FXstreet.com (Barcelona) - While other risky assets like Aussie, oil, or some local share markets like Nikkei index, are at session highs, EUR/USD, which at some point was leading the way higher, is now at 1.2128, 10 pips below session highs. Initially dropping from NY session highs around the 1.2140 to session lows at 1.2107 following Moody's outlook change to negative for Germany and other core euro zone sovereigns, the pair managed to recover, trading within mentioned range for the rest of the session. Hong-Kong has been closed so far due to a typhoon that is hitting the city.
London session ahead brings plenty of EU PMI figures starting at 07:00 GMT with French ones, followed by Germany 30 minutes later, and EU flash manufacturing and services PMI at 08:00 GMT. But probably all eyes will be on Spanish sovereign short term deb auction selling 3-6 month bills, given yesterday the 10 year yields printed a record euro era high above 7.5%, and the risk premium with Germany skyrocketed around the 640 basic points. The Netherlands will also try to sell up to € 2.5 B in debt following yesterday's Moody's action.
Immediate support to the downside for EUR/USD shows at recent session lows and June 01 2010 lows at 1.2107, followed by yesterday's and fresh 2 year lows at 1.2066, and April 03 2006 lows at 1.2028. For the upside, nearest term resistance comes at yesterday's highs/Friday's lows 1.2145, followed by unfilled opening weekly gap at 1.2160, and July 16 lows at 1.2175.
London session ahead brings plenty of EU PMI figures starting at 07:00 GMT with French ones, followed by Germany 30 minutes later, and EU flash manufacturing and services PMI at 08:00 GMT. But probably all eyes will be on Spanish sovereign short term deb auction selling 3-6 month bills, given yesterday the 10 year yields printed a record euro era high above 7.5%, and the risk premium with Germany skyrocketed around the 640 basic points. The Netherlands will also try to sell up to € 2.5 B in debt following yesterday's Moody's action.
Immediate support to the downside for EUR/USD shows at recent session lows and June 01 2010 lows at 1.2107, followed by yesterday's and fresh 2 year lows at 1.2066, and April 03 2006 lows at 1.2028. For the upside, nearest term resistance comes at yesterday's highs/Friday's lows 1.2145, followed by unfilled opening weekly gap at 1.2160, and July 16 lows at 1.2175.
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