Super Mario passes the baton over to Big Ben

<p>The leaked ECB action came to fruition and the market responded broadly as expected, with risk maintaining solid gains and confidence boosted by the fact […]</p>

The leaked ECB action came to fruition and the market responded broadly as expected, with risk maintaining solid gains and confidence boosted by the fact that the ECB seems ready to act aggressively to curtail convertibility risks. The feel-good factor has rolled into equities as the S&P closed up over 2% yesterday as the knock on effect left the SHCOMP up 3.8%, recording its strongest one day performance in six months and adding a risk on feel to currencies.

The market will now be looking to Spain to see if they will go cup in hand for a bailout and I’m expecting a lot more noise from the German camp following yesterday’s announcement as we head into next week’s German constitutional court ruling on the ESM. The usual trio has already been quoted, as Weidmann voiced further concerns over the buying plan, Schäeuble warned that monetary policy cannot solve fiscal woes and Amussen saying central bank action cannot replace government action.

Today the focus will be on non-farm payrolls, with the outcome likely to determine what additional steps the Fed takes at next week’s FOMC meeting. The market expects an increase of 130,000 and no change in the unemployment rate at 8.3%.

EUR/USD
Support - 1.2625-1.2550-1.2480 | Resistance - 1.2700-1.2765-1.2840


USD/JPY
Support - 78.30-78.10-77.90 | Resistance - 79.10-79.65-79.80


GBP/USD
Support – 1.5920-1.5880-1.5830  | Resistance - 1.6000-1.6025-1.6085

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