in the European session on Tuesday as investor risk sentiment improved, supporting riskier currencies. The pound rose against USD, AUD, NZD and CAD, and traded little changed against EUR, JPY and CHF.

Slowing rates of new coronavirus cases in Europe raised hopes that the lockdowns helped slow down the spread of COVID-19 and many countries started considering easing of coronavirus restriction.

The better-than-forecast macroeconomic data from China also underpinned sentiment. The General Administration of Customs (GAC) reported that China's imports fell 0.9 percent y/y in March, compared with economists' expectations of a 9.5 percent y/y decline after a 4.0 percent y/y drop in January-February combined. Meanwhile, the country's exports fell 6.6 percent y/y, compared with economists' forecast of a 14.0 percent y/y fall, and after a 17.2 percent y/y tumble in January-February combined.

NFXStreet reports that analysts at Charles Schwab note that the most widely used measure of economic activity, gross domestic product (GDP), will soon be released for the first quarter by different countries.

"First quarter GDP in most major countries may decline about 6%, due to business closures for about 15% of the quarter, assuming GDP fell 40% during the shutdown."

"Second quarter GDP reports may benefit from any return of economic activity as well as monetary and fiscal stimulus."

"Because the economic freefall resulting from the shutdowns to contain the spread of COVID-19 straddled the first and second quarters, its possible neither first nor second quarter GDP reports will fully capture the sudden shock to the economy that the markets reacted to in February and March."

FXStreet reports that in the opinion of strategists at ANZ Bank, oil markets are expected to remain volatile as the market contemplates the new production cut agreement.

"The final 9.7mb/d cut in output is still the biggest coordinated supply agreement the market has ever seen. G20 producers also agreed to reduce output; however, they failed to set any individual targets."

"An end to the price war and this resultant supply agreement should support prices in the short-term."

"However, it fails to completely fill the hole left by the hit in demand from COVID-19. This should see prices remain depressed as inventories continue to rise in coming months."

FXStreet reports that analysts at Westpac Institutional Bank underscore the large disconnect between the U.S. GDP growth expectations and US equities.

“The latest consensus median estimate for Q2 GDP (sourced from Bloomberg) is for a 25% qoq annualised decline, though the tail includes a handful of forecasters expecting an epic 40% to 60% qoq annualised contraction. Consensus expects a ‘muted’ 7.2% increase in Q3 GDP and 5.7% in Q4.”

“With GDP expected to decline at least as much as 2008/09 S&P500 earnings per share could understandably be down anywhere from 40% to 60% on levels a year ago.” 

“On the S&P 500 forward PE ratio vs GDP growth metric, the one-year ahead expected PE (currently 14.4) can be expected to be down 4-6 points vs year ago levels. At a minimum, these metrics should cap upside potential for US stocks.”

“It would not be unprecedented going forward if stocks decoupled from less disrupted funding and credit markets. While funding and credit markets were anything but ‘normal’ in early 2009 spreads nevertheless had returned to pre-crisis levels then, thanks to central bank intervention. Yet equities continued to fall.”

FXStreet reports that gold prices rose above $1,700/oz to their highest level since 2012 as investors seek safe haven amid the global pandemic, per ANZ Bank.

"Concerns about economic growth and high levels of debt continue to support gold."

"The latest wave of buying was sparked by the announcement last week that the Fed will invest up to $2.3trn in loans to aid small and medium sized business, as well as local governments. This is on top of the massive stimulus that they had already announced."

"Investors are also getting increasingly concerned about the impact of COVID-19 on emerging markets."

CNBC reports that China said Tuesday it bought twice as many U.S. farm products in the first quarter than a year ago, in a sign the countries are following through with part of the phase one trade agreement despite the coronavirus pandemic.

The Asian giant imported 35.56 billion yuan ($5.08 billion) worth of U.S. agricultural products in the first quarter, according to its customs agency. The volume of soybeans imported also doubled and that of pork increased more than six times, the agency said, while Chinese imports of cotton rose 43.5%.

