CFD Markets News and Forecasts — 26-05-2020

FXStreet reports that UOB Group’s Head of Research Suan Teck Kin, CFA; Economist Ho Woei Chen, CFA and Senior Strategist Peter Chia reviewed the 13th National People’s Congress (NPC) event.

“As widely speculated, China did not set a numeric economic growth target for 2020, citing the need for policy flexibility amidst the great uncertainties in the global pandemic situation as well as the economic and trade environment. This is the first time that China did not set an annual growth target.”

“However, other economic targets including the urban employment creation, higher local government special bonds issuance quota, increase in tax and fees cuts as well as financial support suggest a reasonable economic recovery in 2H20. While it is not explicit, we think the GDP growth target is 1-4% for 2020 following the hint from NDRC. We maintain our 2020 GDP forecast for China at 1.8%.”

“China will pursue a prudent monetary policy in a more flexible and appropriate way. Overall, interest rate is expected to trend down further while the CNY exchange rate is expected to remain reasonably stable. We maintain our forecast for the 1Y LPR to be cut by a further 30 bps for the rest of the year. We also see room for another one to two rounds of RRR cut in the next 3-6 months.”

“We continue to see further near term weakness in the CNY towards 7.20 /USD by end-2Q20 before a gradual recovery to 7.10 /USD by end-4Q20.”

FXStreet notes that concerns about the ultimate economic impact of the coronavirus are still high. Investors in base metals markets will, therefore, remain cautious, according to strategists at ABN Amro.

“Since the end of March, prices for copper, nickel, and zinc are on an upward trend, mainly due to significant economic stimulus measures from the Fed, ECB, and the PBoC. With the current easing of the lockdowns, economic activity can recover and so too can copper prices. This will however be slow and bumpy.” 

“Energy costs are historically low. This translates to lower production costs for all base metals, but especially for primary aluminium. This also contributes to lower prices. As a result, even inefficient smelters are able to keep producing. Oversupply will thus continue to weigh on markets.” 

“Uncertainty is the common denominator in base metals markets and will continue to weigh on sentiment. This will raise price volatility. Moreover, there is no deficit in base metals markets anymore and inventories are higher compared to 1 January levels. This will hang over the market for some time and cap prices.”

 The U.S. Commerce Department announced on Tuesday that the sales of new single-family homes rose 0.6 percent m-o-m to a seasonally adjusted annual rate of 623, 000 units in April.

Economists had forecast the sales pace of 490,000 last month.

March’s sales pace was revised down to 619,000 units from the originally reported 627,000 units.

According to the report, new home sales in the South, the largest area, increased 2.4 percent m-o-m in April, while sales in the Northeast surged 8.7 percent m-o-m and sales in the Midwest rose 2.4 percent m-o-m. At the same time, sales of new homes in the West plunged 6.3 percent m-o-m.

In y-o-y terms, new home sales recorded a 6.2 percent drop in April.

The Conference Board announced on Tuesday its U.S. consumer confidence rose 0.9 points to 86.6 in May from 85.7 in April.

Economists had expected consumer confidence to come in at 88.0.

April’s consumer confidence reading was revised down from originally estimated 86.9.

The survey, however, showed that the expectations index increased from 94.3 last month to 96.9 this month. Meanwhile, the present situation index fell from 73.0 in April to 71.1.

Following two months of rapid decline, the free-fall in Confidence stopped in May,” noted Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “The severe and widespread impact of COVID-19 has been mostly reflected in the Present Situation Index, which has plummeted nearly 100 points since the onset of the pandemic. Short-term expectations moderately increased as the gradual re-opening of the economy helped improve consumers’ spirits. However, consumers remain concerned about their financial prospects. In addition, inflation expectations continue to climb, which could lead to a sense of diminished purchasing power and curtail spending. While the decline in confidence appears to have stopped for the moment, the uneven path to recovery and potential second wave are likely to keep a cloud of uncertainty hanging over consumers’ heads.”

• Even a lot of recovery in recent months would leave the euro area economy in expected range
• Benchmark for PEPP is the capital key
• The whole point of having flexibility is that you can deviate from capital key

S&P reported on Tuesday its Case-Shiller Home Price Index, which tracks home prices in 20 U.S. metropolitan areas, surged 3.9 percent y-o-y in March, following an unrevised 3.5 percent y-o-y increase in February.

