Europe Brief: Bad Services PMI data out of the Euro countries. Italy 49.8 vs 52.0 f/c. France 50.3 vs 51.1 f/c. Germany 54.9 vs 56.4 f/c. Euro Zone 53.1 vs 53.5 f/c. The UK PMI print beat expectations, at 60.5 vs 58.5 f/c. Bit of confusion with the Ukraine headlines. Poroshenko’s website announced that Ukraine and Russia agreed on a permanent ceasefire in Donbass region, but a Putin spokesman denied this just 45 minutes later.
Global Markets: European equities are trading higher this noon with the DAX up 1.20 %, FTSE 100 gaining 0.75 %, CAC and Euro Stoxx rising 1.20 %. The US 10 year yield stands at 2.46. Commodities slightly higher; Gold at $1267 (+0.20 %), Silver at $19.18 (+0.15 %) and Crude Oil at $93.70 (+0.90 %).
FX Overview: Choppy price action in FX amid confusion about the Ukraine headlines. EUR/USD started the EU session at 1.3123 and slowly rose towards 1.3140. The bad PMI data pushed it back towards the session low, but the news of a ceasefire agreement between Russia and Ukraine led to a rally above 1.3150. Despite the ceasefire news being false, the pair was able to sustain momentum and is now consolidating around the 1.3150 level. It’s possible we’ll see another round of short covering on worries that Draghi might disappoint and there are plenty of trailing stops on the way to 1.32. Specs unlikely to be keen to sell the Euro pre-ECB, unless we’ll see a larger rally extending above 1.32.
Cable rose to a high of 1.6497 after the better than expected PMI print, but the topside was capped amid on-going selling interest from real money and leveraged names. The price action today says a lot and I think the Pound will remain under pressure for a while. Immediate tech support at 1.6444, but then not much until 1.6341 (Dec ’12 high) and 1.6250 (Feb ’14 low).
Profit-taking from specs and corporate supply pushed the USD/JPY lower in early EU trading, but the pair bounced twice off 104.85 support and is now at 105.12. No tier 1 US data releases today, but we have Factory Orders data at 1500 BST. Bids reported at 104.80, stops through 104.75 and good support from 104.60 down to 104.50. To the topside, larger offers in front of the 105.45 resistance level and the 105.50 barrier.
Good luck!
Global Markets: European equities are trading higher this noon with the DAX up 1.20 %, FTSE 100 gaining 0.75 %, CAC and Euro Stoxx rising 1.20 %. The US 10 year yield stands at 2.46. Commodities slightly higher; Gold at $1267 (+0.20 %), Silver at $19.18 (+0.15 %) and Crude Oil at $93.70 (+0.90 %).
FX Overview: Choppy price action in FX amid confusion about the Ukraine headlines. EUR/USD started the EU session at 1.3123 and slowly rose towards 1.3140. The bad PMI data pushed it back towards the session low, but the news of a ceasefire agreement between Russia and Ukraine led to a rally above 1.3150. Despite the ceasefire news being false, the pair was able to sustain momentum and is now consolidating around the 1.3150 level. It’s possible we’ll see another round of short covering on worries that Draghi might disappoint and there are plenty of trailing stops on the way to 1.32. Specs unlikely to be keen to sell the Euro pre-ECB, unless we’ll see a larger rally extending above 1.32.
Cable rose to a high of 1.6497 after the better than expected PMI print, but the topside was capped amid on-going selling interest from real money and leveraged names. The price action today says a lot and I think the Pound will remain under pressure for a while. Immediate tech support at 1.6444, but then not much until 1.6341 (Dec ’12 high) and 1.6250 (Feb ’14 low).
Profit-taking from specs and corporate supply pushed the USD/JPY lower in early EU trading, but the pair bounced twice off 104.85 support and is now at 105.12. No tier 1 US data releases today, but we have Factory Orders data at 1500 BST. Bids reported at 104.80, stops through 104.75 and good support from 104.60 down to 104.50. To the topside, larger offers in front of the 105.45 resistance level and the 105.50 barrier.
Good luck!
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