FX Market Little Changed Ahead Of ECB And Fed Speeches
Swissquote Bank Ltd | Sep 28, 2016 07:47AM ET
Market Brief
In overnight trading, Asian markets were unable to hold onto gains from yesterday in spite of the positive lead from Wall Street. With the the main central banks sidelined for longer, the market is looking for a new driver. Investors will therefore focus on US data and the several Fed member speeches due to take place today.
These will include speeches from US Fed Chairman Yellen, Presidents Bullard, Evans and Mester, while across the Atlantic, ECB President Draghi will address the German Parliament’s EU committee.
On the data side, the latest batch of PMIs from the US were slightly encouraging but nothing to get carried away. Markit services preliminary PMI for September rose to 51.9 from 51 in the previous month, slightly above the market’s expectation of 51.2. Finally, preliminary composite PMI ticked up to 52 from 51.5.
Today’s economic calendar is very light but several key US data are due for release before the end of the week. After falling 0.60% yesterday, EUR/USD consolidated at between 1.1203 and 1.1220 as investors await US Fed speakers before choosing a direction. On the downside, the main support is still standing at 1.1123 (low from August 31st), while on the upside a resistance can be found at 1.1366 (high from August 18th).
The New Zealand dollar erased yesterday’s gains and returned to around 0.7270 after testing the 0.7320 resistance in the early European session yesterday. We believe that the kiwi won’t appreciate much against the greenback, as traders expect the reserve Bank of New Zealand to cut rates at its meeting. However, the Fed’s dovishness should prevent a massive debasement of NZD/USD. On the technical side, a support lies at 0.7222 (low from September 6th), while on the upside, the high from September 22nd standing at 0.7369 will act as first resistance.
Asian equity returns were rather negative on Wednesday with the Nikkei sliding 1.31%, while the broader Topix index was off 1.37%. In Hong Kong, the Hang Seng fell 0.42%. Australian and New Zealand shares were up 0.12% and 0.52% respectively. In Europe, futures are trading in positive territory, suggesting a higher open.
Get The News You Want
Currency Tech
EUR/USD
R 2: 1.1616
R 1: 1.1428
CURRENT: 1.1192
S 1: 1.1046
S 2: 1.0913
GBP/USD
R 2: 1.3445
R 1: 1.3121
CURRENT: 1.3019
S 1: 1.2851
S 2: 1.2798
USD/JPY
R 2: 107.90
R 1: 104.32
CURRENT: 100.62
S 1: 99.02
S 2: 96.57
USD/CHF
R 2: 0.9956
R 1: 0.9885
CURRENT: 0.9728
S 1: 0.9522
S 2: 0.9444
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.