Forex Analysis
GBP Mid-day Analysis
Seeing China tap on the brakes caught the Pound overvalued and technically overdone. Into theovernight high, the Pound was fully factoring positive Chinese lending data and ideas of less credit relatedheadwinds from China.
Central European Daily
NBH to cut rates to new all time low Czech government faces vote for confidence After Friday’s strengthening, CEE currencies remained calm on Monday.
Commerzbank: What Is Going On With This ‘Tenacious’ EUR?
“EUR-USD has fought its way to the area just above 1.3700. This illustrates once again to what extent the euro zone debt crisis is a thing of the past for the FX market,
Low Swedish inflation increases rate cut pressure
Swedish inflation data released this morning was lower than expected. CPI declined 1.2% m/m and 0.2% y/y in January, which is 0.3 percentage points below the Riksbanks forecast both on m/m and y/y numbers.
Trade for the century
Let’s forget about the next few weeks for a moment and think about the big picture.What is the market pricing for future FX rates? The first chart below looks at expectedcurrency moves over the next five years using forwards.
The Global Macro Pulse
USDJPY and the Nikkei rallied in response to the Bank of Japan extending and increasing the size of its subsidized loans to banks.
FX Daily
In the data calendar the main events are the ZEW indicator in Germany, CPI inthe UK and the NAHB housing market index and Empire.
FI Eye-Opener: Renzi’s ambitious timetable unlikely to hold
German bond yields edged slightly higher yesterday, but trading volumes were expectedly very subdued due to the US holiday.
GBP/USD Analysis
The pair closed Monday’s US/Canada holiday thinned session at $1.6713 after rate had slowly pared earlier Asian gains to $1.6823 to $1.6694 through a subdued trading day.
EUR/USD Analysis
The pair started this morning at $1.3707 and with lack of leads from the US holiday overnight, spent the early hours of the session drifting between $1.3700 and $1.3710.
AUD/USD Analysis
Aussie opened at $0.9032 this morning and spent the early part of the morning in a narrow $0.9030 to $0.9043 range as the market waited for the release of the RBA minutes.
USD/JPY Analysis
The pair started the session at Y101.93 after a subdued overnight session marked by the President’s Day holiday in the US. Early demand from Japanese names lifted the pair back through Y102.00 but