ECB has no choice but buy periphery gvrt debt - Nomura
ECB purchases of periphery debt would be effective in ending a dysfunctional government bond marke, says Nomura economist Richard Koo. "While longer-term answers to this eurozone-specific problem include fiscal stimulus to tackle the balance sheet recession itself and a rule that addresses the issue of capital flight by restraining, given that both of those measures will probably take years to implement, the only short-term option is to have the ECB buy the government debt of peripheral countries" the economist said in a research note.
London session ahead will be another quiet one in terms of EUR macro data related coming out, with only French business confidence at 06:45 GMT, followed by Italian consumer confidence and retail sales at 08:00 GMT, and German CPI at 12:00 GMT. In the sovereign debt auctions front Italy will sell 6-month bills, with 10 year bond yields on the rise at 5.82% last, coming from multi-week lows Aug 22 at 5.56% for Italy. There will also be some meetings among different EU leaders going on which could actually produce some headlines.
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UPCOMING EVENTS :
2012-08-29 07:00 GMT Switzerland. KOF Leading Indicator (Aug)
2012-08-29 12:00 GMT Germany. Harmonised Index of Consumer Prices (YoY) (Aug). Preliminar
2012-08-29 12:30 GMT United States. Gross Domestic Product Annualized (Q2)
2012-08-29 18:00 GMT United States. Fed's Beige Book
2012-08-29 04:32 GMT GBP/USD holds bullish stance – V.Bednarik
2012-08-29 04:11 GMT GBP/JPY: Hikkake prints at key support
2012-08-29 03:42 GMT EUR/USD, watch resistance at 1.2600
2012-08-29 02:02 GMT USD on demand in Asia
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EURUSD : 1.25567 / 1.25571
DAILY WEEKLY MONTHLY
1.2633 | 1.2604 | 1.2576
1.2543 | 1.2513 | 1.2481
SUMMARY : Up
TREND : Up trend
MA10 : Bearish
MA20 : Bullish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
The “Bullish” sentiment took up the EURUSD. Instrument reached our target at 1.2547. Potential of going higher is seen today above the next resistance at 1.2576 (R1), surpassing of this level would suggest higher targets at 1.2604 (R2) and 1.2633 (R3). If it fail to go higher, we might see retracement development below the next support level at 1.2543 (S1) towards to next target at 1.2513 (S2). Brake here is required to enable last support level at 1.2481 (S3).
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GBPUSD : 1.58147 / 1.58155
DAILY WEEKLY MONTHLY
1.5913 | 1.5887 | 1.5838
1.5797 | 1.5772 | 1.5747
SUMMARY : Up
TREND : Up trend
MA10 : Bearish
MA20 : Bullish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
GBPUSD currently is under the “Bullish” pressure and moving towards to our suggested yesterday target at 1.5838 (R1), our next resistance level. Brake here would suggest new target at 1.5887 (R2) and any further rise would then be limited to 1.5913 (R3) intraday. Next support level stay at 1.5797 (S1), brake below it might provide a downside priority in direction for the remaining of the day. Next suggested targets at 1.5772 (S2) and 1.5747 (S3) in potential.
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USDJPY : 78.580 / 78.584
DAILY WEEKLY MONTHLY
79.02 | 78.83 | 78.65
78.45 | 78.28 | 78.11
SUMMARY : Sideway
TREND : Sideway
MA10 : Bullish
MA20 : Bearish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
Technically instrument remain trading in a range mode. A break above the first resistance level at 78.65 (R1) would suggest a target at 78.83 (R2). If the price holds its momentum on the upside we can expect a further rise towards to 79.02 (R3) in perspective. All our support levels remain the same as yesterday. Key support level holds at 78.45 (S1). If the pair manage to brake here, we expect next target 78.28 (S2) and any further fall would then be limited to 78.11 (S3).
Source: FX Central Clearing Ltd, ( Forex Trading Hours | Forex Trading Strategy | ECN Forex Trading Tutorial | FXCC )