EU Morning Report – US Non Manufacturing ISM fails to meet expectations!
Wednesday, July 7th, 2010US Non Manufacturing ISM fails to meet expectations!
- The dollar had another mixed session yesterday as directional bets were nonexistent. Stock markets managed to close positive on the day above 0.5%. From the financial calendar we saw the US non manufacturing ISM index drop to 53.8 for the month of June however the report still shows growth in the economy albeit a lot weaker than hoped. Earnings season starts in one week from now with Alcoa Inc. first to report. Expectations are weak as CEO’s outlook was surveyed. A bad earnings season maybe the next event risk to trigger massive sell offs in riskier assets. USDJPY price action yesterday was between 88.00 – 87.34.
- In the Eurozone focus remains firmly glued to related news on the upcoming stress tests. The results are due to be released on July 23rd however the market is not convinced the results will be beneficial for all EU member states. Today the market will turn its attention to Eurozone GDP expected to come in at 0.2% qq. Near term resistance levels for the EURUSD is touted to lay ahead of the 1.2672 area while major support ahead of the 1.2152. EURUSD price action yesterday was between 1.2661 – 1.2478.
Currency to watch out for: EURUSD & USDJPY
- § The EURUSD pivot point is at 1.2550 with a preference to enter into Long positions at 1.2560
- § The USDJPY pivot point is at 87.25 with a preference to enter Long positions at 87.30
Today’s calendar and market movers:
- § Eurozone GDP for Q1 forecasted to come in at 0.2%
- § Germany Industrial Orders May expected at 0.5%
- § Canada PMI for June expected at 64
Equity Markets:
- US equities were closed positive yesterday with the S&P500 closing at 0.54% and the DJIA closing at 0.59%. The European bourses were positive yesterday with the FTSE up 2.93% the DAX and the CAC closing at 2.15% and 2.73% respectively. The NIKKEI and the HSI at the time of writing is -0.63% and -1.22% respectively.
Written by Easy-Forex
