EUR rally not enough to reverse fortunes -A...>

FOREX: EUR rally not enough to reverse fortunes

-A late-in-the-day EUR rally saw EUR/USD surge over 50 pips in no time at all,

but the shift higher and the accompanying volume spike (futures saw over 13,000

contracts change hands inside five minutes, equivalent to E1.6bln) proved

insufficient to turn the tides in favour of a more prolonged reversal. EUR/USD

failed to take out the 50-dma resistance at $1.1255, which remains the first

target for bulls.

-Elsewhere, the sour risk sentiment is evident across G10 FX, with JPY and CHF

continuing to outperform at the expense of AUD, SEK and CAD. Global equity

markets retreated further, with the S&P 500 breaking below the 50-dma for the

first time since early December. The resulting squeeze on US Treasury yields

kept USD strength at bay and further propped up the JPY to touch 3 month highs

against the greenback.

-Attention turns to the RBA Statement of Monetary Policy, UK prelim GDP for Q1,

US CPI and the Canadian jobs numbers for April. Any fallout from Trump's meeting

with the China trade team will also be carefully eyed, due to continue Friday.