Eurozone PMI data due today; will US employment claims data disappoint?

<p>Last night’s FOMC minutes gave USD a bid tone, with comments that tapering is due in the coming months, with improved data.  Fed’s Bullard also […]</p>

Last night’s FOMC minutes gave USD a bid tone, with comments that tapering is due in the coming months, with improved data.  Fed’s Bullard also added to this tone, with a comment that December tapering is definitely on the table.

In Asia Chinese PMI data was disappointing, adding pressure to risk currencies, particularly the Aussie which had the biggest fall overnight. The BoJ continuing with asset purchase and a rosy outlook for the economy has weakened JPY, pushing it just below the 101 mark.

The euro has taken a hit in early  trading, with French PMI disappointing. The number dropped from 49.1 to 47.8 – below the growth mark of 50.0.  German PMI came in slightly better than expected and above the 50 growth mark, giving the euro a bit of a lift back to pre-French PMI levels.

Today is all about the PMIs. The eurozone is still to come, with mixed French and German data so far.  In the US PMI and Philly Fed manufacturing and unemployment claims are due out, with comments last night that the FOMC reaction could be volatile depending on the outcomes, better than expected would see very positive for the USD and bring tapering closer to the December meeting.

 

EUR/USD

Supports 1.3410 1.3385 1.3360 | Resistance 1.3450 1.3490 1.3530

 



USD/JPY

Supports 100.20 99.85 99.50 | Resistance 101.00 101.55 102.00

 



GBP/USD

Supports 1.6050 1.5980 1.5850 | Resistance 1.6105 1.6145 1.6185

 

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.