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Fundamental Archives |
Written by Saxo Bank |
Sep 03 10 08:35 GMT
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It's Magic Whippy Day
It's that magical time again, the first Friday of the month, which we all know brings the euphoria that is NFP! Couple this with the fact that Monday is a US holiday (Labor day) and you might get an understanding of how this afternoon is going to play out.
Understandably markets overnight were less than spectacular with regard price action and most crosses remained heavily sidelined in thin liquidity, subdued volumes and tight ranges. Surprisingly (or at least to me) equities were higher and closed strongly in the US, with the futures trading at the high end of the most recent range. Given what today is all about I will not even attempt to guess where and how this market is likely to play out.
I will, however, report the facts, which means that on the data calendar outside of the obvious marquee event we also have UK Services PMI and Euro zone retail sales over the course of the morning.
All in all I would think that the offers in EURUSD today sitting around the 1.2835/45 level will get hoovered and the stops that are placed above the 1.2850/55 level will also get taken, causing a spike into the 1.2900's, and 1.2930 remains a level that many in the market are talking about with sizeable offers sitting up there. Long and strong is how Tom is placed, however he remains fickle with tight stops in a market that is going to get very choppy as he and his mates start squaring positions around lunch time ahead of the long weekend.
Cable isn't likely to fare too well today especially in light of the above mentioned data due out this morning. However, as noted yesterday, while the 1.5350 level holds as ugly as it might be this cross still looks relatively constructive.
Elsewhere folks just strap yourselves in for what (as usual) is likely to be whip city! |
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