Daily Commentary

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Daily FX Commentary: (Morning Report)

EUR/USD The pair continues to trend lower, with marginally fresh low posted this morning at 1.2886, following brief 1.2890/1.2952 corrective rally that was capped by 55 day EMA. Loss of momentum, accompanied with negative hourly studies, keeps the downside favored, as 10/20 day EMA bearish crossover pressures. Immediate downside targets lie at 1.2864/54, 4h Ichimoku cloud base / 13 Sep low and 1.2835, 50% of 1.2500/1.3170, ahead of 1.2826/00, 200 day MA / broken med-term bear-trendline off 1.3485, annual high, as break here would confirm top and signal further retracement of 1.2042/1.3170 corrective rally. Overnight’s high at 1.2952, reinforced by 55 day EMA, offers initial resistance, while only regain of 1.3000 handle would delay bears. Res: 1.2939, 1.2952, 1.2971, 1.3000 Sup: 1.2886, 1.2854, 1.2835, 1.2826

GBP/USD Near-term price action remains well supported, despite yesterday’s dip below 1.6200 handle that was contained by 55 day EMA and above important 1.6162 support. The current movements could be described as sideways and consolidating, following brief probe above 1.6300 barrier. With hourly studies in a rather neutral mode and 4h ones slightly aligned to the downside, the most significant picture is on the daily chart. With studies showing signs of fatigue and being well in the overbought zone, as well as double doji candle, could be seen as signals of stronger reversal. Break below initial 1.6162 support is seen as a trigger, with 1.6100, also Fib 38.2% of 1.5769/1.6308, to come in focus on a break. Conversely, lift above 1.6308 to possibly signal a resumption of broader uptrend and break above long-term 1.5300/1.6300 congestion. Res: 1.6242, 1.6258, 1.6294, 1.6308 Sup: 1.6200, 1.6180, 1.6162, 1.6130 USD/JPY The pair’s break and close below important 78.00 support, signals further extension of near-term downtrend from 79.21, 19 Sep high. As near-term studies stand well in the negative territory and ma’s maintaining downward move, focus comes to the next support at 77.62, Fib 76.4% of 77.12/79.21 upleg, loss of which to expose key levels at 77.12 and 77.00. On the upside, previous support at 78.00, now acts as initial resistance, while only regain of 78.36, previous range top, would provide near-term relief. Res: 77.90, 78.00, 78.27, 78.36 Sup: 77.73, 77.62, 77.45, 77.12 USD/CHF The pair extends near-term recovery off 0.9237 low, as break above initial barriers at 0.9254/64, 20 Sep high / Fib 38.2% of 0.9577/0.9237, opened way towards key near-term resistance and pivotal point at 0.9400/16, where 200 day MA / 50% retracement and 13 Sep high lie. Rally was interrupted by brief 0.9390/50 correction. Positive near-term studies remain supportive, with break above 0.9400/16, required to resume recovery towards 0.9447, 61.8% and 0.9482, 10 Sep high. Initial support lies at overnight’s low at 0.9340, reinforced by 55 day EMA, ahead of 0.9329 and 0.9300, loss of which would delay near-term bulls. Res: 0.9390, 0.9400, 0.9416, 0.9432 Sup: 0.9354, 0.9340, 0.9329, 0.9300

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Daily Market Commentary: (Evening Report)

London Market Report

London close: Equities cruise higher
Market Movers

• techMARK 2,142.56 +0.27%
• FTSE 100 5,863.14 +0.42%
• FTSE 250 11,930.25 +0.23%

US consumer confidence data lit a small fire under equities in the afternoon session, after a drab morning in which leading shares moved mostly sideways.

The Conference Board's measure of US consumer confidence rose more than expected in September to its highest level in seven months.

Europe Market Report 

Europe close: Good US news overshadows Spanish woe

Market movers
FTSE 100: +0.36%
Dax 30: +0.16%
Stoxx 600: +0.40%
Cac 40: +0.47%
Ibex 35: +0.45%
FTSE MIB: +0.41%

Most major European markets closed higher on Tuesday as encouraging data from the US outweighed disappointing debt auctions by Spain and Italy.

The S&P/Case-Shiller index of property values in 20 US cities increased 1.2% in July compared to the same month last year; that's the biggest rise in nearly two years and beat expectations of a 1% rise.

Consumer confidence also appears to be on the rise Stateside as the Conference Board's index rose to 70.3 in September from a reading of 61.3 in August.

Less pleasing was news of short - term debt auctions by Spain and Italy in which interest rates rose and the bid-to-cover ratio fell.

Everyone is waiting for a formal request for aid by the Spanish government to the European Central Bank.

The debt-strapped country's Deputy Prime Minister, Soraya Saenz de Santamaria, said today the administration needed to know the amount of Spanish debt the European Central Bank was prepared to buy before requesting intervention in the secondary debt market.

To many this sounded like a bargaining tactic, with Spain's politicians anxious over the extent of budget cuts they would be required to make in exchange for debt purchases.

US Market Report

US open: Stocks move forward The major US equity benchmarks are now registering slight gains. That ahead of the result of today´s meeting between German Chancellor Angela Merkel and the President of the European Central Bank (ECB), Mario Drgahi. More data ahead The Conference Board´s consumer confidence index for the month of September will be released at 3PM. The S&P-Case Shiller price index for the 20 largest metropolitan areas increased at a 1.6% pace in July. Other asset classes also gaining Front month West Texas crude futures are now rising by 0.82% to the $92.68 mark in NYMEX trading. 10 year US Treasuries are now rising by 1/32 dollars, with yields at 1.71%.