From a price perspective, China imported 21.88 billion yuan worth of soybeans, twice that of a year ago. Imports of pork were worth 3.04 billion yuan, an increase of 16 times. That of cotton was 1.59 billion yuan, a 17% increase.

The China-U.S. phase one trade agreement is gradually being implemented, China Customs spokesperson Li Kuiwen said Tuesday at a press conference.

FXStreet reports that analysts at TD Securities expect the USD/CNY pair to favour the weak side of the trading range of recent years.

"We expect further monetary support via cuts of up to 20bps in the 1yr MLF and LPR rates this month, matching the February cut in the PBoC's 7-day reverse repo rate."

"We forecast USD/CNY to favour the weaker side of the trading range seen in recent years."

"We forecast 7.10 end of year (with risk to the upside), before appreciating on a stabilizing global economy and weaker USD against EM."

CNBC reports that markets probably have not hit the "absolute bottom" yet, said veteran emerging markets investor Mark Mobius, who urged investors to keep cash on hand for buying opportunities.

"I don't think we're at the absolute bottom yet because the implications of this shutdown are incredible," Mobius, the founding partner of Mobius Capital Partners, said. He added that "things are pretty bad" from the perspective of corporate earnings.

Earnings season is set to kick off Tuesday with JPMorgan Chase, Wells Fargo and Johnson & Johnson reporting numbers. The first batch of results will give investors a sense of how devastating the hit to corporations could be from the pandemic.

Analysts expect S&P 500 earnings growth to decline 10.2% in the first quarter year-over-year, according to Refinitiv.

Markets have, meanwhile, been volatile in the past month as the number of coronavirus cases and fatalities in the U.S. spiked sharply. Since the S&P 500′s all-time high on February 19, it's down almost 19%.

The question on investors' minds have been whether markets have reached a bottom. But Mobius urged people to keep more cash on hand in case another bottom occurs.

"Although there are some opportunities to buy, I would say it's probably a good idea to keep some powder dry for another downturn. We might see a double bottom," he said.

Mobius also suggested that the damage from a protracted shutdown would be "incredible," and called for the economy to open up again "in some way."

FXStreet reports that the market events in March made it very clear to the many doubters that the USD is the safe haven of choice for many investors, Jane Foley, a Senior FX Strategist at Rabobank, reports.

"We expect to see further bouts of USD strength over the coming quarter."

"In our view, it may not be until there are signs of solid recovery in emerging markets that investors start to consistently and significantly reduce USD positions."

"On a 3-month view, we see risk that the USD can dip to EUR/USD 1.05, GBP/USD 1.19 and AUD/USD 0.55 as the extent of the economy unfolds."

Reuters reports that the French economy is expected to contract 8% this year, the finance minister said on Monday, revising the governments outlook for the second time in a week.

"We will have a growth forecast of -8 in the updated budget law," Bruno Le Maire told BFM TV, revising the estimate down from -6% flagged on Thursday.

Meanwhile, budget minister said that the French government's budget deficit is set to hit a post-war record of 9% of economic output this year.

Budget minister Gerald Darmanin said that financial shortfall would top the 7.6% flagged only last week after President Emmanuel Macron extended a nationwide lockdown until May 11.

"We are going from a deficit -7.6% (of GDP) to a deficit of -9%. Our country has never seen such a deficit since World War Two," Darmanin told France Info.

FXStreet reports that an agreement was finally struck on Sunday afternoon to address the collapse of oil demand due to the pandemic, strategists at TD Securities report.

"OPEC+ has committed to cut 9.7 million b/d between May and June; 8 million between July and December; 6 million from January 2021 to April 2022."

"We project demand to decline by roughly 6.5 million b/d in 2020. Given that most of the shock will occur in Q2, our model predicts a surplus of some 9.7 million b/d despite the aggressive historic supply cut agreement."

