UK MPC minutes and unemployment data versus US Beige book this evening
City Index July 18, 2012 1:00 PM
<p> EUR/USD Range: 1.2270-1.2305 Support: 1.2150 Resistance: 1.2350 We have a quite day for European data after the German ZEW index came in yesterday at […]</p>
We have a quite day for European data after the German ZEW index came in yesterday at consensus with the components showing some green shoots. Fed Chairman Bernanke added nothing new yesterday with QE3 just an option still for the Central Bank. The Euro traded both ends of the range down to 1.2188 from 1.2315. Not an easy market and another failure at both ends of the range so I’m going keep the powder dry today and trade a break of 1.2150-1.2350.
Range: 1.5638 – 1.5667
Sterling continues to trade in the range ahead of the MPC minutes and unemployment data this morning with EUR/GBP continuing to trade around the 0.7850 level. The minutes today will reveal the voting pattern around last month’s extension of QE by £50 billion with most expecting a unanimous vote on both the bank rate and asset purchases. The UK unemployment data is released at 9.30am and is expected to show the claimant count at 10k and the unemployment rate unchanged at 8.2%.
The lifestyle looked set to close yet again below the 200-day moving average at 1.0275 after Bernanke disappointed the QE junkies with no immediate QE3 plans, but just as the technical traders were getting short the resilience in the AUD kicked back in and we trade back on the 1.0300 handle and testing my resistance area 1.0330-50. I just can’t argue with the price action and with the RBA seemingly on hold for the moment it seems it’s just a matter of time before 1.0350 is broken and we target 1.0500.
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