Economists had expected an advance of 3.3 percent y-o-y.

Phoenix (+8.2 percent y-o-y), Seattle (+6.9 percent y-o-y), and Charlotte (+5.8 percent y-o-y) recorded the highest y-o-y advances in March. Overall, 17 of the 19 cities reported greater price gains in the year ending March versus the year ending February.

Meanwhile, the S&P/Case-Shiller U.S. National Home Price Index, which measures all nine U.S. census divisions, climbed 4.4 percent y-o-y in March, up from 4.2 percent y-o-y in the previous month.

"March’s data witnessed the first impact of the COVID-19 pandemic on the S&P CoreLogic Case-Shiller Indices,” noted Craig J. Lazzara, Managing Director and Global Head of Index Investment Strategy at S&P Dow Jones Indices. “We have data from only 19 cities this month, since transactions records for Wayne County, Michigan (in the Detroit metropolitan area) were unavailable. “That said, housing prices continue to be remarkably stable”, he added.

U.S. stock-index futures rose on Tuesday, as optimism about the reopening of the world's major economies and a potential coronavirus vaccine offset the U.S.-China tensions.

Global Stocks:

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

The Chicago Federal Reserve announced on Tuesday the Chicago Fed national activity index (CFNAI), a weighted average of 85 different economic indicators, came in at -16.74 in April, sharply down from a revised -4.97 in March (originally -4.19), pointing to a substantial decline in economic growth. That was the lowest level on record.

Economists had forecast the index to come in at -0.92 in April.

At the same time, the index’s three-month moving average fell to -0.55 in April from -0.32 in March. According to the report, all four broad categories of indicators used to construct the index made negative contributions in March, and all four categories dropped from March.

Production-related indicators made a negative contribution of -5.63 to the CFNAI in April, down from -2.31 in March. Employment-related indicators contributed -9.06 to the CFNAI in April, down from -1.06 in March. The contribution of the sales, orders, and inventories category to the CFNAI fell to -1.24 in April from -0.81 in March. Meanwhile, the contribution of the personal consumption and housing category to the CFNAI edged down to -0.81 in April from -0.80 in March. 

Goldman Sachs (GS) upgraded to Buy from Hold at Odeon; target $207

FXStreet notes that S&P 500 is expected to open strongly for a likely break above the 2980 high of last week for a test of its major resistance from its 200-day average at 3000. Despite the strong tone seen today, analysts at Credit Suisse, continue to look for signs of a top here.

“A broader ‘risk-on’ tone to markets is expected to see the S&P 500 open strongly for a likely break above the 2980 high of last week for a move to 2986 initially, then more likely what remains seen as its major resistance from its 200-day average and Fibonacci projection resistance at 2994/3000.” 

“We remain of the view above 3024 is needed to suggest our toping scenario is wrong and further gains can be seen with resistance seen at 3136/37 next.” 

“Support is seen at 2944 initially, then 2934, with the immediate risk seen higher whilst above the top of the price gap from last week and 13-day average at 2914/09. A close below here is needed to rekindle a bearish tone.”

USD fell against other major currencies in the European session on Tuesday as market optimism renewed as major economies around the world were continuing easing of their corona-related restrictions. The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, dropped 0.66% to 99.20.

Japan lifted the state of emergency on Monday, while the UK's Prime Minister Boris Johnson announced the reopening of shops and small businesses around the country next month, and Germany was reported to be ready to relax travel restrictions over the coming days.

The market sentiment, however, was kept in check by the U.S.-China tensions. White House National Security adviser Robert O'Brien warned over the weekend that Beijing's attempt to impose new security restrictions on Hong Kong could make Washington reconsider special trading status with Hong Kong, which would lead to sanctions against China and Hong Kong. Meanwhile, China's foreign minister accused "some U.S. political forces” that "are taking hostage of China-U.S. relations" of pushing "the ties to the brink of the so-called new Cold War”. China's President Xi Jinping told the state television on Tuesday that the country would increase preparations for military combat.

FXStreet notes that the UK negotiations with the EU will again draw attention and weigh negatively on the GBP, which leads economists at Danske Bank to forecast EUR/GBP at 0.90 in 1-6 months. 

“We expect the BoE to keep policy rates unchanged. That said, deputy governor, Ben Broadbent has not completely ruled out cutting into negative territory. The new governor Bailey has hinted that the BoE may increase its QE program, in line with our expectations.” 

