Asia Monday should be quiet but can Euro bounce?

July 7, 2014

Take it easy today I reckon – rug up go for a walk on the beach. Let your positions, entries and the stops associated with them  look after themselves.

Monday Asia is fraught enough without Monday Asia with no US lead from Friday.

Of course nothing could happen but then again if someone wants to push an asset price around today is the perfect day.

Having said that though we should start off this week the way we finished the last with a general air of positivity in markets.

Looking back to Friday and we see that Europe’s day wasn’t great though for stock traders or Euro bulls with shares in Milan down 1.49%, while those in Madrid fell 0.73%. The CAC dropped 0.47% to 4,469 while the DAX slipped 0.2% lower but still above 10,000 finishing at 10,009.

On the data front in Europe German factory orders missed by a long way printing down 1.7% after last months 3.4% rise.

A rally before more weakness?

Locally though the September SPI 200 contract rose 13 points to 5493 bid. Today is likely to be a rangy day as the market awaits a fresh offshore catalyst and some very important local data later this week.

More upside potential!

– In Asia on Friday the weakness in the the Yen helped the Nikkei rally but it was off its highs to close up 89 points or 0.58% to 15,437. The Hang Seng barely moved and stocks in Shanghai were down 0.2% to 2059. There is only one vaguely important piece of data today in Asia with the release of the Japanese coincident index.

On currency markets Euro opens the week at 1.2596 after 4 days of weakness but Sterling is still strong with GBPUSD sitting at 1.7161. USDJPY is back above 102 at 102.07 and the Aussie is off Friday’s lows at 0.9362.

It’s hard to make money in FX at the moment given the low volatility. But at times like these it is okay to do nothing – that’s just the way the market is.

Remember always – trade the market in front of you.

Equally while the US dollar moves are boring the crosses are not.

On commodity markets iron ore barely moved for a change with September delivery 62% Fe down just 16 cents to $96.42 tonne. Newcastle coal was stable at $70.50 tonne. Crude for July sits at $103.77, gold is at $1,320 oz and silver is sitting at $21.16 oz. Dr copper hasn’t changed but is still strong at $3.26 lb while on the Ags US pits were closed.

On the data front today we get AiG performance of construction and ANZ job ads for Australia before industrial production data in Germany. Its a quiet one.

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