Eurozone CPI inflation stands at 2.5%

Posted on Wednesday, August 31st, 2011 at 7:29 pm in Market View by superadmin.

Worldwide currencies to look out for

Eurozone CPI to show where inflation currently stands is released today at 10.00am and the markets are expecting the figure to remain inline with last months figure at 2.5%.
In the US this months figures for the ADP Employment change is released today at 1.15pm and is expected to fall to 105k from 114k last month.
, the last figure posted was 0.3% The Canadian government will be releasing Canada’s Q2 GDP at 1.30pm where they are hoping to see that move comfortably back over zero.
US Factory Orders for July is released at 3.00pm and Fed member Lockhart speech at 5.30pm finishes off the significant data for today.

ELSEWHERE

EUR strengthens against USD on the back of recent comments from Jean-Claude Trichet, pushing above the 1.44 level.
Further call for the Bank of Japan to correct its currency as the strength seen in the Yen is weighting heavily on export activities.
On 29th US pending home sales come through significantly below forecasts. Data posted show a negative 1.3% with expectations at a mere negative 0.8%.
New draft of Italy’s second austerity package envisages halving the number of parliamentarians
One Italian town has ditched the single currency in favour of minting its own coins – this comes on the back of renewed sentiment in favour of a euro bond to aid the Eurozone debt concerns.
The race to come up with a Eurobond proposal that avoids changes to EU treaties has begun.
Indian economy grew 7.7% in the three months from April to June.
The National Bank of Greece posts a €1.3bn loss.
US consumer confidence drops dramatically and the Fed minutes released yesterday reveal a difference in views of the members, however most are welcoming further QE whilst others.

IN THE UK

The UK market open saw sterling move a fraction higher than the previous weeks close on the back of market gains in the US and Europe. However the pound failed to hold on to the gains and hovered around the 1.1270 – 1.1310 range.
Net lending to individuals is down on expectations at negative 0.9bn, but up on previous month by 0.5bn.
Mortgage approvals in UK reach highest in 14 months during the month of July, but the property sector is suffering with average property price at £200k, but average earning at £25k, thus keeping first time buyers out of the market.
Bankers say put reforms on hold until markets and economy recover

Key Support and Resistance Levels
	Support			Resistance
GBPUSD	1.6207	1.6266	1.6337	1.6467	1.6526	1.6597
GBPEUR	1.1204	1.6337	1.1269	1.1334	1.1359	1.1399
EURUSD	1.4381	1.4423	1.4465	1.4549	1.4591	1.4633