Euro flies on the success of the Bond Auction of Spain, the unemployed claim significantly improve
Euro flies on the success of the Bond Auction of Spain, the unemployed claim significantly improve
Euro surges against the dollar today, successfully using the bond auction in Spain and France. Spain sold all 3b Treasury Bond € 15, also known as the demand is known, the total of EUR 7.722b offers must bid-to-cover ration of 1.79 compared to April. The average yield was 5.116% which was higher than sales from April to 4.434% level, but less than 5.20% on the secondary market prior to the auction. In both cases, the French Treasury has sold € 8.395b in short-term paper due in 2012, 2013 and 2015 placed just below the maximum for $ 8.5B available. It also sells EUR 1.77b paper indexed to inflation, due in 2019 and 2022. Markets as a solid result of stress relaxation and offers financing up to €. EUR / USD breaks 1.28 level for the recent rally resumed later with other European headquarters.
Market sentiments today were a little weak, slow in front of China’s GDP expected to grow to 10.3% compared to Q2 QoY, while industrial production has slowed more than expected last year from 13.7% on-year in June, but again the feelings the auction of bonds in Spanish as well as solid earnings report from JPMorgan. In addition, applications for unemployment benefits declined in the U.S. by more than 429K expected, which may take another elevator. Additional data from the United States was published PPI dropped -0.5% MOM, rose by 2.8% year on year in June with the mother PPI 0.1% 1.1% over the same month last year. Empire State Manufacturing Index was extremely poor, which has significantly decreased from 19.57 to 5.08 in July. Industrial production rose by 0.1% in June
Call BoJ remains unchanged at 0.1% rd night unanimously as generally expected. Economic valuation has remained unchanged since the Bank noted that “Japan’s economy further signs of slight recovery, driven by improved economic conditions in exhibitions abroad.” The growth forecasts for current fiscal year, revised from 1.8% to 2.6%. But the growth forecast for next year, down from 2.0% to 1.9%.
Breaking strength of the dollar index 38.2% retracement of 74.19 to 88.70 83.15 in the event that fall freeze is 88.70 for the entire term increase of 74.19 correct one. Further decline should be supported on 80.04, the psychological level, almost 80, and 61.8% retracement is seen at 79.73. We remain bearish as long as the resistance is 84.56.