“We expect GBP to weaken driven by further Brexit tensions, especially ahead of the decisions on a possible extension of the transition period, financial services, and fishing before 1 July. We probably need to get close to the year-end deadline before a trade deal is reached.” 

“We see EUR/GBP at 0.90 over 1-6M, followed by a move towards 0.86 on a trade deal in 12M.”

• Performance in fighting the coronavirus shows results of military reform
• Asks China military to strengthen training, war preparations
• Should explore ways of military training amid coronavirus pandemic

FXStreet reports that analysts at Credit Suisse apprise that the EUR/CHF short-term trend seems to be shifting higher, with key resistance seen at 1.0651/62. 

“The short-term trend seems to be shifting modestly higher, as the market is now holding above key short-term averages which have crossed higher, with daily MACD also remaining firmly above zero for the first time this year.” 

“We see resistance initially 1.0633, then 1.0651/62, removal of which would now trigger a base to suggest further strength. Resistance is seen thereafter at 1.0704/17, the 38.2% retracement and March highs, before the 50% retracement and 200-day average at 1.0775/88, where we would look for a cap if reached to reassert the medium-term downtrend.” 

“Support is seen initially at 1.0585/76, then 1.0565, ahead of 1.0505/00. A clear and closing break below here would instead suggest the medium-term downtrend is directly resuming and should finally allow downside momentum to re-accelerate.”

FXStreet reports that Jane Foley, a senior FX strategist at Rabobank, highlights the main points of the CFTC speculators' report for the week ended on May 19th, 2020. 

“USD net longs edged higher for a ninth consecutive week following the mid-March dip. The upward bias is despite the slew of Fed measures aimed at helping USD liquidity.”    

“EUR net longs have dipped lower but remain at relatively elevated levels. The Eurozone’s current account surplus has supported the EUR since the start of the crisis.” 

“Net short GBP positions continued to increase as Brexit fears resume and as criticism grows as to the UK government’s handling of the coronavirus crisis. Comments from BoE Governor Bailey and other MPC members that negative rates have not been ruled out are also GBP negative.” 

“JPY net long positions edged lower but remained mostly consolidative. The safe-haven JPY is likely to be sensitive to any further intensification of tensions between the US and China.”  

“CHF net long positions surged to their highest level since June 2016. The safe-haven CHF is particularly sensitive to political uncertainty within the Eurozone, so the reactions to this week’s European Commission budget could be key.”     

“CAD net short positions continued to grow albeit at a moderate pace. The CAD remains sensitive to the oil prices but USD/CAD trading has been range-bound in the spot market recently.”  

“Net AUD short positions increased again. Concerns about US/China and Australian/China tensions leave the AUD vulnerable given its China trade links.”

• UK economy probably shrank by more than 20% in Q2
• Data coming just a shade better than central bank scenario
• Surveys show some stabilisation; modest recovery in spending, business sentiment
• No one is predicting a sharp bounceback
• This is perhaps a V-shaped recovery but a lopsided V akin to a protracted recovery
• Jobs may not return to pre-virus levels until 2023
• BoE is reviewing evidence on negative rates
• Key issues to consider are consequences on financial sector, economic confidence

The Confederation of British Industry (CBI) reported on Tuesday its latest survey of retailers showed retail sales volume balance stood at -50 in the year to May, up from -55 in April, which marked the fastest drop since the start of the survey in 1983.

Economist had forecast the reading to increase to -50.

Retail sales volumes are expected to fall at a slightly slower – but still historically fast - pace next month as well.

The report also revealed that orders placed on suppliers fell at a quicker pace than April (-56, down from -48), while stock levels in relation to expected sales rose to their highest since October (+45, up from +36). Retailers also reported prices as being broadly flat in the year to May (+3, compared to +51 in February). This was the lowest balance since August 2016. Expectations for price growth over the year ahead were the weakest since November 2015 (+7, compared to +62).

In other survey results, investment intentions for the distribution sector as a whole dropped at their fastest pace in survey history (-69, down from +8 in February), while employment declined at the steepest pace in ten years in the 12 months to May (-33, down from -23).

Rain Newton-Smith, CBI Chief Economist, noted: “As we gradually reopen the economy, retailers may yet need more support from the government if demand falters. Ensuring safety in the workplace remains the top priority, as more firms look to bring staff back to work. Many challenges remain in managing supply chains and costs in a tough environment.”

