MNI BRIEF: Japan Oct Services PPI Rises 2.9% Vs. Sept 2.8%

MNI BRIEF: Cuts Should Be Timely But Cautious - Buba's Nagel

MNI BRIEF: ECB Policy Decisions Based On Broad Analysis- Lane

MNI China Daily Summary: Monday, November 25

MNI: China CFETS Yuan Index Up 0.01% In Week of Nov 22

MNI: PBOC Net Injects CNY76.7 Bln via OMO Monday

MNI: UK NOV BRC SHOP PRICES +0.2% M/M, -0.6% Y/Y

MNI: JAPAN OCT SERVICES PPI +2.9% Y/Y; SEPT REV +2.8%

EZ/UK T-Bill Calendar: 2/3-Month ATB Auction on Tuesday

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

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

Facing Headwinds at $1.1960 But Upside Remains Favoured.

EUR
MNI (London)
  • As mentioned Monday, market looked to be well positioned for the Nov30 month-end fix (models suggested strong USD sales to be seen) with EUR/USD slowly grinding its way to a high of $1.2003 in pre fix trade.
  • Suggested take profit interest placed into and above $1.2000 (through to the Sep1 YTD high of $1.2011) was able to provide a decent counter, with the sharp reversal to $1.1945 into the fix squeezing out the weaker longs.
  • Rate managed a recovery to $1.1959 then reversed to extend day's low to $1.1924.
  • Reasons for recent EUR gains remain in place, a hoped for fiscal agreement in the US before year end, though expect some hard bargaining with the Jan Georgia Senate election a major factor, COVID vaccine roll out, with equity markets retaining a buoyant feel. The close above October's $1.1881 high provides an outside month, technically bullish and keeps potential progress above $1.2000 in view.
  • On this note EUR/USD managed to recover in Asia, aided by released comments from Fed Powell that vaccine positive for medium term. but met headwinds into $1.1960. Tesla Inc added to S&P 500 index in Dec boosted US e-minis/risk outlook.
  • Break here to expose resistance between $1.1973/84 (61.8%-76.4% of Monday's pullback) ahead of the area now between $1.2003/11. Traders note a total of around E4bln $1.2000 strikes roll off through the week, mainly EUR calls.
  • Support $1.1924, $1.1910/00, $1.1885/80.
  • Final EZ Mfg PMI, Germany Unemployment and EZ flash CPI provides domestic data interest this morning. US Mfg PMI and ISM in focus in NY.
  • Fed Powell before Senate Banking committee 1500GMT, ECB Lagarde at 1700GMT
  • MNI Techs: Outlook remains bullish and attention is on key resistance at 1.2011, Sep 1/YTD high. A break would confirm a resumption of the uptrend that has dominated since Mar 20. On the downside, key trend support remains 1.1746, Nov 11 low. A break would reverse the recent direction and expose 1.1603, Nov 4 low.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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.