Syrian tensions weigh on risk
City Index September 24, 2014 2:19 PM
<p>The S&P traded lower to 1976- just shy of the 38.2% retracement of the August to October rally- following the US led air strikes on […]</p>
The S&P traded lower to 1976- just shy of the 38.2% retracement of the August to October rally- following the US led air strikes on Syria. This led to concerns regarding the global growth picture with a break of the 1975 level seen as targeting 1935. The NZD outperformed in the Asian session after the New Zealand trade deficit came in much lower than the NZD 1.1 billion that was expected at NZ 472 million. The improvement was driven by higher exports and a decline in imports.
USD/JPY traded lower led by the declining Nikkei following comments from Japanese PM Shinzo Abe. He said that he wants to see the impact of the weaker JPY on regional economies before commenting on further stimulus measures. It seems that the Japanese authorities are now expressing reservations on the rapid decline of the JPY as these latest remarks from the PM echo those of Finance Minister Aso and the Economics minister Amari.
The German IFO business survey is the highlight this morning. The markets will look for a weaker number of 105.70 following the sanctions placed on Russia as the US session will outline the latest new home sales data.
Supports 1.2820-1.2785-1.2750 | Resistance 1.2900-1.2930-1.2985
Supports 108.40-108.05-107.70 | Resistance 109.00-109.45-110.00
Supports 1.6350-1.6285-1.6160 | Resistance 1.6420-1.6460-1.6525
GAIN Capital UK Limited (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.