FXStreet reports that senior Economist at UOB Group Alvin Liew assessed the recent BoJ event and the prospects of extra easing by the central bank in the next months.

“In its unscheduled Monetary Policy Meeting (MPM) on Friday (22 May), the Bank of Japan (BOJ) as widely expected, kept all of its existing monetary policy easing measures unchanged from the 27 April 2020 MPM.”

“The reason for the emergency MPM is to introduce a new fund-provisioning measure to further support financing mainly of small and medium-sized firms/enterprises (SME).”

“The BOJ will call the three measures, the Special Program to Support Financing in Response to the Novel Coronavirus(COVID-19) (i.e. the Special Program, which will amount to about JPY 75 trillion).”

“With the expansion of the program to help SMEs, the BOJ is likened to have created its own version of the US Federal Reserve’s “Main Street” lending program to channel funding to small businesses, as part of a broader scheme to save companies and to keep the COVID-19 pandemic from pushing the economy deeper into recession.”

“We have long held the view that the BOJ will resume its monetary easing in 2020 and we still expect the BOJ to do more. We believe the central bank will ease further down the road via deepening its negative policy call rate to -0.2% (from -0.1%), with potentially other measures to follow if the domestic economic situation turns even more dire which it most likely will, with the latest plunge in exports and industrial production.”

FXStreet reports that economists at Danske Bank believe EUR/USD will remain range-bound and target 1.07 in 12M while an uptick in global reflationary trends continues to be the key upside risk. 

“The potential for a higher EUR/USD is closely linked to global reflationary trends and such a shock is indeed a notable but, in our view, unlikely upside risk.” 

“We forecast EUR/USD at 1.09 in 1-3M, as we see the EUR as embedding enough institutional risk premium, at least for now. Longer-term, we forecast EUR/USD at 1.07 in 6-12M.”

FXStreet reports that OCBC Bank’s strategists think the current oil rally needs to take a breath though the price is expected to hit $40 by year-end.

“With Brent now having tested the $35/bbl resistance, we maintain our view that this bull run is in need of a breather, albeit short-lived.”

“The lacklustre crack margins are a sign that oil prices have run up too fast, and more time is needed for downstream prices to rise given that reopening of economies is just starting.” 

“Beyond the short-term we remain bullish on prices, with an eye on Brent closing at around $40/bbl by the end of 2020.”

CNBC reports that member of the ECB said that the European Central Bank (ECB) should not need to take into account the size of a country’s economy when buying government bonds as part of its stimulus program.

The comments by Banque de France Governor François Villeroy de Galhau come after the German constitutional court said earlier this month that the ECB should keep that link to avoid the risk of distorting markets.

The ECB has been buying large amounts of government bonds as part of its wider effort to mitigate the economic fallout from the coronavirus crisis. Its Pandemic Emergency Purchase Program (PEPP), announced in March, will see it buy 750 billion euros ($818 billion) by the end of the year. However, the program is different from other bond-buying initiatives, where the central bank links its monthly purchases to the size of a country’s economy.

Speaking to CNBC Tuesday, de Galhau said the stimulus program should remain flexible.

“We are open on the volume, we are open on the end date — which is linked to the end date of the Covid crisis, and in any case not before the end of this year. But still more, if we want to guarantee the maximal efficiency of PEPP, we should not be bound to capital keys,” he said. 

“Some central banks should be able to buy more; and others to buy less. If it’s needed to prevent unwarranted fragmentation, unwarranted market dynamics or liquidity gaps which we could have in the market.”

The German court ruling was on a separate ECB stimulus program.

De Galhau’s comments follow a speech Monday in which he said the ECB will probably have to do more to keep the euro zone afloat. 

In addition to the ECB’s stimulus program, European governments are also working on additional plans to prop up the region as it faces the deepest crisis since the 1930s.

Reuters reports that China's banking and insurance regulator said on Tuesday that bad loans at banks now stand at a high level due to the impact of the coronavirus pandemic.

"Asset quality at smaller banks will also be under pressure this year, and credit risks in some institutions will continue to accumulate," according to a statement sent by China's Banking and Insurance Regulatory Commission (CBIRC) to Reuters.

Chinese lenders recorded rising soured debt and shrinking net interest margins, a gauge of banks' profitability, amid the economic impact from a prolonged pandemic.

