Risk on ahead of Janet Yellen’s testimony today
City Index May 7, 2014 2:34 PM
<p>Risk on was the theme of the day yesterday. GBP led the way with a decent PMI reading, which sent the currency up to the […]</p>
Risk on was the theme of the day yesterday. GBP led the way with a decent PMI reading, which sent the currency up to the 1.7000 level. The euro was lifted by Spanish PMI data, which came in at a seven-year high. This was followed by a surprisingly higher figure for EZ retail sales.
So far this morning the eurozone has had some poor data in the form of Germany factory orders and French industrial production. This has kept it pretty near to where it closed last night.
The market mover today will be Fed Chair Janet Yellen, who is set to testify before the Joint Economic Committee of Congress in Washington. Most are expecting this to be slightly more dovish, but with a strong payroll data last Friday maybe a hint of optimism could be found.
Supports 1.3910 1.3885 1.3845 | Resistance 1.3965 1.4000 1.4030
Supports 101.30 101.05 100.75 | Resistance 101.80 102.20 102.55
Supports 1.6940 1.6915 1.6880 | Resistance 1.7000 1.7040 1.7120
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.