Projections of fx markets Junes 05th to 09th

The rapid decline in energy costs should help to tame inflation in Europe, Bank of Italy governor Ignazio Visco said on Saturday, urging companies not to seek to boost their margins by leaving prices higher for longer.  Visco, a member of the European Central Bank’s governing council, said the key issue was what happened to inflation now that energy prices had retreated from peaks hit after last year’s Russian invasion of Ukraine.  I expect that at this point there will also be a cooling in the increase in core inflation, as we call it, which should reflect this reduction in the cost of energy,” Visco told the International Economy Festival in Turin.

“If this happens, (ECB) monetary policy is certainly the correct one at the moment even if I would perhaps have pressed for a more gradual approach,” he added.  Euro zone inflation eased more than expected in May fuelling a debate about the need for further ECB rate hikes beyond an increase expected later this month.

Projections of fx markets Junes 05th to 09th

EURUSD  closed for sellers at friday´s trading session. Below 1.07 sellers only to TP 1.0683.  Around 1.0670 will have buy strategies but possible only up to 1.0680, it is important to stay alert for possible more sellers down 1.0660 and 1.0650.  It is important don´t to hold on any intraday if market is already below 1.0670.  Any buy or sell showing latency on those levels are very important to expire.  New highs are eventually expected due to stability of US rates.

GBPUSD closed for sellers at friday´s trading session. Below 1.2450 sellers only preferred.  Around 1.2450 we expect more sellers down to 1.2440, 1.2430 and 1,2420. Buyers are interested into buying around all those prices even 1.24. Prices are giving us the possibility to wait on buyers above 1.2450 or even lower around 1.2430. The main projection is for buyers so any sell strategy must be as fast as possible out of trading.

USDCAD closed for sellers but above buy prices. Between 1.3380 and 1.34 market should expect buyers in the area. No sell strategies are considered around this levels. Buyers are pushing to 1.35 and above.