Central Bank Day… The ECB and the BoE go heads up
This morning Asian share markets are down over 1.5% as they await the ECB decision. Yesterday Asian markets had continued to outperform for the third consecutive day which marked yet another session of consolidation marking marginal gains after clocking large gains post the European summit last week. Broader indices clambered almost a percent. Global indices too witnessed an assorted trading session as investors hoped for an eased monetary stance by the central banks to support the faltering economy. The market is waiting upon the ECB and the Bank of England meetings today which will provide some direction to the markets.
The European Central Bank (ECB) and the Bank of England (BOE) are both meeting on this morning, and the former is likely cut rates by 25 basis points to its record-low. The BOE may introduce more stimuli after keeping the benchmark rate at an all-time low of 0.5% in June. Yesterday, US markets were closed for the 4th of July holiday so it was light volume all around with little on the news front, little in eco data and little on the political front, except some rhetoric from Iran, pushing up crude oil prices.
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UPCOMING EVENTS :
2012-07-05 11:00 GMT UK - BoE Interest Rate Decision
2012-07-05 11:00 GMT UK - BoE Asset Purchase Facility
2012-07-05 11:45 GMT EMU - ECB Interest Rate Decision
2012-07-05 12:15 GMT US - ADP Employment Change
FOREX NEWS :
2012-07-05 04:27 GMT EUR/USD blocked above 1.2500 ahead of ECB
2012-07-05 04:17 GMT GBP/USD consolidates below 1.56, BoE eyed
2012-07-05 03:21 GMT ECB to hold fire; Draghi statement key - UBS
2012-07-05 02:06 GMT USD/JPY breaks above 80.00
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EURUSD :
DAILY WEEKLY MONTHLY
1.2679 | 1.2643 | 1.2580
1.2481 | 1.2445 | 1.2382
SUMMARY : Down
TREND : Down trend
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Overbought
MARKET ANALYSIS - Intraday Analysis
Signals remain mixed, range trading with support at Friday’s open of 1.2443 and resistance at the 50- day MA of 1.2702. Risk/return is better elsewhere. Firm and sustained trading below 1.2550 however, will be a strong sign that the bears have taken control here again.
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GBPUSD : 1.56058 / 1.56067
DAILY WEEKLY MONTHLY
1.5772 | 1.5731 | 1.5657
1.5542 | 1.5501 | 1.5427
SUMMARY : Down
TREND : Down trend
MA10 : Bearish
MA20 : Bearish
STOCHASTIC : Oversold
MARKET ANALYSIS - Intraday Analysis
Signals are mixed although indicators show that the upward momentum has ended with a strong potential for decline. Expect further weakness today to the next important support level at 1.5545/40. Below this support will confirm that the larger degree downtrend on daily chart has likely resumed and strong weakness should follow.
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USDJPY : 79.766 / 79.770
DAILY WEEKLY MONTHLY
80.455 | 80.215 | 80.081
79.705 | 79.465 | 79.340
SUMMARY : Up
TREND : Up trend
MA10 : Bullish
MA20 : Bullish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
Signals are bullish - indicators all point to upward movement; support is at 21 day MA 79.55. The pair has been trading sideways between 79.60 and 80.00 but a break out of this range is likely to occur soon. There is strong favor the upside here. A move above 80.00 should be enough to signal that a rally toward 83.80 level has begun.
Source: FX Central Clearing Ltd, (http://www.fxcc.com)