Its Central Band week ahead of NFP’S as Chinese data beats consensus

<p>  EUR/USD Range: 1.2610-1.2677 Support: 1.2400 Resistance: 1.2750 The market looks to be in a period of consolidation after the market digests the action from […]</p>

EUR USD

EUR/USD
Range: 1.2610-1.2677
Support: 1.2400
Resistance: 1.2750

The market looks to be in a period of consolidation after the market digests the action from last week’s EU summit ahead of a busy week of data and central bank meetings with last week’s euphoria turning the euro into a buy dips scenario. Most analysts are predicting a move by the ECB this week to cut rates with 25 basis points already priced in by the market with some calling for a 50 basis point cut. Today we will receive the latest release of the EU PMI data and unemployment rate.

 

 

GBP USD

GBP/USD
Range: 1.5648 – 1.5712
Support: 1.5500
Resistance: 1.5800

Sterling tracks risk slightly lower at the beginning of a week but I’m expecting a range bound market ahead of the BoE meeting this week. The pound lagged the EU summit risk inspired rally at the end of last week as negative UK banking developments weighed on the pound. The BoE is expected to announce an extension of QE by £25 billion with some calling for a larger £50 billion to be added following the June meeting where four members voted for an extension.

 

 

USD JPY
USD/JPY
Range: 79.48-79.98
Support: 79.00
Resistance: 80.00

The JPY traded in a tight range despite a positive Tankan report which showed business sentiment, inventory perceptions, and capex forecasts and overseas demand all beating market expectations. After such a strong report and news of the DPJ break up following the departure of former president Ozawa The market has scaled back further BOJ easing with a hung parliament in Japan looking more likely. The release of The US ISM report will be scrutinised today ahead of the NFP data on Friday.

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.