The start of a new month and the PMI data is what will be in focus today. We started off with the China PMI which was weaker than expected, causing a risk off open for the Asian currencies. Yen is at a seven- year low as SUD keeps it moving higher.
The Aussie and Kiwi both drop on the back of weak China data, the AUD helped further down with very weak building approvals.
Today the Eurozone PMIs will be released with the same as last expected at 50.7 just above the expansion level but very close to it. With the EUR/USD currently trading below the 1.2500 handle this may keep pressure on the euro if does not hit the expected level.
The pound also comes out with its PMI today expected at 51.5 from 51.6 previous, a slight drop expected but still to stay above the 50 level. GBP/USD is currently trading below the 1.6000 handle, looking for some positives to gain back some ground over the ever strengthening USD.
Supports 1.2430 1.2385 1.2240 | Resistance 1.2500 1.2540 1.2585
Supports 112.40 112.20 111 | Resistance 113.00 113.35 114.00
Supports 112.40 112.20 111.60 | Resistance 1.6000 1.6040 1.6085
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.