Breakfast Brief

Good Morning Traders....
We are coming to you a bit later this morning due to the heavy data flow from the Eurozone this morning, we felt it would be more beneficial to to bring the morning brief to you on the back of the Eurozone PMI data as these figures would inevitably set the tone for today's trading.
Overall PMI's were relatively positive for the euro, showing that there has been a slight month on month improvement in manufacturing within the member states. Initially we witnessed a slight move to the upside in the euro but this has been since eradicated and we are back trading around the unchanged level. The EURUSD topped out at 1.30750 and the EURJPY touched the downward trend-line at 121.750. Traders will be keeping a close eye on any statements released from the EU finance ministers meeting which takes place in Brussels today. We will be hoping to see some further development on the loan easing process for Ireland and Portugal. Irish finance ministers will be seeking backing for rules on bank capital requirements that include bonus curbs. However things are set to be relatively quiet in the European markets until the ECB press conference on Thursday, having said that any developments regarding the Italian election should prove as a genuine trading opportunity.
One of the most interesting things to take from this morning session so far has been the stronger than expected UK PMI services data which we saw at 9.30am. Yesterday we saw worse than expected UK PMI manufacturing data, so traders will be taking note of the divergence between the manufacturing and services sector for forward economic outlooks. The USDGBP (Cable) pair has found support from its 1.50 low and is currently trading around the 1.517 handle, suggesting traders have have been aware of the divergence and it was a case of buying the rumour throughout the Asian session and the early part of the European session.
Across the water we have seen a 'Bullish' close in the US equity market yesterday which would suggest that we may seen a further move to the upside today and throughout the course of the week. As you know we are sceptable of the continued move to the upside and we do feel that a correction is not far away within the equity markets. However picking a top can be a dangerous game so we would advise to keep money on the sidelines unless you have bought US equities at decent levels (SPX: 1495-1515).
For all of the individuals trading Apple shares things do not look to positive, we were hoping for the stock to find support at $425 and a close above this level may have given an opportunity to get long however it failed to do so, so we continue to remain bearish on the stock until it can find a clear and decisive bottom and a genuine buying opportunity.

Any questions find us at @lowkeycapital