MNI China Daily Summary: Thursday, July 4

MNI BRIEF: China Has Four Months To Negotiate EU EV Agreement

RPT-MNI INTERVIEW: ISM Choppiness Not A Clear Signal For Worry

MNI: PBOC Net Drains CNY98 Bln Via OMO Thurs; Rates Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.1305 Thurs; -0.79% Y/Y

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

Factory Orders Decline as Non-EU Orders Dip

DMP survey increases probability of August cut

MNI: UK JUNE CONSTRUCTION PMI 52.2 (FCST: 54.0); MAY 54.7

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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Needs Close Above $1.1920 to Boost Upside Potential.

EUR
MNI (London)
  • Having broken above $1.1930 in early Europe trade Thursday it failed to trigger further upside momentum to take it toward most traders' target level of $1.2000.
  • This failure prompted some cover back, the rate easing to a low of $1.1885 before it met fresh demand interest which lifted it back to $1.1919, closing the US holiday thinned session at $1.1913.
  • Technical traders now want to see a close above the $1.1920/26 area to 'confirm' upside potential.
  • Asia posted an early low of $1.1908 before it bounced, given an added boost as Trump said he would leave the White House if the Electoral College announced a Biden win on Dec14, with traders aware Monday's month-end fixes likely to see USD sales.
  • Rate pushed up to $1.1929, holding firm into Europe.
  • Support seen into $1.1900 ahead of $1.1885/80. Resistance $1.1930, $1.1941, $1.1966/76, $1.2000, $1.2011.
  • Germany Import Prices at 0700GMT, EU Consumer Confidence at 1000GMT lead data interest from France, Spain and Italy.
  • ECB Panetta(dove-0930GMT) and Schnabel(1000GMT) speak.
  • Light US calendar, bond markets close early. Trading rooms to work skeleton staff after Thursday's holiday.
  • MNI Techs: EURUSD holding recent gains and maintains a firmer posture following this week's climb off Monday's 1.1800 low. The pair has probed key resistance at 1.1920, Nov 9 high. A clear breach of 1.1920 would reinforce current bullish conditions and expose 1.2000 handle ahead of 1.2011, this year's high print on Sep 1. Key support remains 1.1746, Nov 11 low. A break would reverse the trend direction and expose 1.1711. Initial firm support lies at 1.1800.
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

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