Markets in tight range; US home sales data expected to improve
City Index June 24, 2014 2:19 PM
<p>The markets have been trading in very tight ranges this week thus far. Traders are waiting for the next big announcement, which is likely to […]</p>
The markets have been trading in very tight ranges this week thus far. Traders are waiting for the next big announcement, which is likely to be the Eurozone CPI, not out until Monday, June 30th.
For now we are running on comments and little data, with BoJ’s Kuroda pre-emptively playing down an inflation speed bump. This has kept USD/JPY stuck around the 102.00 level as predominantly USD has some weakness due to Yellen’s comments and the near-zero rates for the longer term.
The euro is staying still for the moment as comments last night from ECB’s Nowotny stated that the ECB has an interest in weakening the rise in the euro’s strength.
Mario Draghi’s comments over the weekend suggested that QE is that much closer if they need to use it. He accepts it would help the short-term inflation issue they are currently facing.
Today the German IFO business climate is released, with an expected reading of 110.30 from the previous 110.4.
Cable is running out of steam but is still holding above 1.70 for now as the rate hike seems to be getting closer. This was helped along yesterday by comments from BoE’s Miles who said that he would likely vote for a rate rise before he leaves in May next year.
Today is the inflation hearing, which will more than likely add to speculation of the earlier than expected interest rate rise.
In the US we have the consumer confidence report, expected at 83.6, which is a slight improvement from the last time. We will also see new home sales data, expected to increase to 442k from 433k.
Supports 1.3580 1.3560 1.3535 | Resistance 1.3615 1.3640 1.3670
Supports 101.65 101.40 100.75 | Resistance 102.15 102.85 103.00
Supports 1.7000 1.6970 1.6930 | Resistance 1.7060 1.7100 1.7140
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.