Intraday Market Thoughts

Golden Cross in EURUSD; CAD GDP & Chicago PMI Next

by Patrik Urban
Oct 31, 2012 11:35

EURUSD sees a daily Golden Cross as Ashraf warned last week in Tuesdays Premium Insights. German and French data above expectation; Eurozone and Italian unemployment rate higher; Eurozone CPI lower; German auction. Market awaits Canadian GDP and Chicago PMI. Ashrafs piece on the Canadian dollar on Oct 25. See more below. EURUSD, USDJPY and cable hit all targets. See more below.

USD weakens across the board except JPY in the ongoing session. European equities are gaining about 0.5%. The relative strength winner is CHF along with NZD while JPY is the weakest.

Market sentiment improved at the beginning of the London session after German retail sales surprised to the upside and grew 1.5% in September and French consumer spending rose 0.1% after a 0.8% decline seen in August. EURUSD broke above the 1.30 level but has not seen much follow through. EURJPY pushed higher and continues to trade near session highs around 103.80.

Not all data was positive though - Italian unemployment rate ticked higher in September to 10.8% from previous 10.6% and Eurozone unemployment rate rose to a fresh high of 11.6% from 11.5% leaving nearly 18.5 million people out of work. Eurozone consumer inflation eased to 2.5% from 2.6%.

Germany sold 30 year bond totaling EUR 1.704 bln vs. EUR 2 bln target. The average yield rose to 2.34% from 2.17% but cover rose considerably to 2.69 from 1.5.

The US session kicks off at 8:30 am ET with Canadian GDP that is expected to grow 0.2% in August m/m but to slow to 1.7% from 1.9% y/y. Chicago PMI is due at 9:45 am and it is anticipated to rise to 51.4 in October after falling to 49.7.

Markets also await Eurozone finance ministers conference call that will focus on the release of the next tranche of the bailout for Greece. However, no definite decisions are expected today.

1 of 2 EURUSD Premium longs hit all targets, the other in progress. USDJPY sot and GBPUSD long hit all targets. 1 of 2 Gold stopped out. silver and EURGBP in progress, while AUDUSD hit all targets and CADJPY stopped out. For direct access to these Premium trades, please click here: Non subscribers, can click on here to join:


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