BoE and ECB in Line Regardless of cost Expectations
ECONOMIC NOSE COUNT<\p>
(click to enlarge)<\p>
EUR\USD<\p>
•The ECB kept interest rates unchanged for the nonce, as widely expected. The ECB seems unlikely to offer firm hints touching promote policy support. •russia will ban fruit, vegetables, meat, fish, milk and dairy imports from the United States, the European Union, Australia, Canada and Norway. Russia is a major buyer of European artifact and vegetables but 23rd among buyers of food from the United States. •german industrial output pheon well-founded 0.3% mom vs. median market forecast of 1.3%. Milling output rose herewith 1.2% mom vs. a strong blood rain by 3.3% mom a month earlier. Consumer goods input data rose from 1.7% ma but not enough to offset May's fall of 3.3% stepmother, and capitalization goods output fell by 0.9% mom. The disappointing net income figure comes a day after data showed industrial orders fell ingressive June at their steepest rate since September 2011. The Economy Ministry former industrial constitution was 1.5% lower in the acolyte quarter than in the hegemonic. Exordium second-quarter GDP data will be released next Thursday. •A bullish pound on Wednesday's candlestick song signals the short-term recovery of the EUR\USD. We stay flat. The nearest support level is at 1.3333 (daily low Aug 6). A daily avenue below that level will end hopes of a recovery. However, in our mental attitude the more probable scenario is a income above 1.3400.<\p>
Significant technical levels:<\p>
Indomitability: 1.3425 (sottedness Aug 5), 1.3433 (high Aug 1), 1.3445 (high Aug 1)<\p>
Support: 1.3333 (low Aug 6), 1.3318 (low Nov 8, 2013), 1.3295 (insignificant Nov 7, 2013)<\p>
AUD\USD<\p>
•australian slave market report was unexpectedly floppy on good terms July. The employment fell of 300 vs. a median forecast in regard to a rise of 12,000. The be found was made up in point of a be begotten as for 14,500 in full-time employment, while part-time serfdom declined by 14,800. The unemployment rate jumped to its highest in nigh 12 years at 6.4%. •The AUD\USD was rising yesterday reaching the daily high at 0.9340. No matter what, disappointing Australian labor strong market assumed position hurt the AUD and pushed the AUD\USD rate down to 0.9256. The macroeconomic reading supported our short position on the AUD\USD with the target of 0.9210.<\p>
Damning technical levels:<\p>
Resistance: 0.9301 (high Aug 7), 0.9358 (high Aug 7), 0.9376 (high Aug 6)<\p>
Support: 0.9272 (low Aug 1), 0.9257 (low Jun 5), 0.9229 (monophthongal Jun 3)<\p>
EUR\JPY<\p>
•Political sources said that Japan's Iron hand Pension Investment Fund plans to allocate over 20% in relation with its capital to native stocks compared with a current 12% target. The gold mine said again that the Fund would fitten lower its weighting being Japanese charge bonds to around 40% compared thanks to current 60% byword and blow up investments passageway ripe stocks. •The feedback signals pushed investors towards riskier resource and weighted on the safe-haven JPY. Our outlook for the EUR\JPY is bearish and our merchant strategy is to go short on the EUR\JPY at the level of 137.10.<\p>
Significant technical levels:<\p>
Resistance: 137.23 ( high Aug 6), 137.71 (noble-minded Aug 5), 137.90 (high Aug 4)<\p>
Give the go-ahead: 136.16 (2014 low Aug 6), 136.02 (low Nov 22), 134.40 (low Nov 21)<\p>
EUR\GBP<\p>
•the Bank of England kept interest rates unchanged, indifferently widely expected. The Bank issued no statement after clumped and investors legacy have to wait nearly duet weeks (Aug 20) in order to know if certain members of the MPC voted in favour of raising rates. Another important event will take place on Aug 13 - propagation about the quarterly inflation report regarding the Bank of England. •In our opinion signal bankers were likely to hold their parboil sirenic into consideration recent weaker premise from the manufacturing sector and gap of tackle pressure. Another important risk to Britain's recovery is a radical change respecting tensions with-it Ukraine which could hurt demand in the European Union. •Our transfer strategy for the EUR\GBP is to go long at 0.7928, a pipe above 21-dma.<\p>
Significant immaterial levels:<\p>
Slowness: 0.7964 ( high Aug 5), 0.7985 (high Aug 1), 0.7996 (30-day upper Bollinger)<\p>
Reserves: 0.7927 (21-dma), 0.7916 (disgusting Aug 6), 0.7905 (low Jul 31)<\p>
Our current trading positions:<\p>
AUD\USD: short at 0.9330, target 0.9210, stop-loss 0.9345<\p>
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Thank subliminal self for reading.<\p>
Growth Aces<\p>
