China woes continue but is anyone listening?
City Index February 25, 2014 2:14 PM
<p>The S&P traded above the 1850 resistance level I mentioned last week, buoying the Asian session. My equity trader contacts tell me that ‘there are […]</p>
The S&P traded above the 1850 resistance level I mentioned last week, buoying the Asian session. My equity trader contacts tell me that ‘there are a lot of positive M&A stories around.’ This makes sense as the Nikkei rallied overnight on reports that Softbank are considering acquiring the SMS component of South Korea’s Naver. The equity/risk positive theme again escaped the Shanghai composite that closed down 2%, again putting further pressure on CNY/CHN.
Shadow banking concerns and apparent lending restrictions from banks to property developers again led to a higher fixing price of 6.1184, with the intraday spot price reaching a high of 6.1250. Some are speculating that the CNY revaluation story could be coming to an end as the new regime may look to widen the current trading band.
Unfortunately the rest of the G10 currency space looks to be caught in a very dull range trading pattern as the euro continues to grind higher, squeezing shorts as we push towards 1.3800. Cable price action was dominated by M&A activity, rumoured to be from Vodafone/Verizon rebalancing.
The data calendar is sparse today as I’m sure US housing data will no doubt be weather distorted (again), with the only highlight likely to be the US consumer confidence reading.
Supports 1.3700-1.3660-1.3580 | Resistance 1.3780-1.3825-1.3895
Supports 102.15-101.75-101.45 | Resistance 102.80-103.00-103.50
Supports 1.6580-1.6540-1.6500 | Resistance 1.6720-1.6750-1.6820
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