Cyprus to dominate in headline trading
City Index March 21, 2013 12:35 PM
<p>The US dollar regained its losses following the FOMC announcement last night although there was nothing in the statement the market hadn’t expected, with the […]</p>
The US dollar regained its losses following the FOMC announcement last night although there was nothing in the statement the market hadn’t expected, with the board sighting that although there are signs that the labour market is improving there are concerns for Q4 growth as the sequester cuts kick in. The Fed yesterday seemingly left asset purchases at current levels for the foreseeable future. In other news the China HSBC manufacturing PMI number for March came in at 51.7, higher than the consensus of 50.8 but there was a muted market reaction to the release.
In the antipodeans world New Zealand Q4 GDP came in at its highest level for three years at a solid 1.5% versus the expected 0.9%. Across the Tasman the Australian PM called a snap leadership vote only for no one else to stand against her.
The market will be dominated by headlines today from the Cypriot circus as the new BoJ Governor Kuroda holds his first press conference at 9am this morning. I doubt he will want to disappoint the market so I expect hard line stimulus talk although overnight we did hear a negative comment from finance minister Aso that “2% inflation in two years may not be so easy.”
Today’s data consists of PMI figures from Europe along with retail sales from the UK this morning, with the US session highlights being the weekly initial claims, flash PMI and Philadelphia business survey.
Supports 1.2840-1.2710-1.2660 | Resistance 1.2980-1.3000-1.3020
Supports 95.30-94.80-93.70 | Resistance 96.30-97.20-97.80
Supports 1.5100-1.5060-1.4980 | Resistance 1.5180-1.5220-1.5280
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.