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2013-07-24 03:52 GMT
China sets 7% growth as bottom line, eyes fresh stimulus
Chinese Premier Li Keqiang provided a juicy headline during Tuesday, suggesting the country may have to rethink its 'non-stimulatory' monetary policies should the economic growth fall below 7%, according to local media reports.
Mr Li said that 7% is seen as the 'bottom line', and if target not met, there will be other options on the table as the government cannot afford the growth rate to deteriorate further, Xinhua News Agency reported.
According to Beijing News, Mr. Li added: "As long as the economic growth rate, employment and other indicators don't slip below our lower limit and inflation doesn't exceed our upper limit we'll focus on restructuring and pushing reforms."
As Ambrose Evans-Pritchard from the Telegraph notes: "Mr Li's comments suggest a major shift in policy by Beijing, which has deliberately engineered a slow-down over recent months by squeezing credit. The government has been rattled by upheavals in the interbank market and has begun to heed warnings that the crackdown has gone too far."
The U.S. dollar continued to trade lower against all of the major currencies today on the back of weaker than expected economic data. While the house price index increased in the month of May, the rise fell short of market expectations. The Richmond Fed manufacturing index fell sharply in the month of July, catching the market by surprise. After the solid improvement in NY and Philadelphia manufacturing conditions, economists had been looking for the Richmond Fed index to rise to 9 from 7. Instead the index fell to a one year low of -11 on the back of weaker sales and orders. The Richmond Fed manufacturing index may not be a closely followed report but with such a big disappointment, it is no surprise that the dollar extended losses. At the beginning of the trading day, the Dow Jones Industrial Average and S&P 500 climbed to fresh record highs but concerns about earnings and today's weaker reports drove the S&P 500 back into negative territory. New home sales are scheduled for release tomorrow and the drop in existing home sales points to a weaker release that could compound the sell-off in the greenback. -FXstreet.com
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2013-07-24 07:58 GMT
EMU. Markit Manufacturing PMI
2013-07-24 12:58 GMT
USA. Markit Manufacturing PMI
2013-07-24 14:00 GMT
USA. New Home Sales
2013-07-24 21:00 GMT
New Zeland. RBNZ Interest Rate Decision
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2013-07-24 05:02 GMT
EUR/GBP shuffling sideways after Tuesday’s bounce ahead of Euro-data
2013-07-24 04:25 GMT
AUD/USD, 0.8870/0.8770 next important target - JPMorgan
2013-07-24 04:11 GMT
GBP/USD slips after Chinese data. Overbought correction starting?
2013-07-24 03:07 GMT
USD/JPY proving 99.50 as strong support
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EURUSD
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HIGH
1.32267
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LOW
1.31986
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BID
1.32055
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ASK
1.32060
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CHANGE
-0.14%
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TIME
08:39:11
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OUTLOOK SUMMARY
Up
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TREND CONDITION
Up
trend
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TRADERS SENTIMENT
Bearish
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IMPLIED VOLATILITY
Medium
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MARKET ANALYSIS - Intraday Analysis
Upwards scenario: Despite the price is tested negative territory today further market strengthening is possible. Clearance of our next resistance level at 1.3230 (R1) would suggest next initial targets at 1.3248 (R2) and 1.3264 (R3).
Downwards scenario: On the downside we put our attention to the next support level at 1.3197 (S1). Loss here is required to push the price towards to our next interim targets at 1.3180 (S2) en route towards to final support at 1.3162 (S3)
Resistance Levels: 1.3230, 1.3248, 1.3264
Support Levels: 1.3197, 1.3180, 1.3162
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GBPUSD
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HIGH
1.53782
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LOW
1.5352
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BID
1.53581
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ASK
1.53585
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CHANGE
-0.07%
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TIME
08:39:11
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OUTLOOK SUMMARY
Up
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TREND CONDITION
Sideway
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TRADERS SENTIMENT
Bullish
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IMPLIED VOLATILITY
Medium
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Upwards scenario: Volatility increase on the upside is required to push the price through key resistive measure at 1.5385 (R1). In such scenario we would suggest next targets at 1.5406 (R2) and 1.5427 (R3).
Downwards scenario: Negative developments might be settled below the important support level at 1.5345 (S1). Any price action below it would then be targeting support level at 1.5326 (S2) and then final target could be exposed at 1.5305 (S3).
Resistance Levels: 1.5385, 1.5406, 1.5427
Support Levels: 1.5345, 1.5326, 1.5305
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USDJPY
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HIGH
99.8
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LOW
99.384
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BID
99.711
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ASK
99.713
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CHANGE
0.3%
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TIME
08:39:12
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OUTLOOK SUMMARY
Down
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TREND CONDITION
Upward
penetration
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TRADERS SENTIMENT
Bearish
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IMPLIED VOLATILITY
Medium
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Upwards scenario: Immediate resistance at 99.81 (R1) remains in near-term focus, climb above this level might open way for a recovery action towards to next interim target at 99.93 (R2) and any further rise would then be limited to final resistive measure at 100.06 (R3)
Downwards scenario: Clearance of our next support level at 99.59 (S1) is required to enable further trend evolvement on a slightly longer term perspective. Our support levels locates today at 99.46 (S2) and 99.33 (S3).
Resistance Levels: 99.81, 99.93, 100.06
Support Levels: 99.59, 99.46, 99.33
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