Daily Commentary

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Daily FX Commentary: (Morning Report)

EUR/USD

The outlook here remains bullish for a break through 1.2589 high, en route to 1.2690 resistance area. The intraday bias is slightly negative, as the pair is in a minor corrective pattern below 1.2577 and I expect 1.2530 support area to ensure a reliable basis for the next wave upwards. Key Market Levels Minor Intraday Major Intraweek Resistance 1.2577 1.2589 1.2690 1.2960 Support 1.2530 1.2430 1.2430 1.2290 USD/JPY Still in the broad range between 78.27 and 79.05-15 and the intraday bias is slightly negative below 78.66 resistance, aiming for a reversal around 78.40, which should initiate an upswing to 78.90.  Key Market Levels Minor Intraday Major Intraweek Resistance 79.04 79.64 80.60 81.45 Support 78.27 77.90 77.90 76.00

GBP/USD Yesterday's rebound above 1.5753 is the beginning of a new wave upwards, heading for a break through 1.5912, en route to 1.60+ sentiment area. Initial intraday support is projected at 1.5799 and I expect current minor consolidation below 1.5836 to be limited above that area. Key Market Levels Minor Intraday Major Intraweek Resistance 1.5850 1.5912 1.6050 1.6300 Support 1.5799 1.5745 1.5490 1.5270

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Daily Market Commentary: (Evening Report)

London Market Report

London close: Markets nervous ahead of Jackson Hole
Market Movers

• techMARK 2,099.57 +0.08%
• FTSE 100 5,743.53 -0.56%
• FTSE 250 11,387.69 +0.11%

- Stocks look to Jackson Hole summit for a boost
- Draghi hints at action ahead of ECB meeting
- Glencore leads fallers on growing opposition to merger

Global stock markets were mostly trading in the red on Wednesday afternoon in spite an upwards revision to US economic growth as investors showed caution ahead of a meeting of central bankers this Friday.

Investors are hoping that the Jackson Hole summit this week will see the US Federal Reserve hint at further stimulus measures like it has done in the past. However, in spite of an upwards revision to US gross domestic product (GDP) growth figures for the second quarter today – adjusted to an annual rate of 1.7% from 1.5% - US benchmarks slipped after the opening bell.

Analyst Craig Erlam from Alpari said: "While [the data] in itself is unlikely to cause too much of a stir, the fact that the number has been revised higher since the last meeting is not going to work in the favour of those hoping the Fed loosen monetary policy next month."

European Central Bank (ECB) President Mario Draghi is being forced to miss the Jackson Hole conference due to "a heavy workload", increasing speculation that he could be putting the finishes touches to plans for strong action ahead of an ECB meeting next week.

Draghi hit back at German criticism of his bond-buying proposal today, sparking rumours that something big is on the horizon in Europe. The ECB "will always act within the limits of its mandate," Draghi said in German newspaper Die Zeit. "Yet it should be understood that fulfilling our mandate sometimes requires us to go beyond standard monetary policy tools."

Alpari's Erlam said this afternoon: "I don't think there's any doubt any more than Draghi will announce their bond buying programme at the ECB press conference in September."

In other news, German Chancellor Angela Merkel reiterated her opposition to the European Stability Mechanism being granted a banking licence, saying that the idea is "not compatible with the treaties". However, Italian Prime Minister Mario Monti argued that "modifications to the treaties can be asked for".

Europe Market Report 

Europe close: Europe plays ECB waiting game
- Europe down as markets wait for ECB move
- L'Oreal plunges after missing targets
- US growth revised upwards

FTSE 100: -0.56%
Dax 30:+0.11%
Stoxx 600: -0.17%
Cac 40: -0.51%
Ibex 35: -0.37%
FTSE MIB: -0.33%

European stocks were mostly down on Wednesday as investors waited for intervention by the European Central Bank (ECB) in the ongoing Eurozone debt crisis.

The ECB said today that its President, Mario Draghi, would not be attending the Jackson Hole economic symposium, cancelling a previous commitment to attend the conference taking place this week. The implication is that Europe will not begin buying of the debt of Spain and Italy in the secondary market before the next ECB policy meeting on September 6th.

In the US, Commerce Department figures revealed the American economy had grown at a 1.7% annualised rate between April and June, better than the initial estimate of 1.5%.

US Market Report

US open: Stocks start the day on a mixed note The main US equity benchmarks have begun today's session trading 'mixed' as investors hold out for this evening's Beige Book from the Federal Reserve, not to mention the start of the Jackson Hole Symposium next Friday. Ahead of those events, The US Commerce Department has today revealed a small upwards revision to second quarter GDP growth estimates, to 1.7% year-on-year, versus an earlier estimate of 1.5%. Mining equipment maker Joy Global is moving lower after cutting its financial guidance. Eli Lilly, on the other hand, is dropping after stopping work on an experimental treatment. Front month West Texas crude futures are now 0.56% lower at the moment, trading at 95.79 dollars on the NYMEX. 10 year US Treasuries are now losing 4/32 dollars, with yields at 1.65%.