Euro ignores the latest EU banking crisis
City Index July 11, 2014 2:03 PM
<p>The euro continues to trade around 1.36 despite suggestions that European bonds could be overpriced following concerns that the Portuguese banking sector crisis has all […]</p>
The euro continues to trade around 1.36 despite suggestions that European bonds could be overpriced following concerns that the Portuguese banking sector crisis has all the hallmarks of the prior 2011 eurozone crisis. Concerns remain that Banco Espirito Santo, Portugal’s second-largest lender, has been under scrutiny in recent days following a delay in payments to investors. This has seen a fall in asset prices across Europe despite both the Portuguese government and Banco De Portugal stating that the situation is isolated and completely ring fenced.
Overnight there was more bad news from Australia as home loan approvals dropped by 0.5% in the month of May, with further divergences in data seen across the Tasman. New Zealand food prices rose 1.4% on the month versus 0.6% expected, backing up the RBNZ tightening policy and inflation concerns.
The data highlight today comes from Canada in the form of the jobs report which has disappointed for the last two months. Many are now predicting a US style weather related bounce back this month which, if seen, could push the loonie back below 1.0600. Expectations are for the Canadian economy to add 20k jobs with the unemployment rate to hold steady at 7%.
Supports 1.3560-1.3530-1.3505 | Resistance 1.3640-1.3680-1.3700
Supports 101.15-100.75-100.00 Resistance 101.85-102.30-102.85
Supports 1.7100-1.7065-1.7000 Resistance 1.7185-1.7200-1.7250
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