Risk recovers on feel good Friday with hopes Spain are about to ask for help
City Index September 21, 2012 2:00 PM
<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.
Supports 1.3020-1.2980-1.2830 | Resistance 1.3020-1.3080-1.3170
Supports 78.10-77.80-77.10 | Resistance 78.80-79.20-80.00
Supports 1.6180-1.6100-1.6050 | Resistance 1.6280-1.6305-1.6380