European Open: Eur & Kiwi still weak

Asian equities had a neutral session overnight, despite a strong New York session and a positive beat on Chinese Caixin PMI. There is a price/sentiment divergence here and today might see some chop or retracement.

The Euro remains weak after Draghi confirmed the ECB’s easing bias, and I like EurGbp shorts as the GBP continues to remain resilient. EurAud shorts are also still interesting although caution is required here at last week’s/last month’s low. Aud is also looking strong vs. Nzd after the bird fell sharply on the back of lower dairy prices and weak labor market numbers.

Today we have UK services PMI, which will attract much interest after the big upside surprise in the manufacturing data on Monday. This afternoon we will also see the final clues on Friday’s US payrolls release with the ADP report and ISM non-manufacturing survey both due.

Finally, don’t forget FedSpeak today: at 10:30 GMT Fed Governor Brainard speaks, then at 13.00 GMT Philadelphia Fed President Harker speaks, at 15:00 GMT Fed Chair Yellen testifies on bank regulation and at 19:30 GMT New York Fed President Dudley speaks.

Charts for Today:




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