Today on focus is the meeting between Greece Prime Minister Antonis Samaras and Jean-Claude Juncker. At the same time, Chancellor Angela Merkel hosts President Francois Hollande today as officials look for ways to stave off an immediate crisis after a report due next month from Greece’s international creditors on the health of its finances. The Germany economy expanded in the second quarter of the year albeit at a slower pace than the first quarter as the debt crisis resurfaced to pressure growth. The final GDP estimate for the second quarter on Thursday was unrevised and in line with expectations at 0.3%. Now German DAX is trading around 7070, French CAC around 3485 and U.K. FTSE is around 5795 level.
Before the release of the Chinese data investors were quietly hopping for a 50+ figure, signaling China’s manufacturing sector is on a path to recovery. Instead, the flash PMI figure dropped to its lowest level this year, 47.3, sparking speculation the Chinese government will do more to boost domestic demand. The headlines are suggesting the government may cut interest rates and/or the RRR soon. Japan’s Nikkei edged up 0.4% in the afternoon session and TOPIX 500 is trading around 593.
On Wednesday, Euro/Dollar increased with almost 115 pips on FED minutes. The European currency appreciated from 1.2429 to 1.2543 yesterday. A break of last level could lead the prices to new highs. The first target could be set around 1.2630. On downside, below 1.2485 minor support will turn bias neutral and bring consolidations. Retreat should be contained above 1.2380 support and bring another up movement.
S&P 500 reached to 1416 and now is trading in tight range around this level. Trend continues to be bullish with first resistance at topped high in Monday 1424. On the downside, the first support is projected at 1390, followed by 1380 and 1355. On the upside, crucial for continuing the uptrend is 1424.50. Break there could lead the price to new historical levels. Most of binary option traders are continuing to buy “call” options.
The German index made test of psychological level around 7000 yesterday. The corrective pattern is may be finished and today we could see new highs above border of 7100. The first intraday resistance is around 7085 followed by highest 7105. On the downs,ide crucial for bulls are levels around 6920 and 6885. A clear break and daily close below 6885 would switch movement to neutral.
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.