The trend is your friend
City Index December 5, 2012 2:20 PM
<p>The risk trade continues to trade constructively led by higher equity markets despite a weaker than expected Chinese PMI services reading overnight. The single currency […]</p>
The risk trade continues to trade constructively led by higher equity markets despite a weaker than expected Chinese PMI services reading overnight. The single currency is leading the risk trade charge in FX space with speculation that large flows are coming to market to cover shorts before year end with Asian Central Banks also looking to re-cycle the USDs they have bought via intervention to keep their own currencies in check.
The JPY was on the back foot again after a 24-hour reprieve following comments from the BOJs Nishimura that the central bank will ‘continue to pursue powerful easing’.
Today’s data releases include service PMI readings from Europe along with the ADP report from the US which I’m sure will be scrutinised for the NFP’s on Friday but for me today’s highlight will be Chancellor Osborne’s Autumn statement which I fully expect to be as gloomy as the recent weather in the UK with media speculation that Georgie boy will break his own debt rule and change the fiscal framework to hopefully fuel growth thus getting the UK economy back on track.
Supports 1.3085-1.3050-1.3010 | Resistance 1.3150-1.3175-1.3280
Supports 81.75-81.40-80.80 | Resistance 82.35-82.85-83.20
Supports 1.6085-1.6025-1.5990 | Resistance 1.6130-1.6180-1.6250