It is a busy start to the week in Europe, with plenty of follow-through from the weekend as markets ponder the outcome of the votes in both Austria and Italy. Later in the day, ECB President Mario Draghi and Executive Board member Benoit Coeure participate in Euro group meeting, in Brussels, with Greece a key topic of discussion. In the UK, the Supreme Court begins the Government's appeal on triggering A50. The hearing is expected to last 4 days, with a judgement in early January. The European data calendar gets underway at 08:00 GMT, with the publication of the Spanish industrial production data. The euro area final November services/composite PMI data is expected from 08:15 GMT, when the Spanish data is released. Italian PMI is due at 08:45 GMT, France at 08:50 GMT, Germany at 08:55 GMT and the combined euro area data at 09:00 GMT. Also due at 08:30 GMT is the euro area Sentix Economic Index.
The recovery from Monday’s low now saw the pair pop above the 100-WMA Wednesday but hesitation ahead of ¥114.72-87 is a concern for bulls when combined with daily studies at very O/B levels. Bulls continue to look for a close above ¥114.21 resistance to see pressure remain on ¥114.72-87 with a break above reconfirming the bullish bias and targeting ¥115.96. While ¥114.87 caps bears initially target ¥111.35.
GOLD: Spot gold last down $4.65 at $1,172.80 per ounce, in a $1,188.20 to $1,1171.70 range so far this morning in Asia, the market trading lower as the Euro plunged in wake of Italy rejecting PM Renzi's referendum and hence leading to his resignation. However, despite the Euro recovering from its session lows and the risks Italy's banking sector on the rise post the vote, Gold continues to languish at its session lows.
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