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.
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.