MARKET BRIEFING – LONDON OPEN 14.08.2015
Posted: Fri Aug 14, 2015 5:42 amMORE ON ACFXblog.com
MARKET BRIEFING – LONDON OPEN 14.08.2015
Greek Government vote on the third bailout package, which has finally taken place this morning, was approved by 222 votes to 64, with only 11 abstentions. Preceding that, however, there was a serious disunity in the Parliament.
“In angry exchanges, the conservative opposition rounded on the government, warning it not to take its support for granted. “If you want to provoke us – and for us to vote for it – you can’t have it both ways,” Vangelis Meimarakis, the leader of the New Democracy party told finance minister Euclid Tsakalotos” – reported by the watchers of the Greek debates.
“On the left, former energy minister Panayiotis Lafazanis, who leads a rebel bloc of around a quarter of Syriza’s 149 MPs, pledged to “smash the eurozone dictatorship”, while in her concluding pre-vote remarks, Konstantopoulou announced: “I am not going to support the prime minister anymore.”
Looking at the rest of the market, the German economy, the largest in the European Union, expanded less than forecasted as the morning release of the country’s preliminary quarterly GDP revealed. The GDP figure rose to mere 0.4% instead of projected 0.5%. It was also significantly lower than the 0.7% number of the May’s release. The Greek crisis and China’s turmoil have both played a substantial role in the decreasing global demand.
French Preliminary GDP release had a similar outcome with the number coming to 0.0% instead of 0.2% increase. This was a large drop comparing to the May publication when the number stood at 0.7% after the revision.
Later this afternoon, at 1:30 pm CET, we will see the release of the monthly Canadian Manufacturing Sales number, which represents the change in the total value of sales made by manufacturers. This is one of the leading indicators of the economic health, as manufacturing industry is fast affected by the market circumstances and is an early indicator of hiring, investment and spending. This time the number is projected to expand to 2.3% comparing to the 0.1% of last month.
At the same time, there will be monthly the US Producer Price Index will be published. PPI is a weighted index of the wholesale prices and shows trend within the US physical goods-producing industries such as manufacturing and commodities market and is therefore, a leading indicator of the country’s inflation. This time PPI is expected to decrease to 0.1% from the 0.4% figure published last month.
The US Preliminary UoM Consumer Sentiment Index will close the economic news week at 3:00 pm. Financial confidence is an important component of the consumer spending, which account for a major part of a country’s economic activity. The figure is based on the survey of about 500 respondents, rating the relative present and future economic conditions. This month the index is projected to increase from 93.1 to 93.5 mark.
EURUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.1256
Target 2: 1.1040
Projected range in ATR’s: 0.0108
Daily control level: 1.0980
GBPUSD
The intraday technical outlook
Trend 1 hour: Range
Target 1: 1.5709
Target 2: 1.5507
Projected range in ATR’s: 0.0101
Daily control level: 1.5670
USDJPY
The intraday technical outlook
Trend 1 hour: Range
Target 1: 124.96
Target 2: 123.44
Projected range in ATR’s: 0.7588
Daily control level: 123.80
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.9857
Target 2: 0.9667
Projected range in ATR’s: 0.0095
Daily control level: 0.9710
USDCAD
The intraday technical outlook
Trend 1 hour: Range
Target 1: 1.3184
Target 2: 1.2934
Projected range in ATR’s: 0.0125
Daily control level: 1.2910
AUDUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.7452
Target 2: 0.7262
Projected range in ATR’s: 0.0095
Daily control level: 0.7425
GOLD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1129.90
Target 2: 1100.12
Projected range in ATR’s: 14.89
Daily control level: 1077.00
OIL
The intraday technical outlook
Trend 1 hour: Down
Target 1: 51.20
Target 2: 47.96
Projected range in ATR’s: 1.6214
Daily control level: 55.50
MORE ON ACFXblog.com
MARKET BRIEFING – LONDON OPEN 14.08.2015
Greek Government vote on the third bailout package, which has finally taken place this morning, was approved by 222 votes to 64, with only 11 abstentions. Preceding that, however, there was a serious disunity in the Parliament.
“In angry exchanges, the conservative opposition rounded on the government, warning it not to take its support for granted. “If you want to provoke us – and for us to vote for it – you can’t have it both ways,” Vangelis Meimarakis, the leader of the New Democracy party told finance minister Euclid Tsakalotos” – reported by the watchers of the Greek debates.
“On the left, former energy minister Panayiotis Lafazanis, who leads a rebel bloc of around a quarter of Syriza’s 149 MPs, pledged to “smash the eurozone dictatorship”, while in her concluding pre-vote remarks, Konstantopoulou announced: “I am not going to support the prime minister anymore.”
Looking at the rest of the market, the German economy, the largest in the European Union, expanded less than forecasted as the morning release of the country’s preliminary quarterly GDP revealed. The GDP figure rose to mere 0.4% instead of projected 0.5%. It was also significantly lower than the 0.7% number of the May’s release. The Greek crisis and China’s turmoil have both played a substantial role in the decreasing global demand.
French Preliminary GDP release had a similar outcome with the number coming to 0.0% instead of 0.2% increase. This was a large drop comparing to the May publication when the number stood at 0.7% after the revision.
Later this afternoon, at 1:30 pm CET, we will see the release of the monthly Canadian Manufacturing Sales number, which represents the change in the total value of sales made by manufacturers. This is one of the leading indicators of the economic health, as manufacturing industry is fast affected by the market circumstances and is an early indicator of hiring, investment and spending. This time the number is projected to expand to 2.3% comparing to the 0.1% of last month.
At the same time, there will be monthly the US Producer Price Index will be published. PPI is a weighted index of the wholesale prices and shows trend within the US physical goods-producing industries such as manufacturing and commodities market and is therefore, a leading indicator of the country’s inflation. This time PPI is expected to decrease to 0.1% from the 0.4% figure published last month.
The US Preliminary UoM Consumer Sentiment Index will close the economic news week at 3:00 pm. Financial confidence is an important component of the consumer spending, which account for a major part of a country’s economic activity. The figure is based on the survey of about 500 respondents, rating the relative present and future economic conditions. This month the index is projected to increase from 93.1 to 93.5 mark.
EURUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.1256
Target 2: 1.1040
Projected range in ATR’s: 0.0108
Daily control level: 1.0980
GBPUSD
The intraday technical outlook
Trend 1 hour: Range
Target 1: 1.5709
Target 2: 1.5507
Projected range in ATR’s: 0.0101
Daily control level: 1.5670
USDJPY
The intraday technical outlook
Trend 1 hour: Range
Target 1: 124.96
Target 2: 123.44
Projected range in ATR’s: 0.7588
Daily control level: 123.80
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.9857
Target 2: 0.9667
Projected range in ATR’s: 0.0095
Daily control level: 0.9710
USDCAD
The intraday technical outlook
Trend 1 hour: Range
Target 1: 1.3184
Target 2: 1.2934
Projected range in ATR’s: 0.0125
Daily control level: 1.2910
AUDUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.7452
Target 2: 0.7262
Projected range in ATR’s: 0.0095
Daily control level: 0.7425
GOLD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1129.90
Target 2: 1100.12
Projected range in ATR’s: 14.89
Daily control level: 1077.00
OIL
The intraday technical outlook
Trend 1 hour: Down
Target 1: 51.20
Target 2: 47.96
Projected range in ATR’s: 1.6214
Daily control level: 55.50
MORE ON ACFXblog.com