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
✖

Spain joins the European meltdown with JP Morgan speculation spooking risk further

Article By: ,  Financial Analyst
May 18, 2012 9:00 AM

EUR/USD
Range: 1.2641-1.2708
Support: 1.2625
Resistance: 1.2760

The bad news just keeps coming for risk as if jitters from Spain and Greece were not enough. Spain has now added to the risk off sentiment as rating agency Moody’s cut the long term debt and deposit rating of 16 Spanish banks. There are reports circulating this morning that JP Morgan Chase loss from derivatives trading may widen to $5 billion. Technically EUR/USD looks oversold as we approach the 2012 lows of 1.2625 but with nothing but bad news from Europe I don’t rule out a test of the 1.2500 level.

GBP/USD
Range: 1.5731 – 1.5792
Support: 1.5680
Resistance: 1.5850

The sterling rally seems to be technically over following a dismal week for risk that has seen warnings from UK politicians and the BoE that more stimulus can be added if the European debt crisis crosses the continent to the UK. Cable has traded through the 50% Fibonacci retracement at 1.5768 overnight and with a weekly close below 1.5780 looking increasingly likely the outlook for cable remains bleak.
USD/JPY
Range: 79.18-79.48
Support: 78.80
Resistance: 79.80

USD/JPY dropped a big figure yesterday following a weak reading from the Philadelphia Fed Data and the pairs demise continued in Asia with rumours in Tokyo doing the rounds that the BOJ will leave the policy rates unchanged in its meeting next week. Japan’s Finance Minister Azumi managed to stop further losses to the pair with a comment that ‘some speculators over reacted yesterday leading to a sudden rise in the JPY and that they will closely watch the currencies and take appropriate steps‘.

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