Market Briefing on Wednesday June 15th

On Wednesday EUR/USD traded within a relatively tight range of 1.1190-1.1242, while at the start of the US trading session the major was trading close to the upper boundary of that range. Although the incoming FOMC policy decision may have already been priced in, as some media noted, the press conference following it will be closely monitored for hints on macroeconomic outlook and policy. The 38.2% Fibonacci (1.1191), reflecting the pairs ascent from December 3rd 2015 low to May 3rd high, has acted as a level of support for a second straight trading day on June 15th.

During the early phase of European trade GBP/USD received a boost to an intraday high of 1.4215 on the back of stronger-than-anticipated employment report and earnings growth during the three months to April 2016 compared to the same period a year ago. Average earnings including bonuses rose 2.0% during the period, outpacing the median forecast by analysts, pointing to a 1.7% surge. At the same time, the rate of unemployment in the UK, estimated in accordance with ILO (International Labour Organization), was reported to have dropped to 5.0% during the three months to April compared to the same period a year ago, following six consecutive three-month periods, when the rate stood at 5.1%. However, due to continuing Brexit concerns and positive data on US producer prices and New York manufacturing sector conditions, the pair trimmed gains and fell back below 1.4200. The monthly S2 and the weekly S1 levels could still be in play as support points.

USD/CAD advanced to an intraday high of 1.2920 during early US trade, supported by largely positive US data and a slump in prices of crude oil. The move up may be resisted at the weekly R1 (1.2962) and then – at the high from June 6th (1.2984).

Gold futures for delivery in August remained relatively steady, after distancing from a near-6-week high of $1,290.05.