Morning Briefing
The Morning Briefing is prepared daily at the start of the European Trading session by RTFX’s trading desk. It presents a roundup of the major news headlines occurring within the global economy that may affect the forex market. This news bulletin also includes a view of our forex calendar for the day, highs and lows achieved in the previous sessions from the forex market, global indices and commodities and brief commentary about the economic headlines.
Morning Briefing for Tuesday, 18 Jan 2011 (Updated 08:37:00 CET)Forex players eye UK CPI data for hints on the next rate hike.
What’s new:
United Kingdom: CPI data eyed for hints on possible rate hikes
Forex: Since beginning of 2011 British pound was stronger against the Euro and the US Dollar
Euro Zone: No market moving news comes out of Finance Ministers meeting for EUR/USD currency pair
Rates in Asia and Indices:
EUR/USD: 1.3361 - 1.3253.
USD/CHF: 0.9655 – 0.9579.
GBP/USD: 1.5957 - 1.5877.
EUR/JPY: 110.22 – 109.59.
USD/JPY: 82.76 – 82.43.
DowJones: 11’787.38 +0.47%
NASDAQ: 2'755.30 +0.73%
S & P 500: 1'293.24 +0.74%
Nikkei: 10’518.98 +0.15%
Shanghai: 2'705.42 -0.05%
Gold: $ 1'365.2
Crude Oil: $ 91.11
Comments:
At 1030 CET today we have CPI data coming out from the United Kingdom. With Forex players hyping speculation that persistent inflationary pressure will in the end translate in the BoE hiking its interest rates sooner than expected, the release is bound to be given the limelight later today. While the British pound might initially benefit from a strong CPI reading, in the longer term it might become difficult to balance a weak economic growth on one side and a central bank adopting tightening measures to mop up excess liquidity.
Since the start of the year the British pound has been strengthening against the Euro and also against the US Dollar.
The EUR/USD corrected lower earlier during the Monday session but was relatively neutral for the rest of the trading – which could be expected given the lack of economic data coming out yesterday and with the United States on holiday yesterday.
It also seems that Forex investors waited for some new direction as they eagerly waited for news to come out of the Finance ministers meeting in Brussels – but at the end no market-moving news came out of the meeting.
EUR/USD has traded in the range of 1.3253-1.3351, to the upside first resistance lies at 1.3370 and to the downside first support lies at 1.3231. RTFX Market Trend for the EUR/USD currency pair remains bearish with a (-5) value.
Good day,
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