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