China PMI holds risk firm as USD/JPY trades on 80.00

<p>EUR/USD Range: 1.3211-1.3260 Support: 1.2950 Resistance: 1.3350 The euro continues to trade steady as the market digests the recent Greek bailout, with risk getting a […]</p>

EUR/USD

Range: 1.3211-1.3260
Support: 1.2950
Resistance: 1.3350

The euro continues to trade steady as the market digests the recent Greek bailout, with risk getting a boost following a stronger Chinese PMI reading of 49.7 from 48.8 last month. Today we see the release of eurozone PMI numbers, with expectations of a slight rise to 50.8 from 50.4 still showing a meagre pace of economic growth. Greece may have secured its second bailout but there is much media speculation that the Greek government is racing to complete the checklist of reforms demanded by its lenders adding the short timetable and tough conditions reflecting a lack of trust between Greece and its lenders.

 

GBP/USD
Range: 1.5764 – 1.5796
Support: 1.5740
Resistance: 1.5850

Sterling lost some of its shine yesterday afternoon as a large EUR/GBP buy order was executed in the market by a prominent European house although the 0.8400-25 level is still seen as good technical resistance. The European market seems to have developed a theme of selling the pound ahead of UK data releases in anticipation of more doom and gloom. Today sees the release of BoE minutes, with the bank vote expected to be 9-0 on rates and 8-1 in favour of increased asset purchases.

 

 

USD/JPY

Range: 79.68-80.08
Support: 79.30
Resistance: 80.25

USD/JPY has finally broken through the barriers at 80.00 as the supporting US yields and oil price rise have increased investor appetite for the carry trade keeping the JPY firmly on the back foot. Although the trend seems firmly in place we are approaching some important technical resistance levels with 80.25 seen as the post intervention highs last August and the 21-month moving average seen at 80.50.

 

 

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