Not the most exciting session as the market absorbed the move from overnight aided by the rush of blood caused by Australia’s surprise of extraordinary employment data which set up a sharp spike and dragged the EUR and crosses to test highs taking out stops en route.
- IMF Chief – Fiscal Responsibility must return
- German Trade Surplus EUR 10.6bn – lower due to the highest import rise since reunification
- Swiss Unemployment on target 3.9%
- Trichet Faces Market rate threat as debt crisis hurts growth
- French Budget Balance EUR 67.9bn, something the Sarkozy coffers may need to prop !
- UK Halifax Housing Data fell 0.6% – not good but the market ignored it
- China Central Bank affirmations to make sure we know they have good intent…
- UK May Manufacturing Production & Industrial Production had little impact
- German May Industrial Production failed to ignite interest at an increase of EUR2.6bn
- Early Us Treasuries edge up assigns this morning were for a lower opening in the US equity market and analysts look for break of S&P 1131 to calm the bears
- Bank of England leave UK Bank Rate unchanged at 0.5%
- ECB followed suit with no vhange remaining at 1.0%
The action was all in the asian session leaving europe to see some profit taking drift in a quiet morning ; clearly no appetite to soldier forth so that will be for the US, yet again…
EUR/USD took out stops at 1.2685, only exceeding them by 3 pips ! 1.2700 the big target with stops above; range 1.2622/87
EUR/JPY (range 110.75/112.05) was led lower with a tentative drift of USD/JPY towards 88.00 after a high of 88.46 – pushing the lower range as I close off at 88.04. EUR/JPY trades 111.37
CABLE took a soft note losing ground against the USD to 1.5121 after a high 1.5241 ; the resistance at 1.5250/80 still to be tested; EUR/GBP gained on sterling weakness to 83.68, currently 88.52
USD/CHF uneventful following the general tone of the market ranged 1.0483/1.0564
AUD/USD the star of the day shocked with an 80 pip spike on unexpected employment figures more than twice expectation; AUD trades 0.8730, range 0.8621/0.8762
Gold and Oil traded in very narrow ranges
Whither the S & P tonight ?
