Greek exit causing panic
City Index January 6, 2015 2:20 PM
<p>The euro took centre stage following a dramatic open yesterday after dropping as low as 1.1880. This all is coming from the ‘Grexit’ as once again […]</p>
The euro took centre stage following a dramatic open yesterday after dropping as low as 1.1880. This all is coming from the ‘Grexit’ as once again the worries of the Eurozone breakup are the main focus. The ECB will most likely be discussing the Greek exit at the non-rate setting meeting this Wednesday.
The SNB’s Jordan is also showing his concerns as Greece staying in the euro will help the cap of the EUR/CHF. He said yesterday that the main scenario is for Greece to remain in the euro.
Today’s data in the Eurozone is the main PMI’s for France, Germany and the Eurozone – all expected to be the same as the last.
Currently the EUR/USD is trading 1.1950 and EUR/CHF is 1.2015
Overnight the Aussie and Kiwi dollars made some ground against the US dollar after China HSBC PMI services were better than expected and the announcement of a $1 trillion boost to projects in 2015, to help growth.
The AUD got an extra boost as the trade deficit was better than expected. Currently AUD/USD is trading 0.8130 and NZD/USD is trading 0.7730.
The Yen has been in safe haven mode for the last two days now as it continues to gain against the USD, this is all down to the Eurozone Greek exit issues, coupled with mixed with the oil and equities sell off. Currently trading 119.20.
The pound followed the weak euro yesterday, falling as low as 1.5200. This was helped along by the weak construction output: the lowest since July 2013.
Today’s data is the services PMI, which is expected slightly higher than last time at 58.9 from 58.6 (currently trading 1.5230).
Data from the US today is the ISM Non-manufacturing PMI expected to dip to 58.2 from 59.3.
Supports 1.1890 1.1845 1.1800 | Resistance 1.1980 1.2020 1.2070
Supports 118.90 118.40 117.50 | Resistance 1.2030 121.15 121.70
Supports 1.5200 1.5140 1.5080 | Resistance 1.5320 1.5375 1.5435
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