Daily Market Commentary: (Evening Report)

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Daily FX Commentary: (Morning Report)

EUR/USD The pair breaks above near-term breakpoint at 1.2320 zone, after break consolidation above last Friday’s fresh 1 ½ week low at 1.2240. Surge through initial barrier at 1.2340, 50% of 1.2441/1.2240 descend, opens Fib 61.8% at 1.2364, break of which to signal near-term base and expose next significant barriers at 1.2386, 09 Aug high and psychological 1.2400 level, to confirm higher low of a larger picture short-term uptrend from 1.2042, 24 July bottom. Hourly indicators are above midlines, while 4h ones are pointing higher and see potential for fresh gain. However, overbought hourly conditions, warn of possible corrective action, yet not signal of reversal been generated at the time of writing. Previous strong support zone at 1.2320/00, now offers initial support, reinforced by ascending 20 day EMA. Res: 1.2364, 1.2386, 1.2400, 1.2428 Sup: 1.2343, 1.2325, 1.2315, 1.2300

GBP/USD Posts fresh highs above 1.5700 handle, after 20 day EMA contained brief corrective dip off 1.5700 at 1.5656, today’s low. As hourly studies keep the positive path, despite losing momentum and price holds 1.5700, potential is seen for test of first strong barrier at 1.5721, 200 day SMA, ahead of possible extension towards two-month range tops at 1.5760/70 zone. Today’s low at 1.5656, reinforced by ascending 55 day EMA, underpins the action and only break here would delay bulls. Res: 1.5721, 1.5729, 1.5736, 1.5766 Sup: 1.5684, 1.5656, 1.5640, 1.5625 USD/JPY Today’s bounce off strong 78.15 support zone, failed to surpass the near-term ceiling at 78.40 zone, where 20/55 day EMA’s bearish crossover, limited gains for now. As near-term studies remain in negative territory, with hourlies gaining some momentum, regain of minimum 78.50 zone, also Fib 61.8% of 78.78/78.15 downleg, is seen required to improve the near-term outlook and open the upper levels of short-term range at 78.80/79.00. Strong supports lie at 78.15 double bottom and round figure support at 78.00, below which, bears will come fully in play. Res: 78.36, 78.45, 78.64, 78.78 Sup: 78.15, 78.00, 77.93, 77.65  USD/CHF The price drops after losing important support at 0.9750 zone, extending losses to 0.9715, Fib 61.8% of 0.9656/0.9808 upleg and sidelining short-term bulls. As hourly studies dip into negative zone and 4h chart indicators attempting at their midlines, as well as 20 day EMA crossing below 55 day one, more pressure is seen at the pair in the near-term. Below 0.9715, next significant support lies at 0.9700, round figure and 09 Aug low, loss of which would make the downside more vulnerable and and turn focus lower. Negative short-term structure off 0.9970, see potential of further weakness, as daily indicators are breaking below the centrelines, with loss of short-term breakpoint at 0.9660 zone seen as a trigger. Previous support at 0.9750, now acts as initial resistance, while only regain of 0.9800 provides relief. Res: 0.9750, 0.9784, 0.9800, 0.9808 Sup: 0.9716, 0.9700, 0.9684, 0.9656

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Daily Market Commentary: (Evening Report)

London Market Report

London close: Stocks fall as post-Olympic blues set in
Market Movers

• techMARK 2,111.22 -0.22%
• FTSE 100 5,831.88 -0.26%
• FTSE 250 11,436.81 -0.30%

- Global equities finish broadly lower
- GDP growth a concern in Japan and China
- Greek GDP beats expectations

Mixed news from the Eurozone and concerns over growth in Asia sent most stock markets across the globe into the red on Monday.

"As the post-Olympic blues set in, European markets appeared to sense the weaker sentiment, with poor volumes and a dearth of economic data resulting in a mainly sideways and lacklustre trading session," said market strategist Brenda Kelly from CMC Markets.

Meanwhile, trader Simon Furlong from Spreadex, said that investors were "biding their time till tomorrow as GDP figures in Europe and retail figures in the states come out."

The Japanese economy grew by just 0.3% in the second quarter on the back of weak consumer spending. Annualised gross domestic product (GDP) growth was just 1.4% in the April-June period, well below the 5.5% growth the previous quarter and under the 2.3% expansion expected. However, the poor data has increased speculation that the Bank of Japan would step up with policy easing.

China was also providing some concern on markets today after Bank of America Merrill Lynch lowered its 2012 GDP growth estimate for the world's second-largest nation from 8% to 7.7%. The US investment bank is the latest in a string of brokerages to reduce its growth forecasts for China.

In the Eurozone, Greek GDP fell by 6.2% year-on-year in the second quarter, better than the 7.6% contraction expected by Barclays Capital. "This looks like a better start to the year than we expected," said the investment bank's analyst Fabrice Montagne.

Michael Fuchs, the deputy head of Angela Merkel's CDU party, said at the weekend that Germany will block new aid to Greece if it's not happy with the Troika's findings. "You can quote me: even if the glass is half-full, that is not enough for a new aid package...Germany cannot and will not agree to that," he said.

Europe Market Report 

Europe close: Stocks fall ahead of Eurozone GDP

CAC 40: 3,426 (-0.27%)
FTSE MIB: 14,533 (-0.11%)
IBEX 35: 7,070 (+0.31%)
XETRA DAX: 6,910 (-0.50%)

European stocks mostly declined on Monday as concerns over the global economy pressured investors to take profits ahead of the release of Eurozone gross domestic product (GDP) figures.

Annualised Japanese GDP increased by just 1.4% in the second quarter, well below the 5.5% growth the previous quarter and under the 2.3% expansion expected. Meanwhile, Bank of America Merrill Lynch has lowered its 2012 GDP growth estimate for China from 8% to 7.7%

Closer to home, Spanish 10-year bond yields declined today (down 5.9 basis points at 6.848%) after a German official downplayed the possibility of the Southern European nation requiring a bailout.

An Italian one-year bond sale went pretty smoothly today, as expected. The sale easily raised the €8bn targeted, with demand 1.69 times the offer, compared to 1.55 times last month.

Concerns about Belgium were also in focus today as the nation's central bank governor Luc Coene admitted that the government will likely miss its deficit target set out with the European Union this year. Coene said that zero economic growth would translate to a deficit of slightly more than 3% of GDP in 2012, above the initial target of 2.8%.

Meanwhile, Greek GDP fell by 6.2% year-on-year in the second quarter, better than the 7.6% contraction expected by Barclays Capital. "This looks like a better start to the year than we expected," said the investment bank's analyst Fabrice Montagne.

US Market Report

US open: Profit takers emerge Dow Jones: -66 at 13,142 S&P 500: -6 at 1,400 NASDAQ Composite: -13 at 3,007 After drifting gently lower at the outset the decline picked up pace as the morning wore on, pushing the benchmark S and P 500 index below the 1400 level, having on Friday racked up its longest climb since December 2010. Macro data has not been strong enough to encourage investors to continue chasing prices higher. GDP numbers disappoint The Japanese economy grew by just 0.3% in the second quarter on the back of weak consumer spending. Annualised growth was just 1.4% in the April-June period, well below the 5.5% growth the previous quarter and under the 2.3% expansion expected. Greece's economy contracted by 6.2% in the second quarter, versus expectations of a 7% fall, leading to some pundits to suggest Greece is ready to pull out of its tailspin.