Spanish yields close the danger 7% level with today’s highlight the ADP
City Index May 31, 2012 1:00 PM
<p>EUR/USD Range: 1.2358-1.2398 Support: 1.2320 Resistance: 1.2550 Another eventful day for the single currency. – ECB President Draghi releases his annual report of the European […]</p>
Another eventful day for the single currency.
- ECB President Draghi releases his annual report of the European Systematic Risk Board, which is part of the EFSF and responsible for the macro-prudential oversight of the EU’s financial system.
- EU holds its annual Economic Forum.
- Ireland holding referendum on fiscal pact.
Technically the Euro RSI’s point to a very oversold market but with Spanish yields approaching the danger 7% bailout level you can’t argue the with the fundamentals.
Range: 1.5463 – 1.5486
Sterling broke supports yesterday as the risk trade continues to trade under pressure with the main beneficiary in the last 24 hours being the JPY as investors unwind high yielding carry trades. Overnight the UK GFK consumer confidence number for May came in at -29, slightly better than the forecast of -32. No UK data today so expect GBP fortunes to be dominated by risk.
The JPY strengthened across the board with month end rebalancing in USD/JPY , AUD/JPY, EUR/JPY , GBP/JPY all adding to a bid JPY with market speculation that exporters could come to the market as they have missed the opportunity to sell above 80.00. This afternoon the ADP report will be released with the market looking for an early gauge of tomorrows all important US jobs report where at the moment consensus is for a rise in NFP’s to 150k. The Chicago PMI is also released today with the index consensus being for a rise to 57.3.