USD gives back gains on escalating tensions over Russian-Ukraine crisis
City Index May 6, 2014 2:18 PM
<p>Another bank holiday in the UK proved to be a very quiet session following the drama of Friday’s non-farm payrolls. The data turned out to […]</p>
Another bank holiday in the UK proved to be a very quiet session following the drama of Friday’s non-farm payrolls. The data turned out to be a big surprise to the upside, which saw the USD gain as you would imagine, only to give back all the gains on Friday night as tensions between Russia and the world escalated.
There was some data release yesterday with a weakening Chinese PMI in the Asian session. This was followed by a strong reading from the US ISM PMI, keeping the markets relatively still in low liquidity.
So far there have been no real movers as of yet. Overnight the RBA announced that the rate will stay at 2.5%, which was expected, and some familiar comments that the AUD exchange rate remains high by historical standards. This didn’t affect the Aussie as it bats aside RBA concerns.
Today’s data for the EU is the final services PMI, expected at 53.1 from its last reading at 53.1. In the UK the services PMI is expected to grow only slightly to 57.9 from the last reading of 57.6. In the US we await trade balance data, expected to come in at -40.1b, better than the previous reading of -42.3b.
Supports 1.3860 1.3840 1.3785 | Resistance 1.3900 1.3925 1.3965
Supports 101.80 101.30 101.00 | Resistance 102.25 102.50 102.80
Supports 1.6840 1.6820 1. | Resistance 1.6915 1.6935 1.6965
GAIN Capital UK Limited (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.