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
✖

Holding pattern ahead of German elections

Article By: ,  Financial Analyst
September 20, 2013 11:06 AM

The FX markets have been extremely quiet in Asia following the dollar’s demise thanks to the FED’s ‘no taper’ shock, although I note the general risk sentiment still feels supported as the JPY trades heavily following the usual ‘Gotobi day fix’ supply of JPY.

Sterling has underperformed against the euro and the dollar as the summer feel good factor for UK data looks to be over. The latest retail sales report disappointed the sterling bulls with the food component leading the decline, although positioning may have a lot to do with the move as longs look to take profits ahead of technical resistance seen at 1.6300.

There has been more rumours and media reports out overnight on how the Japanese Government intend to counter the impending sales tax hike. The latest stimulus rumour comes in the form of a corporate tax cut but the markets seem to be getting bored with speculation as an official announcement isn’t expected until early October following the release of the Tankan report.

US data was strong yesterday with robust readings in homes sales and a drop in weekly jobless claims, although there still seems to be a technical issue as the same two states from last week failed again to report their data. The above consensus US readings was sealed when the Philadelphia Fed Survey gave the highest reading since 2011 led by the employment component. However the market reaction was muted with the general feeling being that we will need a lot more evidence before the taper debate can gain any momentum.

There are few data highlights today with UK public spending numbers this morning followed by the EU consumer confidence reading this afternoon. The market is likely to be cautious going into the week-end as Germany go to the polls, although the only question seems to be who Angela Merkel’s CDU party will be in coalition with?

 

 

 


EUR/USD

Supports 1.3500-1.3475-1.3450 | Resistance 1.3580-1.3630-1.3715


USD/JPY

Supports 99.00-98.80-98.50 | Resistance 99.80-100.00-100.30


GBP/USD

Supports 1.6025-1.6000-1.5965 | Resistance 1.6115-1.6160-1.6225

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