Risk disappoints despite stronger Chinese data

<p>The US jobs report initially inspired risk on Friday as the unemployment rate dropped to 7.8% but as the week came to an end the […]</p>

The US jobs report initially inspired risk on Friday as the unemployment rate dropped to 7.8% but as the week came to an end the lack of new positioning kept FX markets within their recent ranges as we failed to break above the 1.3080 resistance level in the single currency. With Japan, US and Canada on holiday today volumes have been low with the risk trade looking heavy in early Europe despite a stronger reading from the China HSBC services  PMI data that came in at 54.3 from 52 in August.

The World Bank cut its growth forecast for Asian and China by 1% saying the region would drop from 8.2% in 2011 to 7.2% before recovering in 2013 to 7.6%. The market has also picked up on media reports that the upcoming earnings season in the US could be one of the roughest in a long time.

Not much is expected from the eurozone finance ministers meeting today with much of the focus no doubt surrounding the uncertainty with regards to Spain, Greece and Cyprus.



Supports 1.2960-1.2930-1.2850 | Resistance 1.3080-1.3100-1.3180


Supports 78.30-77.80-77.30 | Resistance 78.85-79.35-80.00


Supports 1.6065-1.6000-1.5920 | Resistance 1.6220-1.6290-1.6350


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