Durable goods to complete the rout?
City Index April 24, 2015 6:59 PM
<p>The market in Asia remains subdued as the NZD continued to trade under pressure following dovish comments from the RBNZ which has the led the […]</p>
The market in Asia remains subdued as the NZD continued to trade under pressure following dovish comments from the RBNZ which has the led the market to price in a rate cut for June.
The euro continued to trade with high volatility as early European trading witnessed a sharp rally to overnight highs of 1.0850 on short covering flows. The German IFO index reiterated the same pattern as the ZEW survey as the headline number beat expectations of 107.90 from 108.60 although the components revealed a mixed picture as the current assessment rose to 113.9 from 112 as expectations dropped 4 tenths to 103.50. The IFO economists then initiated a rally to 1.09 as they described the prospects for the German Economy to remain ‘very good’ as a ‘low’ Euro exchange rate is compensating for sluggish growth in some areas.
The Eurogroup meeting then reversed the euro rally as they described a huge gulf of differences between Greece and their creditors with the meeting in Riga concluding in true European fashion. The can was kicked further along the street as the spokesman concluded that further negotiations will continue at the next meeting in May, as the single currency dropped back to 1.0820 on the continued uncertainty surrounding a messy Grexit.
The focus this afternoon will be on the durable goods data from the US and if the weather improvements can spark a Q2 growth recovery. The market is looking for a rebound to 0.6% from -1.4% in February.
Supports 1.0780-1.0650-1.0505 | Resistance 1.0900-1.-1.1005-1.1200
Supports 118.80-118.30-117.50 | Resistance 120.00-120.85-121.55
Supports 1.5050-1.4980-1.4800 | Resistance 1.5170-1.5270-1.5400
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