EU Morning Report – Consumer confidence surprises the market coming at 57.7!
Here are the latest Financial News:
Consumer confidence surprises the market coming at 57.7!
- Markets yesterday were of the V variety across the board. Equity markets along with risk currencies started the day with eerie risk aversion building momentum as fears from the Spanish banking sector continued to weigh on the markets. We also saw a lack of unity between European member states as Germany was against the issuance of a joint EUR bond as it would ”reward states pursuing wrong policies”. Reports also surfaced that Germany’s Finance Ministry is proposing an extension on the short selling ban in Germany to more securities. From the financial calendar however we saw industrial orders come in at a 5.2% increase and the ECB announced that it will absorb EUR 2.6bio in one week fixed term deposits. EURUSD price action was between 1.2177 – 1.2386.
- In the US we had the FOMC minutes show that 3 regional Fed banks are in favor of the first rate hike by 25bp to 1% as it would restore the pre crisis discount rate structure. The highlight of the day however was the Consumer confidence index which beat expectations in May and came in at 63.3 compared to an expectation of 57.7 effectively the equity markets erased all loses and closed at 0.04%. We also had a good Case Shiller (S&P) which came in at 0.3% growth for the month. USDJPY price action yesterday was between 89.25 – 90.48.
- In the UK we saw the release of the quarterly GDP report which showed a 0.3% growth meeting expectations. There was a reduction in government spending by 0.5% for the quarter and private consumption was flat. Price action in the pound yesterday was between 1.4258 – 1.4448.
Currency to watch out for: EURUSD & USDJPY
- § The EURUSD pivot point is at 1.2400 with a preference to enter into Short positions at 1.2390
- § The USDJPY pivot point is at 89.90 with a preference to enter Long positions at 89.95
Today’s calendar and market movers:
- § US Durable Goods Orders for April is forecasted at 1.3%
- § New Home Sales for April is expected at 0.43 mio
- § US Crude Oil inventories for the week expected at 0.2 mio
Equity Markets:
- US equities closed mixed yesterday with the DJIA and the SP500 closing -0.23%% and 0.04% respectively. The European bourses were negative yesterday with the FTSE closing -2.54% the DAX and the CAC closing down at -2.34% and -2.90%. The NIKKEI and the HSI at the time of writing is 0.78% and 1.20% respectively.
Source: Easy Forex
Recommended Forex Brokers: AvaFX and Forex Yard
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