Risk trades positive following stronger US jobs data
City Index August 6, 2012 1:00 PM
<p> EUR/USD Range: 1.2350-1.2444 Support: 1.2300 Resistance: 1.2450 The risk rally seen on Friday following robust US jobs data continued in the early Asian […]</p>
The risk rally seen on Friday following robust US jobs data continued in the early Asian session, with the single currency taking out stops above 1.2400 but falling just shy of the 1.2450 level. The weekend press seemed to be supportive of Draghi’s ECB press conference last week, signalling that the ECB is ready to act as soon as Spain and Italy ask for assistance. All eyes will remain on peripheral spreads this week with little data to inspire the market.
Range: 1.5602 – 1.5668
Focus remains on Italy and Spain this week after a stronger US jobs report inspired a risk rally on Friday. The highlight for the Queen’s currency this week will be the release of industrial and manufacturing data tomorrow, with the BoE inflation report released on Wednesday. Sterling is trading at the hands on EUR/GBP at the moment, with resistance seen at 0.7950-0.7970 and then the all-important 0.8000.
USD/JPY traded higher on Friday following a stronger non-farm payroll reading but even the robust data couldn’t inspire a sustained rally as local exporters continue to cap any move towards 79.00. The BoJ meeting this week is likely to bring a tweak to its asset purchase programme to ensure it remains on track to meet existing targets of JPY 65 trillion (14% of GDP) at the end of 2012 and JPY 70 trillion (15% of GDP) by mid-2013.
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.