Will super Mario act as European woes spread into Germany? Spanish auction first up
City Index May 3, 2012 1:00 PM
<p>EUR/USD Range: 1.3136-1.3161 Support: 1.3100 Resistance: 1.3350 The single currency traded close to the 1.3100 support level after dismal PMI readings across Europe with Germany […]</p>
The single currency traded close to the 1.3100 support level after dismal PMI readings across Europe with Germany now showing a sign of weakness as unemployment rises. Firstly today Spain will auction three and five year bonds at 9.30 followed by the all important ECB meeting. No change is expected on ECB policy today at 12.45 so yet again it will be super Mario’s press conference at 1.30pm GMT that the market will be focusing on for signs the central bank are finally ready to act.
Range: 1.6175 – 1.6205
Sterling still trades close to 1.6200 after stronger data yesterday with EUR/GBP now trading towards lows last seen since July 2010. The all important services PMI is released for the UK this morning with expectations of a slight fall to 54.5 from 55.3 which would still be consistent for significant growth for this sector. The SNB quarterly balance sheet has revealed that the SNB has doubled its £ holdings in currency reserves during Q1.
The AUD traded to a low of 1.0285 overnight on the back of a weak China non manufacturing PMI reading for April which came in at 56.1, down from 58 in March which shows signs that growth in China continues to decelerate. The AUD was also dragged lower by the NZD after New Zealand unemployment data showed a rise in the unemployment rate to 6.7%, some 0.4% higher than had been expected. On the day I’ll be looking to buy dips to 1.0250 with a 30 point stop looking for no more than 1.0310-15.