EU Morning Report

Focus now turns to the Bank of England meeting minutes

  • The euro edged higher against the dollar during yesterday's Asian session supported by the falling eurozone periphery bond yields and hopes that the EU leaders will agree on a bailout package for Greece during Thursday's emergency meeting. Against the dollar, the single currency edged as high as 1.4216 rebounding from 1.4068. Versus the safe haven Swiss franc, the single currency rose to 1.1686 recovering from 1.1514.
  • The US dollar recovered during the US session on better than expected economic data and encouraging corporate figures. US debt ceiling still remains a concern but progress in US debt talks support the dollar.   Investors' attention now turns to the US Home Sales data released today at 14:00 GMT. Against the Japanese yen, the dollar rose to 79.31 from 78.81.
  • The Canadian dollar rallied yesterday after the Bank of Canada interest rate decision. Interest rates remained unchanged at 1% but the central bank sounded hawkish in the following statement emphasizing on the strong economy and signaling a rate hike in the following months. Against the Loonie, the dollar dipped to 0.9482 from 0.9592.
  • Sterling rose yesterday supported by a heightened risk appetite in the market. Against the greenback, the British pound rose to 1.6177 from 1.6055. Focus now turns to the Bank of England meeting minutes released today at 08:30 GMT.
  • The Australian dollar rose yesterday against the dollar and jumped as high as 1.0749 from 1.0608. Aussie's neighbor, the Kiwi remains firm versus the greenback, climbing to 0.8571 from 0.8435.
  • Oil prices climbed to 98.96 dollars a barrel today from 95.92. Gold edged lower to 1582.05 dollars an ounce from a record high at 1610.01. Silver also fell to 38.54 dollars an ounce from 40.83.

Currencies to watch out for: EURUSD & USDJPY  

  • § The EURUSD pivot point is at 1.4095 with a preference to enter Long positions at 1.4100
  • § The USDJPY pivot point is at 78.85 with a preference to enter Long positions at 78.90
  • § The OIL pivot point is at 97.65 with a preference to enter Long positions at 97.65
  • § The Gold pivot point is at 1600 with a preference to enter Short positions at 1600                      

Today's calendar and market movers:

  • § Europe Consumer Confidence in July is forecast to fall to -10
  • § US Existing Home Sales in June is forecast to gain 5.5%

Equity Markets:                                         

US equities were positive on Tuesday with the S&P500 trading up 1.63% and the DJIA up 1.63%. The European bourses were also positive with the FTSE trading up 0.65%, the DAX up 1.19% and the CAC up 1.21%. The NIKKEI and the HSI at the time of writing are trading up 1.09% and 0.1% respectively.

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