Market Brief
Risk appetite was still off overnight as the negative-euro sentiment has not completely faded. Two events are to determine investor positioning during this start of the week, the first being the June 28-29 EU summit, the second sovereign note auctions taking place today and tomorrow. The EU summit will show whether the stance of Angela Merkel has shifted amid increasing pressure on Germany to align with most of the bloc's members over measures spurring growth, and a more united fiscal front to help fit the worsening regional crisis. The EUR dropped overnight by 0.19% against the USD, registering a 5.66% depreciation for the since May. High-Beta currencies also extended their decline since last week's FOMC statement showing strong concern for slowing global growth. The CAD was the worst performer against the greenback falling 0.33% and risk-driven AUD could not counter its downward move started last Thursday and lost 0.32% further against the dollar, trading around 1.0016 at 6:40 GMT. China lowered its daily fixing during the weekend by 0.30%, in view of the current global setting, driving the CNY lower by 0.11% to 6.3787 per USD. Japan is to vote soon on Noda's sales tax 200% increase to help battling against rising social costs. The tax initiative has found violent opposition in opposing parties and within the Prime Minister's own ranks. The JPY depreciated by 0.12% against the USD due to the political and budgetary uncertainty, and the Nikkei dropped 0.72% overnight. Asian equity markets were also affected by the general gloom, as Shanghai Composite Index fell 1.07% and TOPIX 1.38%. Germany will be conducting a 12-Month Bubill auction at 09:30 GMT. 12-Month sovereign yields are expected to drop seen as the 10-Year Bund yields 1.5437% today, 3.45 basis points lower than on Friday. During the US session, New Home Sales figure will be released at 14:00 GMT. Market consensus is an increase 3K over a previous 343K to 346K.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 8734.62 | -0.72 |
| Hang Seng Index | 18982.26 | -0.07 |
| Shanghai Index | 2236.73 | -1.07 |
| FTSE 100 Index | 5513.69 | -0.94 |
| DAX Index | 6263.25 | -1.25 |
| SMI Index | 5989.33 | -0.38 |
| DJIA Index | 12640.78 | 0.53 |
| Global Indexes | Current Level | % Change |
| Gold | 1572.4 | 0 |
| Silver | 26.87 | -0.15 |
| VIX | 18.11 | -9.81 |
| Crude wti | 80.14 | 0.48 |
| USD Index | 82.36 | 0.13 |
| Todays Calender | Estimates | Previous | Country / GMT |
| SP PPI | 2.70% | 3.10% | EUR/07:00 |
| GE 12-M Bubill Auction | -- | 0.03% | EUR/09:30 |
| Chicago Fed National Activity | -- | 0.11 | USD/12:30 |
| US New Home Sales | 346K | 343K | USD/14:00 |
| US 6-M Bill Auction | -- | 0.15% | USD/15:30 |
Currency Tech
EURUSD
R 2: 1.2824
R 1: 1.2748
CURRENT: 1.2505
S 1: 1.2436
S 2: 1.2367
GBPUSD
R 2: 1.5848
R 1: 1.5793
CURRENT: 1.5572
S 1: 1.5549
S 2: 1.5476
USDJPY
R 2: 81.33
R 1: 80.56
CURRENT: 80.07
S 1: 79.830
S 2: 79.330
AUDUSD
R 2: 1.0104
R 1: 1.0055
CURRENT: 1.0017
S 1: 0.9962
S 2: 0.9850
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
