European finance ministers meeting today after tepid US jobs data on Friday

<p>  EUR/USD Range: 1.2235-1.2308 Support: 1.2150 Resistance: 1.2450 The single currency still trades under pressure after breaking the 2012 of 1.2280 late on Friday with […]</p>

EUR USD

EUR/USD

Range: 1.2235-1.2308
Support: 1.2150
Resistance: 1.2450

The single currency still trades under pressure after breaking the 2012 of 1.2280 late on Friday with the technical picture showing an oversold market. The EU finance ministers meeting today will follow up on the decisions taken by the EU summit, in particular the establishment of the ECB as a single euro area bank supervisor. While the intention was also to determine the MoU for the Spanish bank recapitalisation, this may need to be done at a further Euro group meeting later in July. There isn’t much good news out there to support the single currency so I’ll be using any EU meeting positives to add to Euro shorts.

 

 

GBP USD

GBP/USD

Range: 1.5465 – 1.5495
Support: 1.5380
Resistance: 1.5630

The European finance ministers meeting in Brussels will be the highlight today along with BOE deputy governor Paul Tucker giving evidence to the TSC Libor fixing inquiry. Macro data is light this week in the UK with only industrial/manufacturing production and the trade balance scheduled to be released. Risk sentiment is weak following weaker Chinese inflation and a tepid US jobs report. Risk sentiment will continue to drive sterling this week.

 

 

AUD USD

AUD/USD

Range: 1.0177-1.0211
Support: 0.9970
Resistance: 1.0330

The lifestyle currency traded lower with general risk sentiment weaker following the release of the Chinese CPI data that was slightly below the consensus forecast of 2.3% at 2.25%. China’s Premier Wen Jiabao said the downward pressure on the economy is still “relatively large” and added that the government will intensify fine-tuning of policy in response to the downside risk to growth. The AUD trades lower this morning but with a yield advantage I’m still expecting EUR/AUD flows to dominate.

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.