Good afternoon Traders. We didn't have time for a Breakfast report this morning due to a highly volatile market fuelled from the BOJ's monetary policy decision last night and a number of rumours that were circulating Europe. The overnight conclusion of the BOJ's meeting and announcement of further Asset Purchasing caused a "buy the rumour swell the fact" move, with USD/JPY pulling back from its highs of 90.169 to eventually find support at 88.36. EUR/JPY initially spiked through the 1.20 handle but sold off considerably once Europe entered the market this morning. Rumours circulated about the resignation of ECB's Weidmann and German bank's profit warnings, with Deutsche's shares off by almost 3% mid morning. The EUR/USD sold off from 1.337 to 1.3266 in an aggressive manner before finding support. It followed the rapid decline of the DAX, at one stage off by 120 points. The spanner in the works was the release of the German ZEW Business sentiment at 10 a.m. which came in at a whopping 31.5 up from 6.9 in December and destroying Reuters estimates. This changed the mood to risk on immediately with the DAX recovering almost 100 points and the EUR/USD recovering almost 80 pips to sit at 1.3334 as I type now.
Levels to look at this afternoon are 1.34 EUR/USD topside and 1.326-8 on the downside, this has proved solid support. On the S&P 500 1474 is a solid bottom and topside 1491 may contain a breakout for now.
Google earnings are released tonight so a lot of traders may be waiting to see how they get on before taking a position for the rest of the week. On another note, just as I have typed this last paragraph UBS have downgraded Apple's outlook! So look at the Nasdaq to open down. Happy Trading!!
Lowkey
No comments:
Post a Comment