UK retail sales versus Vodafone payment
City Index February 21, 2014 2:49 PM
<p>I’m a little surprised to see the market discounting the negative Chinese HSBC PMI data yesterday that pretty much indicated that all components for small […]</p>
I’m a little surprised to see the market discounting the negative Chinese HSBC PMI data yesterday that pretty much indicated that all components for small businesses in China are now in contraction territory. This has seen further declines in the CNH yet, despite this worrying outlook, global risk trade is still looking constructive as the Nikkei stages a 3% rally with the S&P still eyeing the 1850 level.
In other news the G20 starts in Sydney with discussions likely to focus on structural reforms in emerging markets although I hold little hope that a policy will be implemented this weekend to ease the recent volatility within the region. President Obama is due to meet the Dalai Lama today which could possibly test the resolve of the US-China relationship.
All about the proud pound today as we wait to see if again, lower prices (CPI) have equated into a second month of stronger retail sales. The market is also speculating that the first Vodafone/Verizon FX transaction needs to be completed today. I’m cautious that the market is long sterling heading into these events, making the downside vulnerable to any disappointment. The US session brings us second tier data in the form of existing home sales.
Supports 1.3680-1.3615-1.3580 | Resistance 1.3780-1.3825-1.3895
Supports 102.00-101.75-101.45 | Resistance 102.80-103.00-103.50
Supports 1.6625-1.6600-1.6550 | Resistance 1.6740-1.6820-1.6880
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