EUR 9.28 For Business Accounts Only

The Morning Track deals-2

- The Morning Track – Deals by Bob Savage
http://track.com/articles/the-morning-track-deals-2/

While few expected much from Congress, many will find some solace in their apparent bipartisan deal to fund the government with $1.1trillion in new spending through September. Talk of this was sufficient given the May Day holidays to matter to markets and lift the USD. Sunday also brought another political deal as the former Italian PM Renzi won the Democratic Party leadership with over 60% of the vote. Renzi noted, “Yes, we want to change Europe, we say it with humility and responsibility. We are not against Europe, we want a Europe that is able to represent its citizens, otherwise the alternative is populism," – all of which likely means no election this year given that the Populist 5-Star movement leads in the polls. Of course, the other weekend news about politics – the hit and miss swing of North Korea on another missile launch leaves it clear that geopolitical issues aren’t going away. The hard data was softer – with China PMI troubling but not enough to un
do the Japan or Australian PMI strength. This leaves the US market fixed on PCE and whether the consumer in the US is on holiday as well. The EUR/JPY has become the measure of risk and 122.20 is the trend line to watch for the bulls while 120.64 is the 100-day support. The trouble is this cross has Europe out today and Japan for most of the rest of the week – making it all the noisier for guidance.