01 may 2012 analyst 13: 30 GMT Talking Points
Euro: Threat descending Spain, Triangle Bond Auction in Focus of Sterling: United Kingdom manufacturing Cools, RSI Falls Back From surachat Dollar: ISM manufacturing on tap, looking at the employment component Euro: threat descending Spain, Triangle Bond Auction In Focus
The Euro soared to a weekly maximum charge of the 1.3277, even as most of Europe and Asia was offline on Tuesday and the rebound may gather pace during the holiday as the pair trade threat bearish formation from earlier this year. However, as the Spain is scheduled for the auction of three and five-year debt on Thursday could be the entering consolidate into the middle of the week, and the results are likely to strengthen a bearish perspective to the single currency as the periphery countries continue to face costs of public finance.
During this time, Chairman of the Group Euro-Jean-Claude Juncker announced that he will leave his post as European policy makers strive to meet on common ground and the current rift in the European Union presents a bearish for the EURUSD perspective, as Governments under the single currency become more and more dependent on monetary support. As the sovereign debt crisis continues to increase the risk of a prolonged recession, we expect to see the European Central Bank to do its cycle of relaxation through 2012 and the Board of Governors may look to target the reference interest rate as the non-standard measures have a limited impact addressing the risks surrounding the area. Although the EURUSD threatens bearish formation from earlier this year, we will maintain our appeal for the pair seems to be carving a high low just below 1.3300, and interim support around 1.3000 should finally give as price action continues to approach the apex of the triangle down.
Pound sterling: United Kingdom manufacturing Cools, RSI Falls Back From Overbought
The pound slipped to a minimum of 1.6190 the United Kingdom manufacturing increased at the slowest pace since December, and the GBPUSD may continue to consolidate in the week, as the economic record is expected to show a slowdown of recovery in the region. As the strength relative index surachat, the pound sterling-dollar territory particularly may have carved out a high court in may, but bull sentiment emphasizing the sterling should gather pace throughout 2012 as the Bank of England reduced its dovish tone for monetary policy. As the GBPUSD maintains the trend since the beginning of this year, we are looking for high costs in the exchange rate and the sterling may exceed in the short term that the Central Bank is similar to conclude the cycle of relaxation.
US dollar: ISM manufacturing on tap, look at the employment component
The greenback has continued to gain ground on Tuesday, with the Dow Jones - FXCM U.S. Dollar Index (Ticker: USDOLLAR) rally at a maximum of 9 863, but the reserve currency may come under pressure during the trade in North America as the economic record is expected to strengthen a vision impaired for the United States. The Manufacturing ISM index should fall the previous month to 53.0 in April of 53.4, the slower pace of production could renew speculation for a new round of quantitative easing, but we will keep a watchful eye on the employment component as non-agricultural earnings highly anticipated report are due Friday. However, as risk trends continue to dictate the action in the foreign exchange market prices, decreased sense of market could support the USD, and risk taking behaviour change can gather pace in the coming days if the prospects for global growth deteriorates.
