Positioning dominates after euro rises on weak PMI data
City Index March 25, 2014 1:19 PM
<p>The FX markets have traded in consolidated ranges thus far this week as positioning dominates sentiment. Just after 6pm London on Monday we saw an […]</p>
The FX markets have traded in consolidated ranges thus far this week as positioning dominates sentiment. Just after 6pm London on Monday we saw an explosive 60-point move higher in the euro as the market triggered stops above 1.3810 following the intraday selling that had been built up subsequently to poor global PMI data.
The equity markets in Asia remained a struggle following the weak close in the US which hasn’t been helped by news that the G8 summit scheduled to be held in Sochi has been replaced by a G7 meeting in Brussels as geopolitical concerns from Ukraine continue.
The head of the Japanese pension fund (GPIF) Mr Mitani said that the role of the GPIF was not to support Japanese stocks but to pay pensioners that had invested in Japan. Not for the first time both antipodean central bankers have commented on exchange rates. New Zealand’s Finance Minister English still sees the exchange rate as too high while RBA Deputy Governor Lowe said that a lower AUD continues to play a stabilising role in the Australian economy.
Today’s data events come in the form of the IFO survey from Germany along with UK inflation data as the US session gives us the latest consumer confidence reading.
Supports 1.3775-1.3745-1.3705 | Resistance 1.3875-1.3920-1.3965
Supports 102.00-101.80-101.55 | Resistance 102.70-103.00-103.50
Supports 1.6440-1.6415-1.6380 | Resistance 1.6515-1.6545-1.6600
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