Weaker Australian GDP and nervous signs from Greece add to risk woes
City Index March 7, 2012 1:00 PM
<p>EUR/USD Range: 1.3105-1.3152 Support: 1.3070 Resistance: 1.3180 The market remains nervous on signs that Greece is struggling to muster the support needed for its debt […]</p>
The market remains nervous on signs that Greece is struggling to muster the support needed for its debt swap deal with private creditors with the Thursday 8pm GMT deadline drawing closer. Today we see the release of the US ADP report that will give investors a chance to gauge the US non-farm payrolls release on Friday with ADP expectations today seen at +170k. The Asia market seems to have been in holding pattern overnight with rumoured barrier protection support seen at 1.3100.
Range: 1.5713 – 1.5740
The pound continues to be at the hands of general US dollar strength and risk sentiment as we head towards the business end of the week as we await the BoE meeting tomorrow but more importantly the Greek PSI deal and the US unemployment data on Friday. The pound has stabilised towards 1.5700 overnight with support levels from mid February seen below 1.5650.
The AUD traded to a six-week low overnight after Australian growth data fell short of expectations for Q4 GDP with a reading of 0.4% versus consensus of 0.8%. The AUD did rally 50 points in short covering after the 1.0500 level held firm despite the weak release but with the focus now on the Australian jobs data release tonight and a consensus for a rise of 5k in employment in February the market will test sub 1.0500 on any disappointment.
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.