"We are still comfortable with our estimate that WTI is unlikely to trade north of $30/bbl and $39/bbl for Brent. In fact, we are projecting a mid-$20s price for WTI (near $30 for Brent) during Q2."

FXStreet reports that in opinion of FX Strategists at UOB Group, the bias in USD/JPY remains tilted to the downside, albeit as part of the broad 107.00/109.00 trading range.

24-hour view: "Our view for USD yesterday that it 'could dip towards 107.70; next support at 107.40 is unlikely to come into the picture'. Our view was not wrong as USD subsequently dropped to a low of 107.49. Downward momentum has improved further and the risk for today is still on the downside. From here, barring a move back above 108.05 (minor resistance is at 107.85), USD is expected to weaken further towards 107.25. The strong support at 107.00 is likely out of reach for now."

Next 1-3 weeks: "After rising quickly to a high of 109.37 last Monday (06 Apr), USD has not been able to make any headway on the upside as it subsequently traded sideways to lower for the rest of the week. The price action has resulted in a rapid loss in momentum and has put paid to our view for USD to test 110.40. From here, the bias is tilted to the downside but at this stage, any weakness is viewed as part of a 107.00/109.00 range."

During today's Asian trading, the US dollar fell against the euro and yen, and the chinese yuan strengthened against the US currency after the publication of stronger-than-expected data on China's foreign trade for March.

The ICE index, which tracks the dollar's performance against six currencies (the euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), fell 0.09% in trading.

The focus of traders ' attention remains the COVID-19 coronavirus pandemic and the measures taken by authorities around the world to limit its spread, as well as to support the economy.

Investors fear that the return of the global economy to growth after the lifting of restrictions will be long and painful.

While in Europe, the growth of the disease is beginning to slow down, in the United States, the peak of the epidemic has not yet been reached.

March data from the General customs administration indicated a less significant than expected reduction in both exports and imports. This suggests that the fall in China's GDP in the first quarter will be less significant than expected.

Thus, exports in dollar terms decreased by 6.6% compared to the same month of the previous year, imports - by 0.9%. In January-February, the volume of Chinese exports fell by 17.2%, and imports-by 4%. Experts on average predicted a 14% drop in exports in March and a 9.5% drop in imports.

CNBC reports that according to an epidemiologist at the University of Hong Kong, countries run the risk of unleashing a second wave of infections of the coronavirus by lifting current restrictions on social distancing too early.

As more countries see a spike in imported Covid-19 disease cases, fears of a second wave of infection have kept various authorities on their toes while they try to determine when to ease current restrictions that have dealt a blow to all but the most essential economic activities.

″... I think having timelines is going to be very challenging. No country is going to want to open up too early, and then be the first major country to have a big second wave," Ben Cowling, a professor at the School of Public Health at the University of Hong Kong, told CNBC.

"I think it's going to be very difficult because we know that even countries that overcome their first wave, they're going to have challenges from other countries who are still experiencing their first wave or even experiencing a second wave, which could be starting now in China," Cowling added.

While the number of coronavirus cases appeared to have tapered off for countries such as China and Singapore, both have reported more cases being imported from overseas in recent days.

"It's really going to be very difficult, I think testing is critical, but (there's) still (a) need (for) some social distancing in place. So it may not be a full opening up, even in June or July," Cowling said.

FXStreet reports that FX Strategists at UOB Group suggested NZD/USD could now by headed towards the 0.6150 region in the next weeks.

24-hour view: "Our expectation for NZD to "drift lower towards the bottom of the expected 0.6025/0.6100 range first" did not materialize as it traded between 0.6060 and 0.6112. The underlying tone has firmed somewhat and this could lead to NZD edging higher towards 0.6125. For today, the next resistance at 0.6150 is unlikely to come into the picture. Support is at 0.6070 but the stronger level is at 0.6035."

