EUR continued weakening in early morning trade

Market Commentary

European session started out on a quite note for the equity space: both EU equity indexes and US equity index futures spent the majority of the morning session range-bound to slightly higher. More recently, equity indexes ticked lower in a move that seems to have been triggered by a large volume sell order going through the Sept Eurostoxx 50 futures.

Intraday performance in the FX space has been mixed so far today. Having stabilized in overnight trade just above the 1.66 handle, cable rallied to set the high of the day at 1.6679 follow-ing the release of BoE minutes. The minutes highlighted a 7-2 vote in favour of keeping the benchmark interest rate at 0.50%. Two dissenters called for a rate rise of 0.25%.

EUR continued weakening in early morning trade, with the EUR/USD descending to levels not seen since September 2013.

The outlook for the rest of the afternoon does not bode for a busy session in terms of economic data. The release of FOMC minutes at 7PM BST is the main event for the day.

Intraday Strategy: E-mini S&P

Our strategy for today’s session revolves around a cautious short at the highs of the year, targeting the pivot and S1. Momentum is a critical determinant of the viability of this setup - watch for signs of waning momentum/consolidation at the highs.

Intraday Strategy: DAX

Our strategy for the Dax for today’s session is to sell into waning upside momentum at yesterday’s high, targeting S1 and S2.

Intraday Strategy: EUR/USD

Our strategy for the EUR/USD is to sell into a pullback to the pivot, targeting S1 and the low of the session set in the morning trade.

Technical Analysis: Nasdaq and DJIA

Technical Analysis: Bund and US 10-year T-note Futures

Technical Analysis: GBP/USD and USD/JPY

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