MORNING BRIEFING: The EURUSD still stable between 1.4120 - 1.4290. A range of buyers stop orders above 1.4305.

[RTFX-Trading]

MORNING BRIEFING: The EURUSD still stable between 1.4120 - 1.4290. A range of buyer's stop orders above 1.4305.

What’s new?
United States: New home sales up 11% in June.
Germany: Zu Guttenberg sees signs of recovery.
France: Lagarde sees a tough situation in employment in the coming months.
France: Unemployment down for the first time in a year.
Euro Zone: Bank lending activity shows slight improvement.
Germany: Import prices up 0.40% in June.

Today:
12h00 United Kingdom: CBI Distributive Trades July, exp -12, previous -17.
15h00 United States: Case Shiller Home Price Index M/M May, exp -0.50%, previous –0.60%.
16h00 United States: Consumer Confidence Index July, exp 49.0, previous 49.3.
16h00 United States: Richmond Fed Index July, exp 8.0, previous 6.0.

Overnight Rates and Indices:
EURUSD: 1.4270 – 1.4219.
USDCHF: 1.0717 – 1.0686.
GBPUSD: 1.6524 – 1.6456.
EURJPY: 135.76 – 135.03.
USDJPY: 95.27 – 94.93.
DowJones: 9’108 +0.17%.
NASDAQ: 1’967 +0.10%.
S&P 500: 982 +0.30%.
Nikkei: 10’068 -0.20%.
Gold: $953.90.
Crude Oil: $68.42.
 
Comments:

In the United States, new home sales increased by 11% in June, the largest increase since December 2000. The housing stock has fallen to its lowest level in more than 11 years. These figures nourished the appetite for risk by investors. The AUDJPY is up from 77.20 to 78.92, the NZD JPY up from 61.90 to 62.75, the EURJPY at 135.75 from 134.20 and GBPJPY at 157.20 from 155.20. The Dollar is weakened by these signs of recovery and hope, down to 1.4270 against the Euro, 1.0685 against the Swiss franc and 1.6521 against the Pound Sterling.
   
The key point to watch closely is 1.4300 in EURUSD. We have noticed a range of buyer's stop orders above 1.4305, it appears that investors will take long positions in the medium-term if the EURUSD breaks this important level. The IMM futures market shows an increase in bearish Dollar contracts to 215,000, the highest since July 2008, indicating a bearish Dollar sentiment in the market.

Good Day and good trading.

Emman Xuereb
RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 23 31 00 00
Fax: +356 21 41 24 58
Web: www.rtfx.com

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