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CentroFX 22112016 0

 

What will happen after Italian banking shares are in hardship?


It is a quiet start to the week, with little on the calendar in either the US or European session.The first expected release in Europe comes at 09:00 GMT, when ECB Government Council member Ewald Nowotny speech on the OENB overall economic forecast for Austria from 2016 till 2019, in Vienna. Markets will obviously be watching closely to see if Nowotny expands on last week's policy decision. At 14:40 GMT, the ECB will call for bids on the latest 7-day MRO, before publishing this week's PSPP bond-buying data at 14:50 GMT.

Across the Atlantic, the US calendar gets underway at 16:00 GMT, with the publication of the NY Fed survey of consumer expectations. In the UK, at 16:15 GMT, UK Chancellor Philip Hammond appears before TSC, answering questions on the Autumn Statement. The US Treasury Budget will be published at 19:00 GMT. The U.S. Treasury is expected to post a $95.0 billion budget deficit in November, larger than the $64.5 billion gap in November 2015,while some transfer payments were pushed into October.

 

Technical Overview

Bears remain firmly focused on the $1.0465-99 support region where 2015 & 2016 lows are located. Bears need a close below $1.0462 to shift focus to breaks of the $1.0000 level that will initially target $0.9850-80. Layers of resistance are continuing to build with bulls now needing a close above $1.0635 to ease immediate bearish pressure and above $1.0696 to hint at a correction back to $1.0874-88 where the 55-DMA is located.

Spot Gold last down $3.10 at $1,156.75 per ounce, in a $1,159.80 to $1,156.55 range so far this morning in Asia, with the market under pressure from higher crude oil, US Dollar and treasury yields. Commerzbank notes that "the environment for gold remains difficult for now, as can be seen from the outflows from Gold ETFs that continued for the 20th day in a row yesterday - 164 tons have now been sold since 10 November". They write "Gold is currently experiencing headwind from the other side of the Atlantic in particular".

 

Sourcewww.centrofx.com

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