Forex Analysis

USDJPY – target zone hit. Correction can meet strong 102 resistance

Prices are rallying from yesterday’s proposed target zone. The sell-off from the triangle completed a clean 5-wave decline and produced a double bottom at 100.76.

EUR Mid-day Analysis

The Euro has found some support on the charts above the 1.3479 level and that isn’t surprising when oneconsiders that Euro zone data has come in relatively better than data from the US recently.

CHF Mid-day Analysis

The Swiss has reversed course from the spike high forged in the prior trading session as overt anddominating anxiety levels have come down in the face of an attempt to recover in US equities.

BOJ comments overnight suggest that the Japanese economy is recovering and that Japan will be able tohit its 2% inflation target and that could underpin the Yen. However, with somewhat higher US equities and

USD Mid-day Analysis

The Dollar saw its dominance wane last week in the wake of discouraging data. The Dollar might comeunder further pressure in the event that US data remains weak this morning and

CAD Mid-day Analysis

The Canadian Dollar has surprisingly managed to bounce in the face of a noteddeterioration in global economic conditions. Perhaps the Canadian was oversold technically,

GBP Mid-day Analysis

Now that the correction has brought the Pound back to the lowest levels in nearly 2 1/2 months and thePound has shown the capacity to bounce, we have to think solid value has been found.

Central European Daily

Is this the end of bearish flattening of the Hungarian fixed-income yield curve? The Hungarian yield curve has flattened substantially in the last one week.

The Global Macro Pulse

FX price action has diverged from equities. AUDUSD has rallied 1.5% from its Asia open in response to the shift by the RBA to neutral from a bias to ease.

ECB Preview: Another refi rate cut

At the ECB meeting last month, Mario Draghi described two scenarios that would lead to action. We saw both of these triggers materialise in January. Therefore, we expect the ECB to ease again on Thursday.

FX Daily

In terms of data releases we have a fairly thin calendar today. In the euro area we expect Italian HICP to increase slightly but to remain below 1%.

EUR/USD Analysis

The pair spent a lackluster Asia-Pacific session drifting lower in a relatively narrow range. It opened at $1.3525 following a $1.3477 low traded during the overnight session.