EUR/USD: 1.3222
There is not a lot to add today on the Euro as the market focused on the “growth currencies” following the BHP announcement that China’s demand for iron ore is “flattening out” and demand for steel will drop to “single digit” figures. Equity markets did not like this and the Dax, CAC and FTSE all finished 1% -1.5% lower. The S+P finished down 0.3%.
German PPI was pretty much as expected +0.4% mm and +3.2%yy and the US housing data was mixed but had little market effect.
Technically the Euro is pretty much unchanged from yesterday. The short term outlook remains unchanged. As long as 1.3290 resistance remains intact, it still appears that 1.30/1.33 is the range to trade. Within that, it looks today as though 1.3185/1.3245 should cover the current session. The charts are all a bit mixed and not really suggesting much in either direction. There is no data of note out today either so it appears unlikely that we should expect too much from the Euro in the next 24 hours. If anything I would remain a mildly interested seller into strength on the day, but I don’t see anything to get too excited about.
Of more interest is Eur/Aud (1.2615) and Eur/Nzd (1.6188). These are both picking up momentum to the topside and look as though they may have the legs to head towards 1.2760 (38.2% of1.3803/1.2134) and 1.6547 (38.2% of 1.8127/1.5580). Interim support is now at 1.2425 and 1.5950.
US existing home sales today.
