Forex Analysis
USD Mid-day Analysis
The Dollar might have gotten a little ahead of itself with the peak yesterday as sagging US corporatesales guidance and impressive UK employment news temporarily undermines the total bullish rule of the Dollar.
Central European Daily
Monetary easing to be continued in Hungary The National Bank of Hungary moderated base rate by 15bp from 3% to 2.85% on Tuesday.
Buyout blitz
This year could witness the return of M&A mania. Appetites were whetted bylast week’s ‘Merger Monday’, which saw circa USD 100bn of announced deals.
The Global Macro Pulse
AUD has been the big mover so far, rallying 0.7% to 0.886 following a much stronger than expected inflation report. This pushed AUDNZD higher to 1.0656.
FX Daily
It will be another quiet day in terms of data. The UK releases its unemployment report at 10:30 CET and we look for a further decline in unemployment to 7.2% in November from 7.4% in October.
GBP/USD Analysis
The pair closed in NY Tuesday at $1.6477 after rate performed an impressive recovery off pressured lows of $1.6400 to $1.6487 into the US session.
EUR/USD Analysis
The pair started in Asia this morning at $1.3561 after a $1.3522 to $1.3570 range overnight in the US. It saw a slow start to the session, confined to a narrow $1.3555 to $1.3565 range in the early hours.
AUD/USD Analysis
Aussie was the standout performer in the Asia-Pacific timezone today as it reacted strongly to a higher-than-expected Q4 CPI number.
USD/JPY Analysis
The session began with the market focused on today’s BOJ decision after its 2-day meeting but the as-expected outcome caused barely a reaction in the FX market.
Economy Watch – CPI…Post Script
Further to yesterday’s commentary around the Q4 CPI, we have decided to revise up our forecast of Q1 inflation, and iron out our quarterly track further out.
USDJPY – wave-c expected to meet extension targets between 105.14/83
The pullback from 104.92-103.86 reached a cluster of Fibonacci retracements expected to halt the decline. Now prices are rallying towards extension objectives between 105.14/93 to complete wave-B in a large range-bound correction.
EUR Mid-day Analysis
Undermining the Euro this morning is somewhat slack German ZEW January expectation readings. TheEuro is also seemingly indirectly under residual pressure from wide held expectations for the Fed to