FXstreet.com (Córdoba) - Market sentiment remains resilient in spite of the recent deterioration in global economic data, according to BBH analysts. "Yesterday's weak US manufacturing PMI is consistent with other recent data that suggest the US economy is slowing more than previously expected".
"The prospects of a weak employment report will surely spur speculation of Fed QE3 and may help support foreign currencies against the dollar and provide a temporary boost to EM and other 'risk' markets", they say. "The combination of potential easing this week from the ECB and BOE has been largely priced in, with today's lower than expected euro zone PPI print of 2.3% y/y icing on the cake".
"$1.2700 high from Friday is the first upside objective ahead of June high near $1.2750, while a break below $1.2500 is needed to negate the euro's recent corrective rally", they conclude.
"The prospects of a weak employment report will surely spur speculation of Fed QE3 and may help support foreign currencies against the dollar and provide a temporary boost to EM and other 'risk' markets", they say. "The combination of potential easing this week from the ECB and BOE has been largely priced in, with today's lower than expected euro zone PPI print of 2.3% y/y icing on the cake".
"$1.2700 high from Friday is the first upside objective ahead of June high near $1.2750, while a break below $1.2500 is needed to negate the euro's recent corrective rally", they conclude.
