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
✖

Nothing new from the Eurogroup meeting as we await German vote on the ESM

Article By: ,  Financial Analyst
July 10, 2012 9:00 AM

  

EUR/USD

Range: 1.2280-1.2320
Support: 1.2150
Resistance: 1.2450

A very quite start to the week for the single currency after last week’s 3% decline against the USD, there was very little fresh news from the EU Finance ministers meeting yesterday with the usual cry that struggling members should stick to austerity measures. The Euro fails to rally as Spain’s 10-year yield climbed back to the 7.00 boundary yesterday which have risen 11 basis-points to 7.06 percent. Today I’ll be watching for comments from the German constitutional vote on the ESM with anything other than a resounding yes being a total disaster for the Euro.

 

  

GBP/USD

Range: 1.5498 – 1.5533
Support: 1.5380
Resistance: 1.5630

Very little to add as we await second tier data releases today with industrial production expected to have declined 0.2% whilst manufacturing production has a consensus improvement of 0.2%, the UK’s trade balance for May is also released at 9.30 with a consensus reading of -£9 billion expected. Cable holds the initial support of 1.5480 as EUR/GBP fails to close above the 0.7950 with investors now targeting a break of the 0.7900 support.

 

  

AUD/USD

Range: 1.0158-1.0210
Support: 0.9970
Resistance: 1.0330

A slightly weaker reading on Chinese import and export data has weighed on equities and commodity currencies with the region now focusing on Friday’s Chinese GDP data. The Shanghai composite index is now approaching its 2012 lows at 2132. A significant decline to Friday’s number could reverse some of the gains the AUD has made against the Euro, pushing AUD/USD back towards parity.

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