21 Nov: German political uncertainty undermines the Euro and will remain in focus. RBA Minutes coming up.

By | November 21, 2017

 

It was all about the Euro early in the session when the statement came through that German politics was in turmoil after a walk out by one of the prospective coalition partners. A rebound followed in early European trade once the President asked all parties to reconsider their position and as markets perceived that the economy won’t be hurt by the current political uncertainty. The bounce did not last long and the Euro is now back down towards its lows. All other currencies traded around it, with most ending up pretty much unchanged, with the exception that both the Yen and the Chf are slightly weaker as risk sentiment improved due to the rebound in the stock markets. The metals also fell as risk assets were dumped, while WTI remains choppy but rangebound.

Politics will remain in the spotlight, but Tuesday will be mostly quiet in terms of data, although the RBA Minutes will be the focus in Asia, but with little excitement expected there. The RBA Governor, Lowe will then be speaking in the evening and may create some waves in Europe.  The EU Financial Stability Report and the UK Inflation Report Hearing and Public Sector Net Borrowing Requirements  will be the other highlights in Europe, while from the US the main event will be a speech from Janet Yellen, although the Existing Home Sales are also due. Kiwi traders should look out for the Global Dairy Trade Index, while oil traders will look to the API Weekly Crude Oil Stock Inventory for guidance.

CURRENCIES
EURUSD: 1.1729
Res  1.1745  1.1775  1.1805
Sup  1.1720  1.1690  1.1670
USDJPY: 112.61
Res  112.70  112.95  113.15
Sup  112.20  111.85  111.65
GBPUSD: 1.3231
Res  1.3250  1.3280  1.3320
Sup  1.3210  1.3185  1.3150
USDCHF: 0.9934
Res  0.9945  0.9965  0.9985
Sup  0.9910  0.9890  0.9875
AUDUSD: 0.7547
Res  0.7560  0.7575  0.7590
Sup  0.7535  0.7520  0.7500
NZDUSD: 0.6805
Res  0.6845  0.6920  0.6885
Sup  0.6780  0.6750  0.6715
INDICES / COMMODITIES
S&P: 2582
Res  2585  2590  2595
Sup  2580  2575  2570
DJI: 23397
Res  23425  23465  23555
Sup  23350  23300  23240
ASX SPI: 5981
Res  5995  6020  6045
Sup  5960  5940  5920
XAUUSD: 1277
Res  1280  1285  1290
Sup  1275  1270  1265
XAGUSD: 16.92
Res  17.05  17.15  17.25
Sup  16.80  16.70  16.60
WTI: 56.37
Res  56.90  57.85  58.75
Sup  55.70  55.35  54.75

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