World Bank adds to risk off
The World Bank has added further pressure to the risk-off trend with European bourses initially trading over 1% lower. The World Bank is now expecting […]
The World Bank has added further pressure to the risk-off trend with European bourses initially trading over 1% lower. The World Bank is now expecting […]
The World Bank has added further pressure to the risk-off trend with European bourses initially trading over 1% lower.
The World Bank is now expecting global growth to expand 3% this year and 3.3% for 2016, which shows downward revisions from 3.4% and 3.5% respectively.
The only upgrade was to the US growth forecast that was taken higher to 3.2% this year but the bank outlined the danger of reliance on the US as the only source of global growth.
The AUD initially broke the 0.8100 level as base metals remained under pressure following the recent trend in commodities markets, which saw Brent oil trade at 46.04 and WTI to 45.32 and just above yesterday’s lows as copper quickly traded limit down in Shanghai to a fresh five-and-a-half-year low. The lifestyle will again be the focus tonight as Australia releases its latest employment report.
The European court of Justice has initially commented on the ruling of the legality of the OMT this morning ahead of the final ruling due in the summer. The initial comments have led European bourses to stabilise as they comment that the OMT is in line with the ECB mandate.
However, I note a vague comment with regards to the implementation of the OMT that ‘certain conditions are met’, which I take to mean that the ECB will only buy bonds in ‘problem’ countries on the compliance of an agreed reform programme by that country.
US retail sales will be the focus this afternoon from across the pond, though the driver of the FX markets will be commodities and equities markets.
EUR/USD
Supports 1.1790 1.1745 1.1700 | Resistance 1.1875 1.1915 1.1960
USD/JPY
Supports 117.85 117.35 116.60 | Resistance 119.10 119.80 120.30
GBP/USD
Supports 1.5115 1.5060 1.5030 | Resistance 1.5200 1.5240 1.5295