Slightly stronger Chinese data fails to break ranges with eyes on ADP today for NFP clues
City Index May 2, 2012 1:00 PM
<p>EUR/USD Range: 1.3210-1.3242 Support: 1.3100 Resistance: 1.3350 The single currency trades towards the week’s lows of 1.3200 despite a narrow range of 1.3202-1.3285 thus far […]</p>
The single currency trades towards the week’s lows of 1.3200 despite a narrow range of 1.3202-1.3285 thus far this week. The USD firmed across the board yesterday afternoon following the release of a robust US ISM report catching a liquidity reduced intraday market short USDs. Today the market will focus on the eurozone PMI which is expected to show a reading of 46 and the US ADP report (consensus 170k) for clues on the all important US jobs report due for release on Friday.
Range: 1.6216 – 1.6239
Sterling continues to frustrate the bears despite a weak manufacturing PMI report yesterday as the market continues to trade the pound from a policy point of view. Despite weaker data this week and confirmation of a technical recession in the UK following the GDP data last week, investors still like the pound with 1.6180 support holding yesterday. The view to me seems with no additional QE on the table from the MPC then sterling remains a safe haven asset.
The HSBC China PMI release failed to muster a move in the lifestyle currency following the aggressive interest cut by the RBA on Tuesday. The PMI reading came in slightly stronger at 49.3 which was marginally higher than the March number of 48.3 but remained below the threshold of 50. I’m sitting on the sidelines on this pair for the moment Following the RBA cut and waiting for a break of the 1.0250-1.0450 range for direction.
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