EU Summit to consider "Grand Master Plan" while Europe Burns
US markets traded with a positive bias today, as the S&P 500 and NASDAQ were both up approximately 0.75% after yesterday’s sell-off. Bonds sold off, but only moderately while crude traded fairly flat in the US. The near-month Brent crude future shot up 2.3% on news that striking oil workers in Norway caused the closure of four oil platforms on top of the shut-down of a large processing and drilling facility that has been idle since Sunday. In this context, the Canadian dollar traded stronger against USD, appreciating to 1.0237 at the close. Prices of some of the petroleum blends that Canada exports, particularly WCS, remain fairly low both in absolute terms and vs. WTI, and the strength in Brent did not carry over into Canadian energy stocks, which were flat on the day. US stocks advanced despite that fact that US consumer confidence fell to a reading of 62 in June from a reading of 64.4 in May. That’s the lowest reading since January of this year, when the index stood at 61.1. The decline was driven: a) by increases in respondents who found employment ‘hard to get,’ b) who found general conditions were ‘worse’, and c) a reduction in intentions to make major purchases.
President of the European Council Herman Von Rompuy published a plan titled “Towards a Genuine Economic and Monetary Union” for discussion at the EU Summit this week. The report outlines his views as to how the European crisis ought to be addressed. Weakness in the euro became more evident throughout the day, as investors lost confidence in any results from the EU Summit and their grand plan, markets want action to help correct today's problems, not plans for the future, when their maybe no EU or euro.
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UPCOMING EVENTS :
2012-06-27 08:30 GMT | UK - BBA Mortgage Approvals (May)
2012-06-27 10:00 GMT | UK - CBI Distributive Trades Survey (Jun)
2012-06-27 12:30 GMT | US - Durable Goods Orders (May)
2012-06-27 14:00 GMT | US - Pending Home Sales (May)
FOREX NEWS :
2012-06-27 04:33 GMT | EUR/USD glued at round 1.2500
2012-06-27 04:28 GMT | Dismantling conventional logic BoJ QE equals Yen weakness - HSBC
2012-06-27 02:48 GMT | EUR/JPY back to opening price
2012-06-27 01:43 GMT | CPI-IPI mix implies more MAS flexibility - Nomura
EURUSD : 1.24990 / 1.24993
DAILY WEEKLY MONTHLY
1.2619 | 1.2575 | 1.2530
1.2441 | 1.2397 | 1.2352
SUMMARY : Down
TREND : Down trend
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Overbought
MARKET ANALYSIS - Intraday Analysis
Daily technicals have just moved to bearish. Whereas short term technicals are providing opposing signals. Supports are seen at 1.2419 and then at 1.2375 both congestion levels. On the other hand, resistance levels are seen at the 21-DMA line at 1.2530 and then at 1.2565. . The primary outlook is lower towards 1.2434 and 1.2360 and a break below 12287 is expected in the near future. The main question is whether or not the decline continues from below 1.2566. The bias remains bearish and strength into resistance, especially on news, should be sold.
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GBPUSD : 1.56337 / 1.56347
DAILY WEEKLY MONTHLY
1.5755 | 1.5703 | 1.5668
1.5581 | 1.5529 | 1.5494
SUMMARY : Neutral
TREND : Up trend
MA10 : Bearish
MA20 : Bullish
STOCHASTIC : Overbought
MARKET ANALYSIS - Intraday Analysis
Indicators are mixed and technicals are not in agreement; near term resistance is at 9 day MA 1.5642 also supports are seen at the 21-DMA line at 1.5541, 1.5535 and then at 1.5473. On the other hand, resistance levels are seen at 1.5660, 1.5734 and then at 1.5578. Whether or not the decline continues from below or above Friday’s high at 1.5634. The overall outlook is bearish against 1.5777
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USDJPY : 79.446 / 79.449
DAILY WEEKLY MONTHLY
80.310 | 80.050 | 79.500
79.205 | 78.950 | 78.655
SUMMARY : Down
TREND : Sideway
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Overbought
MARKET ANALYSIS - Intraday Analysis
Technicals are mostly bearish with others in neutral heading toward the bearish levels. The pair is heading toward the lower end of a wide range bound between 200 day MA 78.84 and 100 day MA 80.51. Support is well defined from the 20 day average, channel support. A break above yesterday's top and nearest resistance 80.62 would encourage further recovery of the dollar. Immediate support is yesterday's bottom at 79.43, and a consistent break below could strengthen the yen further down towards next target 78.55.
Source: FX Central Clearing Ltd, (http://www.fxcc.com)