24 Nov: Euro underpinned by solid PMIs. WTI making gains too. German IFO in focus, Friday. UK PM May in Brussels

By | November 24, 2017

 

The US$ remains under pressure heading into the weekend, with the Euro remaining underpinned after a strong series of  EU PMI readings, with the EU PMI manufacturing rising  to 60.0 in November, up from 58.5 and above expectation of 58.2. The EU PMI services rose to 56.2, up from 55.0, above expectation of 55.2 while the German PMI manufacturing rose to 62.5, up from 60.6 and above expectation of 60.3. Germany PMI services rose slightly to 54.9, up from 54.7, missed expectation of 55.0. France PMI manufacturing rose to 57.5, up from 56.1, beat expectation of 55.9. France PMI services rose to 60.2, up from 57.3 and beat expectation of 57.0. The other markets have been pretty quiet due to the US holiday with the exception of WTI, which again made gains to new 2 year highs. A draft agenda for the OPEC meeting on November 30 in Vienna has been given just a three hour time frame for oil ministers to decide whether to extend their oil supply curbs, indicating that the decision-making process is expected to run smoothly.

The quiet conditions may well continue on Friday with just the Japan Nikkei Mfg PMI and the German IFO Business Climate/Expectations to excite traders today, along with a couple of ECB speakers (Constancio/Coeure). The US  PMIs will also be released although traders will mostly be occupied elsewhere and liquidity/interest will be very thin. Note that UK PM, Theresa May will be in Brussels today, and Sterling traders will look to see if any solid divorce plan is likely, with the possibility of the UK raising the amount of funds it is prepared to pay as re-compensation for the separation. The NZ Trade Balance is coming up shortly and may create some waves for the Kiwi (exp -$750 mio). Have a good weekend.

CURRENCIES
EURUSD: 1.1852
Res  1.1860  1.1880  1.1900
Sup  1.1835  1.1815  1.1795
USDJPY: 111.22
Res  111.50  111.70  112.00
Sup  111.05  110.60  110.30
GBPUSD: 1.3307
Res  1.3335  1.3375  1.3415
Sup  1.3280  1.3240  1.3210
USDCHF: 0.9814
Res  0.9830  0.9850  0.9885
Sup  0.9795  0.9775  0.9750
AUDUSD: 0.7625
Res  0.7635  0.7650  0.7665
Sup  0.7615  0.7600  0.7585
NZDUSD: 0.6889
Res  0.6905  0.6955  0.6920
Sup  0.6865  0.6850  0.6820
INDICES / COMMODITIES
S&P: 2597
Res  2600  2605  2610
Sup  2590  2585  2580
DJI: 23497
Res  23550  23600  23700
Sup  23475  23430  23370
ASX SPI: 5982
Res  5995  6015  6045
Sup  5975  5950  5920
XAUUSD: 1291
Res  1295  1300  1305
Sup  1285  1280  1275
XAGUSD: 17.08
Res  17.20  17.30  17.40
Sup  17.00  16.90  16.80
WTI: 58.53
Res  58.60  59.60  60.50
Sup  57.70  56.95  56.30

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