Markets continue to look positive since last6 Friday’s EU summit decision to support the banking system. Currently investors are waiting this Thursday ECB monetary policy and rate decision, with expectation of a 25 to 50 basis points rate cut.
On the negative side the Barclays Libor fixing scandal has put more pressure on the already bitten banking sector, with increasing calls to tighter regulation on the financial industry.
Today is the 4th of July and trading is suppose to be light with lower volatility as market participants wait for the end of the U.S Holiday.
Today’s key fundamentals in focus:
9:00 Euro zone retail prices – fell sharply than expected
1:30 Australia trade balance.
Euro - Short term resistance at 1.2634 and support at 1.247. the euro is expected to trade within its midterm channel of 1.24 to 1.27, for the longer term we expect to test the 1.18 levels.
Short term trading - consider selling at 1.2612 and buy for short term expires at 1.257