Small firms have been allowed to delay loan and interest repayments to help them weather the dislocation in the economy caused by the lockdown ordered while bringing China's epidemic under control.

The country's largest state-backed lenders posted stable first-quarter results despite the impact of the virus. But smaller lenders, who have less capital reserves and lend less to well-financed state borrowers, would be more vulnerable to the resulting economic slowdown.

The non-performing loan (NPLs) ratio of country's 134 city commercial banks stood at 2.49% by the end of March, while that of thousands of rural banking institutions was at 4.9%, the CBIRC said on Tuesday. That was higher than the industry-wide average NPL ratio of 2.04% by the end of first quarter.

Moreover, analysts believe the real amount of bad debt on banks' books is much higher than reported.

FXStreet reports that strategists at TD Securities go long on USD/CNH on a deterioration in US-China relations, as well as detected changes in the USD/CNY fixing beta.

“The proximity to recent political events suggests to us that Chinese policymakers will no longer subjugate renminbi policy to maintaining goodwill in US-China trade relations. We instead see policymakers prioritizing FX adjustment to the Covid-19 global trade shock and assistance in easing monetary conditions.” 

“We do not think that there will be an intentional outright politicization of the renminbi, which we would characterize by a substantial (10%-plus) idiosyncratic depreciation against the USD.”

“We go long 12mth USD/CNH forward in our model portfolio at 7.2477 (7.1490 spot reference). Spot take profit and stop-loss references are 7.5060 and 6.9700 respectively. Current indicative 12mth spot forward take profit and stop loss levels are 7.6100 and 7.0665 respectively.”

RTTNews reports that the Bank of Japan will not hesitate to take additional easing measures if required as the novel coronavirus, or Covid-19, depressed global activity, Governor Haruhiko Kuroda said on Tuesday.

Japan's economy has been in an increasingly severe situation due to the impact of the spread of Covid-19 at home and abroad, Kuroda said in a semi-annual testimony to parliament.

As the impact of the spread wanes, Japan's economy is likely to improve. The annual rate of change in consumer prices is expected to increase gradually, he added.

However, the outlook for economic activity and prices is extremely unclear, he said.

The BoJ last week introduced a new lending program worth about JPY 30 trillion to help financing small and medium-sized firms struggling to operate.

FXStreet reports that the crude oil price gained yesterday, as supply cuts deepened amid suggestions that demand was recovering strongly, strategists at ANZ Bank apprise. 

“Russia reached its target under the OPEC+ supply agreement, reducing output by 2mb/d, according to RIA Novosti. The Russian oil ministry also said that global supply had fallen by 15mb/d and that it expects a balanced market as early as June.” 

“The IEA pushed back on the idea that global oil consumption had already peaked. Executive Director Birol said that a sustained economic recovery and low oil prices would take oil demand back to where it was before the pandemic, and beyond.” 

“Brent crude oil futures push above $35/bbl. However, the gains were limited by geopolitical tension. The US blacklisted 33 Chinese firms from using US technology, which resulted in a rebuke from the Chinese foreign ministry. China’s Foreign Minister Yi suggested some in the US were pushing relations to a new ‘cold war’.”

During today's Asian trading, the US dollar fell against the euro, the pound, and Asian currencies, but strengthened against the yen.

Demand for the dollar, as well as other safe haven assets, including the yen, is declining amid the gradual lifting of restrictions imposed around the world to curb the spread of COVID-19 coronavirus infection.

In Japan, the day before, the state of emergency, introduced earlier because of the coronavirus, was canceled. India is gradually resuming domestic flights, and more and more restrictive measures are being lifted in European countries.

Meanwhile, the American pharmaceutical company Novavax reported that it has started clinical trials of the COVID-19 vaccine.

"The gradual removal of restrictions around the world, as well as new hopes for the emergence of a vaccine, weaken the attractiveness of the assets of the "safe haven", - said analysts at Oanda.

The ICE index, which tracks the dynamics of the us dollar against six currencies (the euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona), fell 0.3% in trading on Tuesday.

Reuters reports that the mood among German exporters recovered somewhat in May after a "catastrophic" April, the first full month of coronavirus lockdown measures in Europe's largest economy, the Ifo institute said on Tuesday.

"Virtually every sector still expects further declines, yet these will be less sharp than had been expected in the previous month," the Munich think tank said in a monthly release.

