G20 meetings take centrestage over weekend

<p>Yesterday we saw some mixed data out of the US, with strong figures in unemployment claims down to 334k as compared to the expected 344k. […]</p>

Yesterday we saw some mixed data out of the US, with strong figures in unemployment claims down to 334k as compared to the expected 344k. This was keeping in line with the Fed’s expectations of improving jobs data. Also to come out was the Philly Fed Index which came in at 19.8, against expectations of 8.5 so some more strong US data. Then came Bernanke and his testimony, with more comments on economic data. He also said the economy still faces headwinds and there is no timeline for winding down the stimulus programme – a more dovish view from the previous day. To finish it all off, Moody’s has upgraded the US AAA rating to stable from negative.

Overnight we saw JPY rise against its peers in relation to the upcoming election, where Japan’s ruling party are still on course for victory this Sunday. The euro has had a rally back above 1.31 as Portugal’s government defeats the non-confidence vote.

Today we don’t have much in the way of data. German PPI rises to 0% from an expected -0.2%. The euro has carried on the move from overnight. UK public sector net borrowing is expected to come in at 9.4, which could help the GBP to carry on the strength it has had for the last few days. Canada Core CPI is expected to be -0.2%. The main events over today and tomorrow will be the G20 meetings in Moscow, with ministers comments throughout the day to reporters. This is very likely to affect the open on Sunday evening, also not to forget in Japan the Upper House elections take place all day Sunday.



Supports 1.3075/80 1.3020 1.2990/95 | Resistance 1.3150 1.3180 1.3210


Supports 99.80 99.40 98.85 | Resistance 100.60 101.00 101.55


Supports 1.5200 1.5065 1.5050 | Resistance 1.5265/70 1.5280/85 1.5345/50

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

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.

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