Currently 102.22 we’ve had a high post of 102.25 but there’s a stack of offers, mainly out of Japan, between 102.25-30 as we’ve been reporting on the orderboard.
Stop loss buying noted should we break 102.30 with another load of offers at 102.50
Elsewhere USDCHF is also at decent resistance levels with good offers at 0.9080 into 0.9100 but both pairs expected to see demand in the dips ahead of FOMC
Should Yellen&Co disappoint the bulls then we could see some messy knee-jerk reversals
Finally the BOE has lept into action to shut the door on executives and their excessive bonus culture.
No, of course they haven’t.
Yesterday we were primed for the details of how the BOE’s PRA and FCA would tackle financial industry remuneration vs performance and today the BOE have released a statement on it . We’ll, they’ve announced some details that will be up for consultation, which they hope to complete in early 2015 (is that the sound of a can being kicked?)
The main focus points are on accountability and remuneration. They basically want to enhance the function of responsibility in senior managers, introduce a certification regime and implement a new set of conduct rules.
As for remuneration they are looking to deferrals of rewards for a minimum of 5 or 7 years, based on seniority, and want firms to have a greater ability to recover variable remuneration. They also want to tighten up on discretionary payments where banks have been bailed out.
ThePRA has also published final rules on the bonus clawback and have introduced a 7 year minimum period for clawback from the date of the reward. That comes into effect 1ts Jan 2015.
The full statement is here
- Prior 102.00
- Business climate 0.17 vs 0.20 exp. Prior 0.22
- Industrial sentiment -3.8 vs -4.5 exp. Prior -4.3
- Services sentiment 3.6 vs 4.4 exp. Prior 4.2
- Final consumer confidence -8.4 vs -8.4 exp. Prior -7.5
- Consumer inflation expectations 8.7 vs 8.6 prior
Bit of a mixed bag but the better headline number has given the euro a 3 pip lift. Altogether now, “whoooooo”
Eurozone economic sentiment 30 July 2014
USDCHF currently 0.9074 on its steady but punctuated journey to 0.9100. More offers looming
Sellers 0.9085 0.9100 0.9120 0.9150
Buyers 0.9060 0.9040-50 0.9025-30 0.9000-10 0.8985 0.8975
EURCHF currently 1.2161 having finally taken out a few offers but painfully slow still
Sellers 1.2185 1.2200 1.2225 1.2235-40 1.2250
Buyers 1.2135-40 1.2125 1.2100 1.2085 1.2050
USDCAD currently 1.0867 near session highs as USD demand prevails
Sellers 1.0875 1.0890-900 1.0925 1.0940-50
Buyers 1.0840 1.0825 1.0800-10 1.0785 1.0765 1.0740-50
NZDUSD currently 0.8504 having held 0.8500 again so far
Sellers 0.8525-30 0.8550 0.8575-85 0.8600 0.8625
Buyers 0.8500-0.8490 (stops below) 0.8475 0.8450 0.8400
Not a good sign for Europe so far with softer CPI seen in the German states and Spain.
The Euro has nudged through 1.3400 to 1.3395 after holding the 1.34 line overnight. Bounces did not go meow.
The euro is finding no love whatsoever and we’re down around 300 pips on the month. The 55 mma at 1.3383 and the 100 wma at 1.3348 are the last of the longer term moving averages and the next big tech level is the 38.2 fib of the July 2012 lo/hi at 1.3247
EUR/USD Monthly chart 30 07 2014
I mentioned last night that I was thinking about cutting back some of my longs but now I’m thinking about pulling the whole trade. The cards are stacked up too much against the position and I’ve almost lost all faith in it. When that happens it’s decision time on admitting you’re wrong, taking the hit and moving on. There’s a lot of noise coming up with the FOMC and data so there’s going to be some choppiness but I may decide enough is enough. If the price hold up here I’ll see if I can limp it through the EZ CPI data but if that falls below the 0.5% expected I’m bailing out.
That’s probably everyones cue to go long as we all have that habit of getting out for a loss at the eventual top or the bottom
All coming in as bit of a mixed bag so far so we’ll be waiting for the composite figure at 12.00 GMT for further clues
Currently 136.91 in an ever-tightening range
Sellers 137.00 137.10 137.20-30 137.50 137.75 138.00-10
Buyers 136.75 136.55-60 136.35-40 136.25-30 136.00 135.85 135.65 135.00
Currently 0.7911 still in a 00-30 range
Sellers 0.7925-30 0.7940-50 0.7965 0.7975-85 0.8000-10
Buyers 0.7900 0.7890 0.7875 0.7850-60 0.7825-35 0.7800-10
EURUSD still on the back foot at 1.3397
- banks eased credit standard for loans to households
- credit standards still relatively tight
- net demand for loans to companies increased
ECB’s latest quarterly bank-lending survey here
Easing credit standards doesn’t augur well
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