Greek reshuffle lifts the Euro
City Index April 28, 2015 5:01 PM
<p>The euro continues to flirt with the 1.09 handle against the greenback as we head towards wild Wednesday where the latest growth estimate will be […]</p>
The euro continues to flirt with the 1.09 handle against the greenback as we head towards wild Wednesday where the latest growth estimate will be released from the US along with details from the Federal Reserve meeting. The catalyst behind the latest euro fortunes comes from Athens where the ruling Syriza government have announced a new bailout negotiating team which has seen Finance Minister Varoufakis taking a less active role in the negotiations. This is seemingly due to his failure to forge an agreement with Greece’s creditors. The encouraging signs come as the new team led by the shadow finance minister have drafted a bill using the EU’s proposed structural reforms.
The UK GDP data came in at a meagre 0.3% this morning versus the 0.5% expected and the weakest reading since Q4 2012 which resulted in GBP trading to 1.5175 before the recent trend of a moderation in pessimism with regards to the election returned taking GBP to fresh multi month high just shy of 1.53.
The market will start to test the theory today that the US data demise was concentrated in Q1 as we look for a consensus estimate of 102.3 for consumer confidence in April.
Support 1.0785-1.0660-1.0505 | Resistance 1.0940-1.-1.0988-1.1050
Support 118.80-118.30-117.50 | Resistance 119.40-120.00-120.85
Support 1.5170-1.5100-1.5070 | Resistance 1.5300-1.5400-1.5500
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