EU Morning Report – Risk aversion subsides briefly, markets consolidate!
Thursday, September 9th, 2010Risk aversion subsides briefly, markets consolidate!ÂÂ
- The Dollar Traded weaker yesterday as risk aversion was in put on hold after concerns about the Euro zone faded on solid auction from some European Countries. US stocks also rallied as new stimulus proposals from Obama ahead of the US Mid-term elections were announced. In US the DJIA traded +46 points higher closing at 10387 the S&P traded +7 points higher closing at 1098. Looking ahead, July Trade Balance is forecast at -47.3bn vs. -49.9bn previously. Also released, Weekly Jobless Claims are forecast at 470k vs. 472k previously. US 2 year treasury yields traded lower to 0.50% and the USDJPY price action was between 83.32 – 84.03.
The Euro rallied off lows as the successful Portuguese Debt Auction went well and fears eased on the Irish banking situation. The Irish government proposed that nationalized banks be split into ‘good’ and ‘bad’ banks. German Trade Balance was 12.7bn Surplus in July. ECB member Weber also said that Basel 3 negotiations will be concluded this weekend. EUR/USD traded with a low of 1.2658 and a high of 1.2765 before closing at 1.2730. Looking ahead, August CPI forecast at 0.0% vs. 0.3% m/m. ÂÂ
Currency to watch out for: EURUSD & USDJPY
- § The EURUSD pivot point is at 1.2730 with a preference to enter into Short positions at 1.2720
- § The USDJPY pivot point is at 83.85 with a preference to enter Short positions at 83.80              ÂÂ
Today’s calendar and market movers:
- § Germany Consumer Price index for August expected unchanged.
- § United Kingdom Bank Of England Rate decision expected unchanged at 0.5%
- § United States Jobless Claims for the week expected at 4.45 mio
- § United States Crude Oil inventories for the week expected at 0.7 mioÂÂ
Equity Markets:ÂÂ
- US equities closed positive yesterday with the S&P500 at 0.64% and the DJIA at 0.45%. The European bourses were positive with the FTSE up 0.41% the DAX and the CAC closing at 0.76% and 0.92% respectively. The NIKKEI and the HSI at the time of writing is 0.68% and 0.55% respectively.
Written by Easy-Forex
