MNI: BANXICO RATE CUT DECISION 4-1; HEATH VOTED TO HOLD

MNI: BANXICO CUTS RATES BY 25 BPS TO 10.50%

MNI BRIEF: Canada Business Closure Rate Highest Since Pandemic

MNI CNB WATCH: More Easing, But Tight Policy Still Needed

MNI China Daily Summary: Thursday, September 26

MNI BRIEF: China GDP Growth Likely 4.8% In Q3 - BOC

EZ/UK Bond Supply Calendar: 5/5/10-Year BTPs / CCTeu Due Friday

US EIA:NAT GAS STORAGE +47 BCF TO 3,492 BCF SEP 20 WK

MNI: US NAR AUG PENDING HOME SALES INDEX 70.6 V 70.2 IN JUL

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

EUR: Positive Equity Sentiment Boosts Euro, EURJPY Prints Back Above 161.00

EUR
USGlobalCEEMEABulletMarketsForeign Exchange BulletsRegionNorth America
  • Despite today’s poor German IFO data adding to the weaker-than-expected flash PMIs on Monday, the Chinese stimulus announcement overnight has boosted sentiment in equity markets, which in turn has provided support for the single currency.
  • EURUSD (+0.28%) has been steadily grinding higher, rising back towards the US session highs from yesterday. Above here, 1.1169 is the high this week and a resumption of gains would refocus the market’s attention on 1.1202, the Aug 26 high and bull trigger.
  • In similar vein, the PBOC stimulus and an uptick for core yields has prompted a solid recovery for EURJPY, which briefly traded back above 161.00 in recent trade, from a 159.24 low overnight. The cross is approaching the 50-day EMA at 161.73, an average we have not traded above since late July.
  • Countering the narrative is EURGBP, which continues to consolidate at depressed levels, following a range breakout to the downside during yesterday’s session. Alongside the breach of key support at 0.8383, we have also breached 0.8340 overnight, the Aug 2 ’22 low, placing the pair at the lowest level since April 2022. Support for the Pound is emanating both from its risk beta as well as solid growth momentum and a cautious central bank.
200 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Despite today’s poor German IFO data adding to the weaker-than-expected flash PMIs on Monday, the Chinese stimulus announcement overnight has boosted sentiment in equity markets, which in turn has provided support for the single currency.
  • EURUSD (+0.28%) has been steadily grinding higher, rising back towards the US session highs from yesterday. Above here, 1.1169 is the high this week and a resumption of gains would refocus the market’s attention on 1.1202, the Aug 26 high and bull trigger.
  • In similar vein, the PBOC stimulus and an uptick for core yields has prompted a solid recovery for EURJPY, which briefly traded back above 161.00 in recent trade, from a 159.24 low overnight. The cross is approaching the 50-day EMA at 161.73, an average we have not traded above since late July.
  • Countering the narrative is EURGBP, which continues to consolidate at depressed levels, following a range breakout to the downside during yesterday’s session. Alongside the breach of key support at 0.8383, we have also breached 0.8340 overnight, the Aug 2 ’22 low, placing the pair at the lowest level since April 2022. Support for the Pound is emanating both from its risk beta as well as solid growth momentum and a cautious central bank.