EUR/USD: weak macroeconomic statistics weighs on the euro
The EUR/USD trading pair is demonstrating a controversial sentiment, testing the 1.0690 level. Earlier the pair slightly declined amid publication of a block of macroeconomic data of the Eurozone.
Thus, the German manufacturing orders for April lost 0.4% against the previous -10.9% in March, against the analysts' expectations of the 3.8% increase, while the annual value decreased by 9.9% against the previous correction of -11.2%, while the experts' estimate was -8.4%. Moreover, the total Eurozone retail sales showed a negative trend of -0.4%, the same as last month, when the market expected 0.2%, while the annual figure fell to -2.6% from -3.3%, having beaten the experts' estimate of -3.1%. According to analysts at Eurostat, the region's population decreased consumer demand for food and fuel, but increased purchases for other product groups via e-commerce.
- Resistance levels: 1.0725, 1.0768, 1.0800, 1.0850.
- Support levels: 1.0666, 1.0634, 1.0600, 1.0550.
USD/JPY: Japan's regulator assessed the prospect of lower inflation towards the 2.0% target
The USD/JPY currency instrument reflects a moderate loss of ground at 139.32 as the bears have held a short-term advantage since the beginning of the week of June 5. "The American continues to be under increased pressure since last Friday, June 2, amid the release of May labor market data.
Meanwhile, the chairman of Japan's financial authorities used the opportunity to speak to the Japanese parliament late last week and said there was no clear timetable for the consumer price index to return to the 2.0% target area for reasons that could influence the ongoing monetary policy, suggesting that the officials could achieve their goal in the near future. Kazuo Ueda pointed out that there are still no conditions to discuss details of the end of "dovish" rhetoric in the regulator's policy, including the sale of agency's assets via real estate trust funds is not expected, while the Japanese authorities undertook commitments to bring the economy out of the deflationary zone.
- Resistance levels: 139.67, 140.21, 140.91 and 141.50.
- Support levels: 138.90, 138.00, 137.50, 136.50.
Silver price analysis
The precious metal is testing the 23.55 area in a corrective move amid a strengthening of the U.S. currency and investors transferring capital to a range of risky assets.
Having made a first serious attempt to rise above the 24.00 threshold, the asset retreated, and volumes of transactions declined with the current support of fundamental factors. In the PRC, one of the key centers for silver imports and processing, the level of shipments to foreign markets declined 7.5% in May, while purchases from partners showed a correction of 4.5% against a decrease of 7.9% earlier. Thus, the reflection of the ratio of Chinese goods and services sales abroad to imports purchased abroad slipped from $90.21 billion to $65.81 billion, indicating lower activity in demand for fuel and metals.
- Resistance levels: 23.90, 24.80.
- Support levels: 23.20, 22.10.
Crude Oil market overview
During the APAC trading session the price of WTI oil is holding at 71.47 being under the "bearish" influence since Monday when the price updated the local maximum of May 25.
Market participants expressed concern that business activity in the U.S. is slowing down, which has a negative impact on demand for hydrocarbons. In turn, markets were able to almost win back the loss of positions amid decisions of OPEC+ the day before to extend the agreement to reduce the level of production capacity in 2024. Cartel participants report that their decisions were caused solely by a desire to maintain a stable situation on the market, as well as to keep a stable forecasting background.
Meanwhile, oil was supported by the data published by the American Petroleum Institute on hydrocarbon reserves, according to which the weekly value for June 2 fell by 1.71 million barrels compared to the previous period growth of 5.202 million barrels. Today, June 7, investors await the release of the final statistics from the EIA, which is estimated to show a significant increase of 1.5 million barrels, building on the previous upward trend of 4.488 million barrels.
- Resistance levels: 72.50, 73.52, 74.66, 76.00.
- Support levels: 71.00, 70.00, 69.00, 68.04.