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14:35 ENERGY: July Crude Falls 60 Cents As DOE Stocks Rise] New York, June 2:
July crude oil was 60 cents lower at $54.00 in the minutes following the release
of DOE petroleum inventory data showing higher stocks in all major categories.
The downdraft sets the overnight high at $54.74 as at least interim
resistance, with the spot high of April 25 at $56.00 as the next obstacle to
uptrend development. A break of hourly support at $53.75 would add to the
impression of downside reversal, threatening to dump prices back to their $52.05
breakout point from Wednesday. --timothy.evans@thomson.com
For more detailed analysis, charts and specific trade recommendations,
contact timothy.evans@thomson.com for a FREE TRIAL SUBSCRIPTION to our IFR
Energy Services newsletter.
14:33 EUR/USD: Schroeder; Chirac to Meet Saturday] Boston, June 2: Fresh of
bruising political defeats French President Chirac and German Chancellor
Schroeder will meet Saturday to discuss the situation within the EU. Elsewhere
on the wires, German Economics minister Clement continues to criticize the ECB
for failing to take into account the state of the German economy in its interest
rate setting policy, Down Jones reports. Expect political pressure on the ECB to
ramped up dramatically in the months ahead, especially as German voters get set
to go to the polls in September. EUR/USD is trading firmer, at 1.2277 after
heavy French buying. --Jamie.Coleman@thomson.com
: Factory Orders Rose by 0.9% in April ] Boston, June 2: Factory
orders rebounded in April after soft readings in the first quarter. Orders
expanded by 0.9% following an upwardly revised 0.7% rise in March (prev +0.1%).
This compared to expectations for a 1.2% m/m rise. Durable goods orders
meanwhile were unrevised as they rose by 1.9%. Nondurable orders fell 0.2%,
counter to expectations for a fair-sized rise. (MORE)
Suggested Trades... Alternate Trades...
Position Entry Profit Stop Position Entry Profit Stop
USD/JPY Long 108.15 108.62 107.87 Short 108.62 108.15 108.80
EUR/USD Short 1.2328 1.2205 1.2397 Long 1.2205 1.2328 1.2152
GBP/USD Short 1.8209 1.8116 1.8263 Long 1.8116 1.8209 1.8076
USD/CHF Long 1.2459 1.2555 1.2403 Short 1.2555 1.2459 1.2597
EUR/CHF Long 1.5352 1.5399 1.5346 Short 1.5399 1.5352 1.5439
AUD/USD Short 0.7563 0.7502 0.7600 Long 0.7502 0.7563 0.7478
USD/CAD Short 1.2555 1.2470 1.2599 Long 1.2470 1.2555 1.2430
NZD/USD Short 0.7054 0.6983 0.7095 Long 0.6983 0.7054 0.6953
EUR/GBP Short 0.6772 0.6737 0.6792 Long 0.6737 0.6772 0.6721
EUR/JPY Short 133.49 132.47 134.03 Long 132.47 133.49 131.97
GBP/JPY Long 196.48 197.23 196.13 Short 197.23 196.48 197.64
GBP/CHF Long 2.2663 2.2760 2.2614 Short 2.2760 2.2663 2.2810
June 2nd: AUD/USD rallied toward 0.7530 today, but Aussie offers between
0.7530/35 capped the rise. Traders note the limited interest in the market from
short-term players to hold positions ahead of tomorrow's jobless claims. Asian
interest is still near 0.7500 to buy, but lethargy could soon dominate trading.
Look ot fade any rally between 0.7530/50 as medium-term models have turned
bearish on Aussie for the first time in a year. The worsening drought is getting
little market focus, but that should change shortly.
PM Howard is on the wires endorsing the "One China" policy. He is meeting today
with Wang Jiarui, a key member of the Communist Central Committee. It's hardly a
surprise with the close trade ties Australia has with China. -- Thomas.Rogers@thomson.com
At A Standstill Ahead Of The 14:00 GMT NY Cut] London, June 2:
Trading in USD/JPY grinds to a halt ahead of the 14:00 GMT NY cut. Large strikes
are noted at 107.25, 108.00 and 109.00. Momentum has waned as the session
progressed after the downside held amid decent size bids at 108.10. Japanese
exporters and real money sellers were noted in the Asian session, but the
European market has been influenced by cross flows. EUR/JPY"s lack of follow
through on the topside has seen option positions at 132.75 exert an influence
and this has left many sidelined in USD/JPY. There has been usual interbank
activity on either side of the market, but for the most part focus is elsewhere
as the EUR crosses continue to dominate price action. Into tomorrow"s session US
NFP data should drive dollar position adjustment. Note, very good offers are
noted at 108.80/00 amid another 109.00 exotic structure. This is part of a 102-
109 DNT. --Russell.Bloom@Thomson.com
EUR/USD: Edging Lower; Little Drama from Press Conference] Boston, June
2: Trichet is doing his best to impress upon the markets that the ECB is the
last best hope for the EUR, but he is having little success. EUR/USD is
beginning to drop again, easing back below intraday support at 1.2250/55. Modest
further support is at 1.2230 with more down at 1.2185. -- Jamie.Coleman@thomson.com/rs
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