Market Overview by FXCC Sep 03 2012

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Market Overview by FXCC Sep 03 2012

 

ECB to add some colour on bond buying - Nomura

 

Expect the ECB to announce its preparedness to intervene in the bond market after countries have called for help at the EFSF/ESM and under strict conditionality, Nomura Chief European Economist Jacques Cailloux said in a research note, published late last week. However, Nomura believes that the ECB will provide very little colour on the modalities of the programme at this week's meeting. According to Mr. Cailloux, once the program is implemented, "analysis shows that the bond buying programme for Spain could last 5 months with the shorter maturities rallying further in the initial stage of the policy response. Much more difficult will be how to anchor the longer end which will be the job of the EFSF/ESM, a task we believe will be very hard."

 

London session ahead will have another round of PMI figures this time coming from several EU countries like Spain, Italy, France, Germany, the EU, and Greece, starting at 07:13 GMT, 07:43, 07:48, 07:53, and finally at 07:58 with the EU and Greece respectively. Not much in EUR macro data related apart from the PMIs, with the focus on the US closed today on holiday, and ECB's Draghi to testify on banking union before the European Parliament's Economic and Monetary Affairs Committee, in Brussels at 13:30 GMT.

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https://support.fxcc.com/email/technical/03092012/

 

UPCOMING EVENTS :

2012-09-03 07:15 GMT : Switzerland. Real Retail Sales (YoY) (Jul)

2012-09-03 07:53 GMT : Germany. Markit Manufacturing PMI (Aug)

2012-09-03 07:58 GMT : E.M.U. Markit Manufacturing PMI (Aug)

2012-09-03 08:28 GMT : United Kingdom. Markit Manufacturing PMI (Aug)

 

FOREX NEWS :

2012-09-03 04:33 GMT : GBP/USD consolidating above 1.5850

2012-09-03 04:12 GMT : EUR/USD flat, AUD/USD plummets

2012-09-03 03:52 GMT : AUD/USD forecast at parity before end of 2012 - UBS

2012-09-03 03:16 GMT : EUR/AUD at fresh 2-month highs

 

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EURUSD : 1.25825 / 1.25826

DAILY WEEKLY MONTHLY

 

 

1.2717 | 1.2676 | 1.2637

1.2557 | 1.2517 | 1.2480

 

SUMMARY : Up

TREND : Up trend

MA10 : Bearish

MA20 : Bullish

STOCHASTIC : Neutral

 

 

MARKET ANALYSIS - Intraday Analysis

 

Friday’s comments by ECB’s Benoit Coeure pushed EURUSD up to the new monthly highs and our suggested target at 1.2577 was achieved. Our next resistance level is placed above the fresh high at 1.2637 (R1), violation here would expose next target at 1.2676 (R2) and any further appreciation might face resistive measures located at 1.2717 (R3). On the other side, the pair’s fall might be supported by our next level at 1.2557 (S1). Further decline below it might test next targets at 1.2517 (S2) and 1.2480 (S3) in potential.

 

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GBPUSD : 1.58698 / 1.58710

DAILY WEEKLY MONTHLY

 

 

1.5948 | 1.5922 | 1.5896

1.5848 | 1.5824 | 1.5799

 

SUMMARY : Up

TREND : Up trend

MA10 : Bullish

MA20 : Bullish

STOCHASTIC Neutral

 

 

MARKET ANALYSIS - Intraday Analysis

 

Friday’s USD weakening during the European session let to profit taking at 1.5589, our last suggested target. Upside pressure might force the market to retest our next resistance level at 1.5896 (R1). Consolidation above it might provide sufficient space for the price increase towards to our next targets at 1.5922 (R2) and 1.5948 (R3). On the flip side, depreciation below the support level at 1.5848 (S1) would enable our targets at 1.5824 (S2) and 1.5799 (S3) in potential.

 

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USDJPY : 78.319 / 78.323

DAILY WEEKLY MONTHLY

 

 

78.80 | 78.63 | 78.45

78.10 | 77.92 | 77.74

 

SUMMARY : Down

TREND : Sideway

MA10 : Bearish

MA20 : Bearish

STOCHASTIC : Neutral

 

 

MARKET ANALYSIS - Intraday Analysis

 

Current installation might suggest us about the market sentiment change. Friday decline below the key support level at 78.28 open the road towards to the new targets. Our next target level at 78.10 (S1) mark is not far away from current market price. Brake here would suggest lower supports at 77.92 (S2) and 77.74 (S3) as new targets. A move above the resistance level at 78.45 (R1) might drive price towards to the next target at 78.63 (R2) and any further rise would then be limited by last resistance at 78.80 (R3), important technical level.

 

Source: FX Central Clearing Ltd,( Best Forex Trading System | Forex Trading Platforms | Automated Forex Trading Software | FXCC )