24 Jan: Strong ZEW underpins the Euro ahead of the ECB, tomorrow. US$ remains under pressure. PMIs today.

By | January 24, 2018

 

The US$ is mixed again on Tuesday, while stocks march on to ever-higher levels (Netflix +10%) and WTI is back at trend highs. In the currency markets, while the Yen remains underpinned after the slightly more upbeat outlook on inflation from yesterday’s BoJ meeting, the Euro is steady – trading in a tight range, mostly below 1.2300 – but unable to make any progress following the positive ZEW, with traders taking a cautious stance ahead of tomorrow’s ECB Meeting. Confidence data from Germany was very upbeat today, where the ZEW economic sentiment rose to 20.4 in January, up from 17.4 and above expectation of 17.9, while the current situation gauge rose to 95.2, up from 89.3 and above expectation of 89.5, hitting a record high. The EU ZEW economic sentiment rose to 31.8, up from 29.0, also beating expectations of 29.7.

The focus on Wednesday will be on the EU/US Flash Manufacturing/Services/Composite PMIs and the US Existing Home Sales although most traders will be looking towards tomorrow’s ECB Meeting. The UK Unemployment figures are also due today (exp 4.3% headline rate, Claimant Count Change +5.4K).  Oil traders will look out for the EIA Crude Oil Stocks Weekly Change, with a large drawdown likely to take WTI above 65.00 pb. Have a good day.

CURRENCIES
EURUSD: 1.2296
Res  1.2305  1.2325  1.2345
Sup  1.2270  1.2245  1.2220
USDJPY: 110.32
Res  110.55  110.85  111.20
Sup  110.20  110.00  109.55
GBPUSD: 1.3999
Res  1.4030  1.4050  1.4085
Sup  1.3975  1.3945  1.3915
USDCHF: 0.9578
Res  0.9600  0.9630  0.9650
Sup  0.9565  0.9535  0.9500
AUDUSD: 0.8001
Res  0.8015  0.8030  0.8040
Sup  0.7975  0.7955  0.7940
NZDUSD: 0.7356
Res  0.7365  0.7385  0.7400
Sup  0.7335  0.7305  0.7270
INDICES / COMMODITIES
S&P: 2839
Res  2845  2850  2855
Sup  2835  2830  2825
DJI: 26196
Res  26240  26310  26350
Sup  26145  26095  26025
ASX SPI: 6004
Res  6005  6020  6030
Sup  5990  5970  5955
XAUUSD: 1341
Res  1345  1350  1355
Sup  1335  1330  1325
XAGUSD: 17.04
Res  17.10  17.20  17.35
Sup  16.95  16.85  16.75
WTI: 64.75
Res  65.00  65.50  66.00
Sup  64.20  63.70  63.05