Risk on ahead of eurozone flash CPI and US home sales data
City Index June 30, 2014 2:07 PM
<p>The week has started off with a slight risk off trade, with the euro, pound, New Zealand dollar and Australian dollar all falling in the […]</p>
The week has started off with a slight risk off trade, with the euro, pound, New Zealand dollar and Australian dollar all falling in the Asian session and continuing this morning. The Kiwi was pushed further down after a drop in ANZ business confidence figures. German retail sales are already out this morning and fell for the third month in a row, keeping pressure on the euro.
The yen continues with its gains from positive data last week, but also with the growing tensions in Ukraine, Iraq and Korea now, helping it gain from being a safe haven currency.
The big data released today is the eurozone CPI flash estimate, expected to show a small gain from the last reading at 0.6%. This seems to be the main mover for the euro, with deflation and QE on everyone’s minds. This should help to determine whether the ECB’s measures are taking effect or if QE is getting closer.
In the US pending home sales are due up, with an improved 1.4% to be expected from the last reading of 0.4%.
Supports 1.3620 1.3580 1.3500 | Resistance 1.3655 1.3680 1.3700
Supports 101.20 100.75 100.00 | Resistance 101.75 102.00 102.50
Supports 1.7000, 1.6950 1.6930 | Resistance 1.7050 1.7075 1.7100