Risk recovers on feel good Friday with hopes Spain are about to ask for help

<p>The risk currencies slowly recovered from the past 48-hour sell-off with all Asian equity markets just in the black with the Shanghai composite up 0.5%. […]</p>

The risk currencies slowly recovered from the past 48-hour sell-off with all Asian equity markets just in the black with the Shanghai composite up 0.5%. The catalyst behind the positive sentiment seems to be an article in the FT suggesting the EU are in talks over a Spanish rescue plan with details to be unveiled next Thursday which coincidently is the same day the banking stress tests are set to be released. The packages are rumoured to focus on structural reforms rather than tax hikes and spending cuts, and will pave the way for the EU to provide funding.

There is a lack of data today with only UK public finance data scheduled for release at 9.30am so I believe we will be at the hands of the liquidity gods and headline trading.

 


EUR/USD

Supports 1.3020-1.2980-1.2830 | Resistance 1.3020-1.3080-1.3170


USD/JPY

Supports 78.10-77.80-77.10 | Resistance 78.80-79.20-80.00


GBP/USD

Supports 1.6180-1.6100-1.6050 | Resistance 1.6280-1.6305-1.6380

 

Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.