Forex Market
European FX Daily
China PMI weaker than expected in September, but still up from August – Another disappointing Tankan – Focus on European and US PMI today
Technical Analysis
Hefty u-turns noted Friday with several key day reversals appearing in the charts, suggesting dollar strength to be a theme for the upcoming week.
FX Market Technical Research
EUR/USD: Testing 200-Day Moving Average. The pair has so far failed to record a close below the 200-DMA, but bears remain focused on this level, currently at $1.2824.
GBP/USD Analysis
Closed in NY Friday $1.6167 after getting pressed down from $1.6217 to $1.6114 on end of month fix flows. Rate had eased off to $1.6147 into early Asian trade, with early demand lifting rate to $1.6161 before turning lower on slight risk aversion caused by a negative opening in Asian equities.
EUR/USD Analysis
Closed in NY Friday at $1.2860 after rate had been pressed down from $1.2940 to $1.2838 on end month fix flows. Slow start into Asia with China, HK, Korea and Australia closed with early trade fairly subdued as it held between $1.2845/50.
Asian Currencies Technicals
AUD/USD: 200-DMA remains key support. The pair managed to briefly pop above the Sept 25 highs before heading back towards the key support noted at the 200-DMA.
FX Market Analysis
EUR: Opened early Europe at $1.2933, Euro-dollar closed in NY at $1.2915 after rate had bounced from initial Spain Budget react lows of $1.2829 to $1.2928 as market perceived that the austerity measures announced would leave open the door to Spain asking for bond buy aid from the ECB without further austerity requirements.
European FX Daily
– Risk assets rally post Spain budget announcement – August IP weaker than expected in Japan, Korea, Thailand – Swiss KoF likely fall – We recommend EURUSD puts and short SGD against basket position
FX Daily Strategist: Europe
– Spanish budget well received – risk rally rolls on The long-awaited Spanish budget has been well received by markets with Spanish sovereign spreads relative to Germany narrowing and global equties finishing higher.
Technical Analysis
EURUSD & GBPUSD both misfired below support and are seemingly headed higher from here. Key refs on those above are located at 1.3048 & 1.6267…
FX Market Technical Research
EUR/USD: Bouncing Towards Hourly Resistance. The bounce back towards the $1.2972 hourly resistance continues after the pair failed to record a close below the 200-DMA earlier in the week and with the previously overbought daily tech studies no longer seen weighing.
GBP/USD Analysis
Closed in NY at $1.6236 after bouncing back from a post Spain Budget announcement low of $1.6173 to $1.6244, the move tracking euro-dollar’s reaction.