CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Draghi and Carney likely to add Volatility to Euro GBP

Article By: ,  Financial Analyst
February 7, 2013 9:20 AM

Overnight data was slightly positive with stronger Japanese machinery orders and a positive headline number from the Australian labour report. The Australian unemployment rate dropped to 5.4% adding 10,400 jobs but the details were poor as the report revealed that the rise came from part time jobs with full time employment dropping by 9800.

The FX market has been in a holding pattern for the past 36 hours as we await the main events of the week in the form of Mark Carney’s testimony to the treasury committee and Mario’s Draghi’s press conference post the ECB meeting.

At 9.45am GMT the incoming BOE Governor is very likely to be asked to explain comments he made in Toronto in December where we was very vocal about tying monetary policy and unconventional easing to economic growth ‘in exceptional times’.

The questions and answers after the ECB statement is the main event today as ECB  President Draghi is likely to be pressed on the recent strength of the EUR following the Germany versus France war of words with the French saying the ECB needs an FX policy to halt the appreciation that is hurting French growth with the Germans countering such comments with ‘sensible for financial markets to determine exchange rates’.

This morning we see the latest industrial production numbers from Germany, Spain and the UK plus the trade balance from the new world cup favourites. The US data this afternoon comes in the form of weekly jobless claims.

 


EUR/USD

Supports 1.3500-1.3460-1.3425 | Resistance 1.3595-1.3625-1.3710


USD/JPY

Supports 93.30-93.10-92.60 | Resistance 94.15-94.85-95.00


GBP/USD

Supports 1.5630-1.5600-1.5550 | Resistance 1.5685-1.5715-1.5800

 

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024