Next 1-3 weeks: "The sudden surge in NZD late last week came as a surprise as it blew past the top of our expected 0.5820/0.6020 range and hit a high of 0.6103 last Friday. While overbought short-term conditions could lead to a couple of days of consolidation first, NZD could continue to advance later on towards 0.6150. Only a break of 0.5975 would indicate that the current upward pressure has eased."

FXStreet reports that cable's upside remains well and sound so far, although a solid move beyond the 1.2600 mark appears unlikely for the time being, suggested FX Strategists at UOB Group.

24-hour view: "Instead of 'trading sideways between 1.2425 and 1.2490', GBP edged higher to 1.2536 before ending the day on a firm note at 1.2504 (+0.28%). Despite the patchy momentum, GBP could advance above the strong resistance at 1.2550. For today, a move beyond the next resistance at 1.2600 would come as a surprise. Support is at 1.2475 followed by 1.2430."

Next 1-3 weeks: "There is not much to add to the update from yesterday (13 Apr, spot at 1.2460). As highlighted, the bias is for further GBP strength towards 1.2550. While GBP subsequently rose to 1.2536 and closed on a firm note at 1.2504 (+0.28%), upward momentum still appears to be lackluster. That said, after yesterday's price action, a move above 1.2550 would not be surprising but from here, the prospect for a sustained rise above 1.2600 is not high. Meanwhile, the 'strong support' level has moved higher to 1.2390 from 1.2350. Only a breach of 1.2390 would indicate the current mild upward pressure has eased."

CNBC said that China reported that its dollar-denominated exports and imports both fell from a year ago in March, but they were better than what economists had expected.

China's exports fell 6.6% in March from a year ago, while imports slipped 0.9% in the same month, data from the General Administration of Customs showed on Tuesday.

Economists had expected exports from China to fall 14% in March from a year ago, while imports were projected to fall 9.5% over the same period.

The country's March trade surplus was $19.9 billion, as compared with the $18.55 billion that economists had expected.

Earlier this year, China reported combined trade data for the months of January and February.

Over the two months, exports fell 17.2% from a year ago while imports fell 4% as the coronavirus outbreak put the brakes on the world's second largest economy.

• CNBC said that Singapore reported 386 new cases of Covid-19, the disease caused by the coronavirus, as of noon local time on April 13, bringing the total number of cases closer to 3,000.

• China's National Health Commission said on April 13 there were 89 new cases of coronavirus infection, mostly travelers from overseas.

• India's coronavirus lockdown has been extended until May 3, Prime Minister Narendra Modi said in an address to the nation. The initial 21-day lockdown was due to end on Tuesday.

• Global cases: More than 1.9 million

• Global deaths: At least 119,588

• Most cases reported: United States (581,679), Spain (170,099), Italy (159,516), France (137,877), Germany (130,072)

EUR/USD

Resistance levels (open interest**, contracts)

$1.1065 (1448)

$1.1037 (821)

$1.1014 (686)

Price at time of writing this review: $1.0943

Support levels (open interest**, contracts):

$1.0877 (1315)

$1.0855 (1149)

$1.0828 (1728)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date May, 8 is 65322 contracts (according to data from April, 13) with the maximum number of contracts with strike price $1,1200 (3296);

GBP/USD

Resistance levels (open interest**, contracts)

$1.2758 (784)

$1.2697 (948)

$1.2651 (633)

Price at time of writing this review: $1.2567

Support levels (open interest**, contracts):

$1.2479 (676)

$1.2386 (300)

$1.2319 (572)

Comments:

- Overall open interest on the CALL options with the expiration date May, 8 is 13665 contracts, with the maximum number of contracts with strike price $1,2600 (948);

- Overall open interest on the PUT options with the expiration date May, 8 is 15536 contracts, with the maximum number of contracts with strike price $1,2850 (1073);

- The ratio of PUT/CALL was 1.14 versus 1.14 from the previous trading day according to data from April, 13

* - 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.