Quarter end flows to dominate FX markets but is the QE3 consolidation now complete?
City Index September 25, 2012 1:20 PM
<p>Asian equity markets are broadly weaker this morning following a disappointing German IFO report and the market becoming increasingly impatient as there seems no sign […]</p>
Asian equity markets are broadly weaker this morning following a disappointing German IFO report and the market becoming increasingly impatient as there seems no sign that Spain will ask for official aid before the Spanish state elections on October 21st despite calls from German coalition that Spain ‘ must spell out what the situation is ‘.
Merkel and Draghi are both scheduled to speak today at a conference hosted by the Federation of German industry as quarter end flows keep the single currency on the back foot with large flows seen in EUR/AUD and EUR/GBP with the latter being attributed to the EU single farm payments that are due this coming Friday.
US Consumer confidence data is released at 3pm this afternoon with the consensus looking for a reading of 63 versus 60.6 last time.
Supports 1.2880-1.2830-1.2750 | Resistance 1.2980-1.3050-1.3170
Supports 77.50-77.30-77.05 | Resistance 78.30-78.80-79.20
Supports 1.6180-1.6100-1.6050 | Resistance 1.6270-1.6310-1.6380