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Currency Updates:
The euro (EUR) gained ground against the US dollar (USD) currently moving above 1.3028. The single currency had previously reached a six month low after Italian election results did not show a clear winner making negotiations for forming a strong government difficult. Yesterday’s Eurogroup meeting brought the Cyprus bailout one step closer to resolution, however the European economy still looks fragile and any growth may prove anemic.
- WTI Crude (OIL) dropped to 89.45 before rebounding to 90.41 following worse than expected Chinese growth forecasts.
- The US 500 (SPI), which tracks the top 500 US corporations, gained as investors switch from riskier bonds to US equities
- Weekly option volatilities for the EURUSD dropped from 11.15 to 10.00 as investors return to riskier returns and option premiums fall.
Stay in tune throughout the day with foreign exchange bullets !
Movers & Shakers
AUDUSD
The Australian dollar (AUD) reversed its negative trend, moving from 1.0118 to 1.0252 against the US dollar (USD). The Aussie took off after remarks from the Reserve Bank of Australia that it will not cut rates further as previous cuts had the expected outcomes.
Outlook
EURUSD Pivot Point 1.3050 with a preference to go SHORT at 1.3050.
Sentiment is 51% of deals to buy EUR
USDJPY Pivot Point 93.10 with a preference to go LONG at 93.10.
Sentiment is 42% of deals to buy EUR
GBPUSD Pivot Point 1.5075 with a preference to go LONG at 1.5075.
Sentiment is 64% of deals to buy GBP
AUDUSD Pivot Point 1.0180 with a preference to go LONG at 1.0180.
Sentiment is 78% of deals to buy AUD
GOLD Pivot Point 1565 with a preference to go LONG at 1565.
Sentiment is 63% of deals to buy GOLD
OIL Pivot Point 90.90 with a preference to go SHORT at 90.90.
Sentiment is 71% of deals to buy OIL
US 500 Pivot Point 1506 with a preference to go Long at 1506.
Sentiment is 23% to buy US 500
UK 100 Pivot Point 6314 with a preference to go Long at 6314.
Sentiment is 25% to buy UK 100
Calendar
EUR – UK Italian Services PMI at 08:45(GMT) Forecast 45.90
GBP – Services PMI at 09:30(GMT) Forecast 51.1
USD – Non-Manufacturing PMI at 15:00(GMT) Forecast 55.0