Noteworthy News:
- Lloyds on shaky ground early in the day.
- Japan’s GDP at lowest level since 1974.
- Upcoming Economic Data Table.
- The only data of note out in London morning trading was Norway’s Trade Data with its Surplus falling 20.9% y/y in January.
FX Markets:
- Early London saw the EURUSD, GBPUSD, AUDUSD and EURJPY trade to new lows for the day before the EURUSD ran into an immovable object at 1.2730 in the form of a solid bid. The EURUSD continued to trade sideways in a 1.2730/60 range for the majority of the early trading before popping to sit comfortably in a 1.2750/80 range leading into lunch.
- The 1.2700 level continues to remain pivotal with a break below this level likely to be the catalyst for a move in the AUDUSD back to 0.6330 and in the Cable back to 1.4000.
- USDJPY had a brief look above 92.00 before settling back into a narrow 91.60/80 range for the remainder of the morning.
- Ranges: EURUSD 1.2724/1.2808, USDJPY 91.39/92.08, GBPUSD 1.4147/1.4279, AUDUSD 0.6471/0.6541, EURJPY 116.49/117.75, EURGBP 0.8933/0.9011, EURCHF 1.4858/1.4927.
- Support and resistance table.
Equity Markets:
- European equity markets followed Asia’s lead, all heading lower in morning trading.
- The FTSE has been pulled lower by the Materials, Finance, Energy and Consumer Cyclical Sectors with Consumer Non Cyclicals being the the only sector not in the negative. The FTSE is currently down 27.54 pts at 4,162.05 -0.66%.
- The CAC is currently trading down 18.44 pts at 2,979.46 -0.61% with EDF the biggest drag on the market for the day.
- The story is much the same for the Dax with it currently trading 21 pts lower at 4392.18 -0.48%. The Materials Sector is the only positive sector on the Dax so far today with Linde, K+S and Bayer all leading the way.
