EU meeting adds pressure to the Euro

<p>The FX market is hoping for a little more inspiration today following the Veterans Day Holiday in the US yesterday and Diwali celebration across Asia. […]</p>

The FX market is hoping for a little more inspiration today following the Veterans Day Holiday in the US yesterday and Diwali celebration across Asia. The market’s focus remains firmly on Greece, with eurozone finance ministers meeting announcing that they will give Greece two extra years to meet their budgetary targets although the next tranche of financial aid has been postponed until November 20, with the latter announcement adding pressure to risk trade and the single currency.

Risk trade sentiment was dealt further blows following weaker industrial production from Japan and the NAB business confidence survey from Australia which printed at -5 versus -3 previously.

The fiscal cliff looks set to return to the headlines today as lawmakers return to Washington for the first time since last week’s election. Today’s focus will be on the UK CPI and PPI data at 9.30am, with the euro’s near term direction likely to be influenced by German ZEW at 10am.

 


EUR/USD

Supports 1.2650-1.2605-1.2575| Resistance 1.2740-1.2790-1.2875


USD/JPY

Supports 79.05-78.80-78.45 | Resistance 79.60-79.80-80.00


GBP/USD

Supports 1.5850-1.5775-1.5700 | Resistance 1.5925-1.5960-1.6000

 

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (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.

For further details see our full non-independent research disclaimer and quarterly summary.