Some very thin and big moves since the Christmas period started. We’re hoping for the markets to get more stability as the year starts – with most getting back to work this week.
Main news so far is coming from Asia, with China PMI hitting a 28-month low; this cements the December slowdown, which in turn is giving the USD strength so far this year.
To start off the year we have a pretty busy schedule of events. We start today with the PMI’s for the major countries – China already coming in at a low and the Eurozone in the same as last so no change.
The UK up next, with most expecting this to continue to be on the strong side above the 60 level.
US ISM non-manufacturing PMI expected stronger later today.
This week some big figures to look out for are EU CPI, US ADP and FOMC, and the UK rate announcement and statement (Carney is expected to lower the target rate of unemployment so they can keep rates lower for longer).
There’s also the EU rate and lastly – to top off a very busy week of the New Year – is the US non-farm payrolls: so plenty to be looking out for and lots of changes in directions for currencies this week.
Supports 1.3560 1.3535 1.3500 | Resistance 1.3625 1.3675 1.3725
Supports 104.10 103.75 103.23 | Resistance 104.45 104.95 105.50
Supports 1.6350 1.6330 1.6300 | Resistance 1.6390 1.6425 1.6480