Ranges prevail in the world of FX
City Index November 2, 2012 1:00 AM
<p>Ranges prevail in the world of FX with the failure of 1.3020 Wednesday seeing a subsequent test of 1.2850 today which held. The proud pound […]</p>
Ranges prevail in the world of FX with the failure of 1.3020 Wednesday seeing a subsequent test of 1.2850 today which held. The proud pound took the touted stops out above 1.6145-1.6150 yesterday then drifted off back to 1.6080 level.
As you can see bar GBP risk and volumes are low as the market starts the month how it finished last month sitting on the fence waiting for data or elections or any other excuse. The ADP data yesterday had a new methodology that is designed to make it better correlated to the official NFP, it came in at 158k roughly as expected but yet again the market didn’t move due to the fact we now have to wait to see how close it is to NFP today.
All in all we spend Asian and European trading tight ranges in most pairs as we await the risk event of the week the US jobs report with most expecting between 125k-135k from last month’s 114k rise and the unemployment rate to edge up 1/10 to 7.9%. Economic data looked to add some hope to global growth with Chinese PMI data beating expectations along with US consumer confidence at 72 and the ISM data at 51.7 with a drop in the prices paid component to 51.7 signalling inflation is under control.
Supports 1.2830-1.2805-1.2750 | Resistance 1.2950-1.3020-1.3100
Supports 80.10-79.65-79.25 | Resistance 80.40-80.65-80.85
Supports 1.6055-1.6010-1.5975 | Resistance 1.6135-1.6185-1.6225