As for FCPO, market eroded Friday as bearish sentiment dominated. Fresh factors were lacking. Selling was prompted by concerns over lack of support inspite of steadiness in CBT soyoil and China Dalian futures. Crude mineral oil also rose sharply. Sentiment was undermined by news that Indonesian export levies will not be introduced until July or August. Talks of slow down in exports the last few days also affected support. Prices were 2 to 17 lower in the morning and extended losses to 31 lower in the afternoon.
Sentiment is generally negative in view of the seasonally higher production in coming months. Adding weight was the scaling up of South American soyabean crop. The news of delay in the Indonesian export levies rendered this supporting factor uncertain, which can have a reverse impact. Export numbers will be followed in the coming week with expectations of slower pace vs the previous weeks.
Technical view - the drop to new low kept indicators negative. Prices may fill the gap at 2108. Ringgit ~ 3.5820 / 3.5850 vs USD. Trend down ; RSI 44.0 ; stochastic turning up from oversold ; macd intersected trigger line from above ; support 2110 / 2070 / 2000 ; resistance 2200 / 2235 / 2270 / 2320.
As for other news...
🇺🇸 Fed Chair Janet Yellen said “If the economy continues to improve as I expect, I think it will be appropriate at some point this year to take the initial step to raise the federal funds rate.” She added that delaying the first rate increase until unemployment and inflation return to the Fed’s objectives “would risk overheating the economy.”
🇺🇸 U.S. stocks closed lower on Friday, failing to hold highs touched during the session, as investors eyed inflation data and Fed Chair Yellen's speech ahead of the long weekend.
🇺🇸 The U.S. Apr CPI report of +0.1% m/m and -0.2% y/y was right in line with expectations.
€ European equities closed mixed on Friday as investors focused on a central banking forum in Portugal and a speech from U.S. Federal Reserve Chair Janet Yellen.
🇨🇳 China's Shanghai Stock Index closed up +2.83% at a new 7-1/4 year high on speculation that recent weak economic data will spur the Chinese government to boost stimulus measures. Moreover, "unused funds from recent new-share listings have been repositioned back into the domestic market," wrote IG's chief market strategist Chris Weston in a note.
🇯🇵 Japan edged up to finish the week at their highest levels in 15 years. The Tokyo bourse had slipped into the red earlier in the day as investors awaited the BOJ's decision.
🇯🇵 IMF warned the Bank of Japan will take longer than it expects to hit its inflation target even with more monetary easing, and said "bolder" structural reforms are required to shake off an entrenched deflationary mindset.
⛽ WTI oil futures settled modestly lower after Baker Hughes reported its weekly U.S. oil rig count fell by just 1 rig.
👑 Gold closed modestly lower, marking its biggest weekly decline in four weeks, as the dollar rebounded after a stronger-than-expected rise in U.S. core consumer prices in April. Now, $1,203
🌴 Malaysian palm oil futures (RM2,135) fell on Friday and were headed for their biggest weekly drop in three, on rising scepticism among investors about the sustainability of the robust export demand seen this month. Sentiment was generally negative in view of seasonal higher production in the coming months. The drop to new low kept indicator negative. Price may fill the gap of 2108.
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