EU Morning Report 

Euro slides on heightened risk aversion 

  • The euro continued its downward path after depreciating against all its major counterparts on Friday. Greece approved a new austerity package but it failed to ease fears for a Greek default. Versus the dollar, the single currency dipped to an eight-month low at 1.3313 from 1.3689. Against the Japanese yen, the euro fell at 102.42 from 104.33 on heightened risk aversion in the market and the pair is now trading around 102.60. Against the Sterling, the single currency dipped to 0.8562 from 0.8709.
  • The US dollar initially appreciated but presented a more diverse picture thereafter. Against the Swiss franc, it gapped through 0.91 from the 0.9080 to 0.9109 and is now trading sideways looking for direction. Against the Japanese yen, the dollar opened at 77.08, reached 77.26 and edged as low as 76.95 before returning to its opening levels. The Sterling is the biggest loser against the dollar dropping to 1.5490 from 1.5665. Focus turns to the US ISM Manufacturing expected later today.
  • The Australian dollar initially appreciated against the US dollar opening at 0.9661, unsuccessfully attempting to pierce through 0.97 only to go down to 0.9591. It is now trading around 0.9630. Australian dollar is losing against the Canadian dollar, reaching a low of 1.0088 and is now trading at 1.0110. 
  • Oil prices exhibited small loses opening at 78.35 and then going down to 77.73. Gold opened at 1623.38 but it soon climbed to 1635.93 and is now trading around 1.3250. Silver appreciated as well, opening at 29.9225, recording a high of 30.7663 and is now concentrated around 30.5.

Currencies to watch out for: EURUSD & USDJPY

  •  The EURUSD pivot point is at 1.34 with a preference to enter Short positions at 1.34
  •  The USDJPY pivot point is at 76.75 with a preference to enter Long positions at 76.75
  •  The OIL pivot point is at 79.70 with a preference to enter Short positions at 79.70
  •  The Gold pivot point is at 1645 with a preference to enter Short positions at 1645

Today's calendar and market movers:

  •  US ISM Manufacturing PMI in September is forecast to fall to 50.5

Equity Markets:

US equities were negative on Friday with the S&P500 trading down -2.50% and the DJIA down -2.16%. The European bourses were also negative with the FTSE trading down -1.32%, the DAX down -2.44 and the CAC down -1.51%. The NIKKEI and the HSI at the time of writing are trading down -1.78% and down -4.62% respectively.

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