UK GDP expected to fall
City Index January 27, 2015 2:52 PM
<p>The Euro was the main mover from the open yesterday, after a victory for the Syriza and an anti-bailout government was formed in Greece. The […]</p>
The Euro was the main mover from the open yesterday, after a victory for the Syriza and an anti-bailout government was formed in Greece. The initial investor reaction was to sell the Euro as the worry of a Greek exit from the Eurozone grows even closer, which pushed the Euro to a 11-year low. This wasn’t to last, as it will take time for the details to emerge from Greece about its bailout and austerity measures. The euro managed an impressive 160 point bounce and continues to hold above 1.1200.
The Swiss Franc had the biggest moves yesterday as it weakened against all the pairs, following comments from the Swiss National Bank that it’s ready to intervene in the FX market. This is one to be mindful of, especially after the vicious reaction to the removal of the EUR/CHF peg at 1.2100. Currently EUR/CHF is trading above 1.0100.
USD/JPY continues its ups and downs while it struggles to find a direction. After a 70-point rally yesterday, it has given the majority of this back overnight as comments were released by a Japan official, stating that there was no set time to reach the inflation goal of 2%. At the time of writing, USD/JPY is just above 118.00.
Sterling enjoyed a good rally yesterday of around 90 points, after a generally weak USD and comments from the the Bank of England’s Forbes saying rate rises are needed earlier than people think. The pair is currently trading just below 1.5100, with the UK GDP to be released this morning – with an expected drop to 0.6% from 0.7%.
In the US data to be released of importance is the Core durable goods, expected to climb from -0.7% to 0.6%. Consumer confidence expected to rise to 95.3 from 92.6, and new home sales expected higher at 452k from 438k.
Overnight data to watch for is from Australia when they release the CPI q/q with an expected fall to 0.3% from 0.5%. IT’s currently trading above 0.7900.
Supports 1.1160-1.1071-1.1000 | Resistance 1.1320-1.1385-1.1475
Supports 117.70-116.90-116.50 | Resistance 119.00-119.40-120.20
Supports 1.5015-1.4950-1.4900 | Resistance 1.5130-1.5170-1.5240
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