EUR/JPY makes fresh five-year high
City Index November 29, 2013 2:27 PM
<p>The FX markets kicked off after the US Thanksgiving holiday with a broadly stronger than expected CPI reading from Japan that came in at +0.9% […]</p>
The FX markets kicked off after the US Thanksgiving holiday with a broadly stronger than expected CPI reading from Japan that came in at +0.9% year-on-year. This, along with some month end rebalancing flow, took EUR/JPY to 139.73 – its highest level since October 2008.
AUD initially made fresh multi-month lows on a statement released by Australian treasurer Joe Hockey that the Australian government has rejected a proposal for ADM’s proposed AUD3.4 billion takeover of Graincorp sighting national interest.
Today’s focus will certainly be on the eurozone inflation report for November, which is expected to rise 0.1% to 0.8% year on year. Last month’s dismal reading has prompted the ECB to surprise the markets with a rate cut which has been followed with discussions about the possibility of a negative rate scenario within the EU as the ECB continues with the mantra of ‘will do whatever it takes’ taken from Mario Draghi on June last year.
I expect month end rebalancing and positioning adjustments to be the main driver in the FX market space this afternoon, especially as liquidity will be at a premium with most of the US market taking advantage of a long weekend following the Thanksgiving celebration.
Supports 1.3580-1.3500-1.3425 | Resistance 1.3630-1.3685-1.3710
Supports 101.60-100.15-100.80 | Resistance 102.80-103.00-103.75
Supports 1.6260-1.6220-1.6140 | Resistance 1.6380-1.6450-1.6500
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.