Market sentiment set for September boost – Wells Fargo
With global equities up 11% from their June trough and while market volatility is at multi-year lows, Wells Fargo has noted a cautiously positive tone in FX in recent weeks: “Looking ahead, we expect European events to evolve favorably overall in September, which could further boost market sentiment,” says Wells Fargo in a research note. “Against this backdrop, the euro could see a further corrective rally towards $1.2750 and perhaps even $1.3000. For commodity and emerging currencies, we see the Canadian dollar, Mexican peso and Singapore dollar as candidates for currency appreciation.”
In another typical summer holiday session in Europe, the London session ahead will bring a blank economic agenda with no major risk events EUR related. In the sovereign debt auctions front Spain will focus the attention selling up to € 4.5B in 12-18 month bills, while its 10 year yields hit a new 7-week lows at 6.16% yesterday and the risk premium with Germany below the 500 bps. Headlines will keep driving market action on constant speculation about the future of the euro crisis. Starting tomorrow, several key meetings will take place among EZ leaders to deal on current situation.
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UPCOMING EVENTS :
2012-08-21 08:30 GMT | United Kingdom. Public Sector Net Borrowing (Jul)
2012-08-21 10:00 GMT | United Kingdom. CBI Industrial Trends Survey - Orders (MoM) (Aug)
2012-08-21 17:00 GMT | Canada. BoC Governor Council Member Cote Speaks
2012-08-21 23:50 GMT | Japan. Merchandise Trade Balance Total (Jul)
FOREX NEWS :
2012-08-21 04:28 GMT | GBP/USD aiming higher, UK public finances eyed
2012-08-21 04:24 GMT | EUR/USD stretching around 1.2350
2012-08-21 02:05 GMT | EUR/AUD dips to session lows post-RBA
2012-08-21 01:53 GMT | AUD/NZD headed lower in a 6-9 month time horizon - BNZ
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EURUSD : 1.23592 / 1.23597
DAILY WEEKLY MONTHLY
1.2408 | 1.2389 | 1.2369
1.2341 | 1.2321 | 1.2301
SUMMARY : Sideway
TREND : Upward penetration
MA10 : Bullish
MA20 : Bullish
STOCHASTIC : Overbought
MARKET ANALYSIS - Intraday Analysis
EURUSD moved without priority in direction yesterday’s trading session. Currently pair is stabilized above our suggested resistance level at 1.2354. Today we are not expecting significant volatility increase on the markets however break above next resistance level at 1.2369 (R1) would suggest next target at 1.2389 (R2). If the price holds its momentum on the upside we can expect a further rise towards to 1.2408 (R3). On the other hand, loss of next support at 1.2341 (S1) might lead to the further correction development and expose targets at 1.2321 (S2) and 1.2301 (S3) levels.
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GBPUSD : 1.57260 / 1.57265
DAILY WEEKLY MONTHLY
1.5802 | 1.5775 | 1.5744
1.5702 | 1.5672 | 1.5643
SUMMARY : Sideway
TREND : Upward penetration
MA10 : Bullish
MA20 : Bullish
STOCHASTIC : Overbought
MARKET ANALYSIS - Intraday Analysis
GBPUSD successfully penetrated above our expected resistance level at 1.5714 and now is moving toward to our next technically important resistance level at 1.5744 (R1). Clearance here would suggest next target at 1.5775 (R2), and any further rise would then be limited by last resistance at 1.5802 (R3) intraday. From the other side, loss of next support level at 1.5702 (S1) might encourage executing of orders and drive market price towards to the next target at 1.5672 (S2). Brake here is required to put in focus final support level at 1.5643 (S3) levels.
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USDJPY : 79.299 / 79.304
DAILY WEEKLY MONTHLY
79.86 | 79.66 | 79.48
79.17 | 78.98 | 78.78
SUMMARY : Up
TREND : Downward penetration
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Oversold
MARKET ANALYSIS - Intraday Analysis
As expected yesterday, USDJPY continued its correction development and declined below our suggested support level at 79.37. Currently instrument is targeting our next support level at 79.17 (S1). Brake here would suggest next target at 78.98 (S2) and any further fall would then be limited by last support at 78.78 (S3). From the upper side, next resistance level locates at 79.48 (R1), rise above it would enable next target at 79.66 (R2), technically important level for the market sentiment change. Brake he might lead to the further uptrend development with expected target at 79.86 (R3).
Source: FX Central Clearing Ltd, ( Forex Strategy | ECN Forex Trading Systems | Forex Exchange Rates | FXCC )