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
✖

Euro sells off on ECB announcement ahead of US non farm payrolls report

Article By: ,  Financial Analyst
April 4, 2014 10:40 AM

The FX markets are consolidating at New York closing levels following the ECB sell off in the euro despite an unchanged outcome to policy. ECB President Mario Draghi stepped up the rhetoric on the quest to fight the threat of deflation. ‘The Governing Council is unanimous in its commitments to using unconventional instruments within its mandate in order to cope effectively with the risks of a too prolonged period of low inflation.” The price stability mandate and credibility of the ECB is now the key for me. Macroeconomic projections still have the HICP inflation expectation at 1% for the second quarter, which means the next HICP release on April 30th needs to rebound from the 0.5% level in March to at least 0.8% to achieve the expected quarterly target and adhere to the mandate of price stability. A miss followed by an unchanged policy decision at the next meeting on the May 8th will surely have credibility consequences.

The Asia session has been lacking in volatility ahead of the US jobs report this afternoon, with the only news overnight pushing USD/CNH just shy of the 6.22 level as Shanghai Securities News reported that soaring bad loans at Chinese banks are worrying local regulators who are subsequently now planning stress tests on the financial institutions to gauge the impact of the “unfavourable situations”.

Today will of course be all about the US jobs report as the market looks for a clean, robust and non-weather distorted release and the expectations are high! The consensus is for a 200k increase in both non-farm and private payrolls with the unemployment rate expected to decline to 6.6%.

 

 

EUR/USD

Supports 1.3680-1.3645-1.3580 | Resistance 1.3750-1.3830-1.3875

 

USD/JPY

Supports 103.50-103.10-102.65 | Resistance 104.20-104.80-105.00

 



GBP/USD

Supports 1.6570-1.6540-1.6480 | Resistance 1.6665-1.6720-1.6750

 

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