Market Overview by FXCC July 2 2012

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[b]Market Overview by FXCC July 2 2012

Chinese PMI disappoints

U.S. stocks soared on Friday, and all three indexes closed out the first half of 2012 up more than 5%. NASDAQ has etched double-digit gains. Dow Jones closed the day up 278 points, or 2.2%. S&P 500 gained 33 points, or 2.5%. Nasdaq added 86 points, or 3%. A deal among European leaders to help struggling eurozone banks buoyed global markets Friday, at least temporarily erasing investors' looming fears over the viability of the eurozone. While stocks have clocked broad gains for the year, all three indexes closed out the second quarter below first quarter highs. Fears over Europe pushed stocks down nearly 10% in early June. Still, on Friday, investors looked solely at what was accomplished at the two-day European Union summit in Brussels. European leaders struck a "breakthrough" deal early Friday aimed at easing the recapitalization of banks. The European markets surged after European leaders agreed to the recapitalization plan and a tighter union. Britain's FTSE added 2%, DAX in Germany jumped 3.5% and France's CAC 40 rallied 3.8%.

Except for Shanghai, which trades marginally lower by 0.2%, all the other Asian indices are trading in the green. Nikkei & Strait Times are up by 0.1% & 0.5% respectively, while Taiwan is up by 0.4%. Kospi is trading on a flat note. Among the metals, Aluminum lost 0.3% while Copper gained the most (2.4%). Zinc and Nickel rose by 2.2% and 0.2% respectively. Oil for August delivery rose $7.27 to $84.96 a barrel. Gold futures for August delivery as high as $53.8 to $1,604.2 an ounce Coming up this week, the US will celebrates their Independence Day holiday in the middle of the week but the trading week will still have some important headlines, including a European Central Bank meeting and U.S. unemployment data. There will be an ECB rate announcement where expectations are of a 0.25% cut to a record low 0.75%., German and Spanish industrial production and airlines release traffic numbers.
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UPCOMING EVENTS :
2012-07-02 08:00 GMT | EMU - Markit Manufacturing PMI
2012-07-02 08:28 GMT | UK - Markit Manufacturing PMI
2012-07-02 09:00 GMT | EMU - Unemployment Rate (May)
2012-07-02 14:00 GMT | US - ISM Manufacturing PMI (Jun)

FOREX NEWS :
2012-07-02 04:45 GMT | GBP/USD consolidates around 1.5660
2012-07-02 04:19 GMT | BoE will ease more than expected, stay wary on Cable - UBS
2012-07-02 03:46 GMT | Probability to re-price RBNZ rate cuts - BNZ
2012-07-02 03:10 GMT | AUD/NZD down with regional PMI readings

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EURUSD : 1.26251 / 1.26255
DAILY WEEKLY MONTHLY



1.2723 | 1.2696 | 1.2671
1.2621 | 1.2586 | 1.2561

SUMMARY : Neutral
TREND : Sideway
MA10 : Bullish
MA20 : Bullish
STOCHASTIC : Neutral


MARKET ANALYSIS - Intraday Analysis

EUR/USD opened the week with bearish momentum, off from a high of 1.2676. The pair was likely to find support at 1.2408, Thursday