Intraday Market Thoughts

Market Trades In Ranges; Factory Orders Next

by Patrik Urban
Jun 4, 2012 12:29

UK trading quiet; German continues to oppose euro bonds; Chinese non manufacturing PMI declines; Eurozone sentix confidence falls and PPI eases. Market turns to factory orders. Details of today's Intermarket Insights (charts & trades) are in the final paragraph of this IMT.

The London session has been quiet as UK banks are closed today and tomorrow in observance of the Spring Bank holiday and Queen's diamond jubilee. The USD trades slightly weaker against most majors and major European equities are gaining about 0.75%.

The battle for euro bonds may be harder than the French president Hollande hoped as evidenced by chancellor Merkel's yesterday comments that under no circumstances she would agree to the idea of euro bonds. Instead of equal interest rates, the uncompetitiveness of the European economy has to be addressed, she added.

Over the weekend we learned that Chinese non manufacturing PMI declined to 55.2 in May from previous 56.1 which is the slowest pace of expansion in over a year. The Aussie, which is the currency that usually responds the most to Chinese data trades higher as traders react to Friday's NFP result and prepare for the upcoming cash rate decision.

Eurozone Sentix investor confidence declined further to -28.9 in June from previous -24.5 and reached nearly three year lows. Nevertheless, this was still better than anticipated -29.1. Eurozone PPI remained unchanged in April m/m and declined to 2.6% from 3.5% y/y.

The US calendar is limited today to factory orders at 10:00 am ET that are expected to rise 0.3% in April after dropping 1.9% in March.

Today's Intermarket Insight titled "Euro Rebound or Consolidation?" highlights the key macro surveys helping to deteremine NFP lead eleme several US surveys. We issue the latest trading ideas in EURUSD, USDCAD, GBPUSD. AUDUSD and gold. For direct access to today's Intermarket Insights, click here: ; Non Subscribers can join here:


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