G20 meetings take centrestage over weekend
City Index July 19, 2013 3:44 PM
<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
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Supports 1.5200 1.5065 1.5050 | Resistance 1.5265/70 1.5280/85 1.5345/50
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