Risk trade on as UK economy shows signs of improvement
City Index September 10, 2013 2:23 PM
<p>Risk trade has a bid tone so far this week as suddenly the world seems a better place. We hear from UK Chancellor Osborne that […]</p>
Risk trade has a bid tone so far this week as suddenly the world seems a better place. We hear from UK Chancellor Osborne that the UK economy has turned the corner, while a report in today’s FT indicates that President Obama would put planned air strikes on Syria on hold if the Assad regime follows the Russian proposal to hand over control of all its chemical weapons. The weaker US jobs report has also dampened taper expectations from the Fed this month as most analysts are now scaling back the size of the taper as I mentioned yesterday.
Overnight news has seen Chinese data continue to stabilise as industrial production came in at 10.4 year-on-year versus consensus expectation of 9.9% and the highest reading in 17 months as the domestic economy showed market expectations with retail sales coming in as expected at 12.8%. The stabilisation in Chinese data is giving the Australian economy a feel good factor as the NAB business confidence survey showed a strong rebound this month from -3 last month to +6.
JPY is opening weaker this morning as we flirt back on the 100 handle following comments from Japanese economic minister Amari that an economic package will be drawn up by month end as the market takes this as a sign that the much talked about sales tax implementation is upon us.
The data calendar is rather dull today but I will be looking towards Italy to dampen the risk positive environment as we await the Senate vote on whether Silvio Berlusconi can remain in Parliament following his recent tax fraud conviction. The current governing coalition is likely to collapse if he is ousted.
Supports 1.3220-1.3180-1.3105 | Resistance 1.3320-1.3350-1.3380
Supports 99.40-99.15-98.50 | Resistance 100.25-100.80-101.65
Supports 1.5675-1.5640-1.5600 | Resistance 1.5725-1.5750-1.5825
StoneX Financial Ltd (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.