The yen has reversed the whole move, with US GDP print the main highlight for today
City Index January 27, 2012 2:00 PM
<p>EUR/USD Range: 1.3077-1.3120 Support: 1.2920 Resistance: 1.3200-10 The euro seems to be in a consolidation mode following the single currency’s boost after the dovish Fed […]</p>
The euro seems to be in a consolidation mode following the single currency’s boost after the dovish Fed announcement. The market seems to be torn between the ultra loose policy the Fed has developed and the ongoing Greek risk to Europe, especially with the upcoming EU summit and Greek debt talks likely to resume today. Although I doubt an agreement will be in place by the of business today. For me the market is still short and as they say the trend is your friend so I’ll be looking to buy dips as long as we hold above 1.2985 (pre fed level).
The yen has reversed practically the entire move following the dismal Japanese data released on Tuesday. The US yield curve has dominated the pair since the ultra dovish FOMC and with month end fixing from Japanese exporters triggering stops below the 200-day moving average at 77.30 overnight, the market now seems to be a lot cleaner with regards to positioning. Today we see the release of Q4 US GDP which gives us another chance to gauge the US economy with the street looking for a reading of 3%.
No UK data again today so one can expect the pound’s fortunes to be dominated by other markets. For me the cross sterling markets are dominating proceedings. Technically EUR/GBP failed to close above 0.8385 again, but I think this is just a matter of time as we approach the usual month end demand. The yen’s strength dominated the Asian session, with sterling capped as GBP/JPY stops were executed under 121.00.
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.