The Ifo export indicator, based on a survey of around 2,300 manufacturing businesses, rose in May to -26.9 from -50.2. It is a net reading for respondents expecting an increase minus those who see a decline.

FXStreet reports that cable is expected to keep the consolidative mood unchanged in the next weeks, according to FX Strategists at UOB Group.

24-hour view: “The quick bounce from a low of 1.2166 yesterday has resulted in an up-tick in momentum. While this could lead to a slightly higher GBP, any advance is viewed as part of a 1.2180/1.2240 range. In other words, a sustained rise above 1.2235 is not expected for today.”

Next 1-3 weeks: “GBP traded in a quiet manner over of the few days and there is not much to add to our update from last Wednesday (20 May, spot at 1.2260). As highlighted, GBP is trading in a consolidation phase even though a 1.2100/1.2320 range is likely enough to contain the price action in GBP for a while more (range narrowed from 1.2100/1.2400 previously).”

According to the report from GfK Group, consumers in Germany have recovered somewhat in May following the shock triggered by the COVID-19 pandemic. Both economic and income expectations, as well as propensity to buy, are on a slight increase. As a result, GfK forecasts a figure of -18.9 points for June 2020, 4.2 points higher than its level in May of this year (revised to -23.1 points). 

When data was being collected for April's GfK Consumer Climate Study, many consumers in Germany were shocked about the awful pictures coming out of Northern Italy, New York and Spain. This contributed to an unprecedented collapse in consumer sentiment. The consumer climate did not witness any further decreases in May. Nevertheless, the value of -18.9 points is the second-lowest value that has ever been recorded for the GfK Consumer Climate in Germany.

"The gradual opening of many businesses has certainly contributed to the propensity to consume not having to take any further hits, and increases even slightly at the present time," explains Rolf Bürkl, GfK Consumer Expert. "Nevertheless, uncertainty among consumers is high. In their opinion, the Germany economy is far from being over the hump and they are anticipating a tough recession. Anxiety over job losses remains high and has proven to be a key barrier to consumption at this time, alongside losses in income. Retailers and manufacturers must continue to adapt to this situation."

The improvement in the consumer climate is backed by a decrease in propensity to save (-9.8 points). After decreasing twice in a row, economic expectations increased again somewhat in May. The indicator rose by eleven points and stands now at -10.4 points. Nevertheless, this is still significantly below the longtime year average of around zero points, and below last year's value (-12.1 points).

• CNBC reports that the number of coronavirus cases in the U.S. topped more than 1.6 million as deaths rose to more than 97,000, a tally from Johns Hopkins University shows. 

• President Donald Trump threatened to pull the Republican convention out of North Carolina if the governor’s coronavirus restrictions impose a limit on the number of people who can be in attendance in August.

• WHO Director-General Tedros Adhanom Ghebreyesu announced that the agency is temporarily suspending its trial of hydroxycholoroquine, the drug backed by Trump to combat the deadly coronavirus, over safety concerns. 

• Meanwhile, in Southeast Asia, Singapore slashed its growth forecast for the third time this year. 

• Global cases: More than 5.4 million

• Global deaths: More than 346,200

EUR/USD

Resistance levels (open interest**, contracts)

$1.1018 (1692)

$1.0981 (1263)

$1.0951 (1482)

Price at time of writing this review: $1.0921

Support levels (open interest**, contracts):

$1.0874 (1636)

$1.0861 (784)

$1.0841 (1426)

Comments:

- Overall open interest on the CALL options and PUT options with the expiration date June, 5 is 92979 contracts (according to data from May, 22) with the maximum number of contracts with strike price $1,0700 (5276);

GBP/USD

Resistance levels (open interest**, contracts)

$1.2412 (1211)

$1.2329 (606)

$1.2265 (324)

Price at time of writing this review: $1.2217

Support levels (open interest**, contracts):

$1.2105 (1051)

$1.2078 (1409)

$1.2011 (1142)

Comments:

- Overall open interest on the CALL options with the expiration date June, 5 is 23784 contracts, with the maximum number of contracts with strike price $1,3500 (3420);

- Overall open interest on the PUT options with the expiration date June, 5 is 29689 contracts, with the maximum number of contracts with strike price $1,3500 (3095);

- The ratio of PUT/CALL was 1.25 versus 1.24 from the previous trading day according to data from May, 22

* - 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.