Forex Analysis
USD/JPY Analysis
The pair opened at Y104.18 this morning after a hushed overnight US holiday session, which saw the pair mark a Y103.92 to Y104.22 range.
Markets Outlook – High TWI Fails to Suppress CPI Inflation
Even with today’s stronger than expected Q4 CPI, when we weigh everything up, we still come down on the side of the RBNZ having to adhere to its word, of leaving the start of its stimulus-removal campaign until its March Statement,
Central European Daily
Czech and Polish CA showed deficit in November On Friday, the Central European currencies barely moved.
The Global Macro Pulse
In FX, AUDUSD rose to 0.880 following the release of China’s GDP but has since given up its gains to trade back to Friday’s close around 0.878. Reports of a 6.3 magnitude earthquake near Wellington drove NZD lower initially,
EUR/USD Analysis
The pair opened at $1.3545 this morning in Asia and then followed euro-yen lower to a $1.3508 low less than 30 minutes after Japanese stocks opened in the red.
GBP/USD Analysis
The pair closed in NY Friday at $1.6424 after sterling had been a general boost earlier in the day on the release of stronger than forecast UK retail sales data.
AUD/USD Analysis
Aussie dipped in early trade to its $0.8757 low after opening at $0.8775 this morning, that move seen after a lower open in Japanese stocks.
USD/JPY Analysis
The pair opened at Y104.22 this morning and climbed in the pre-dawn Asian hours to a Y104.33 high and was then sold down in the early few hours.
FX Daily
The US markets are closed due to Martin Luther King day. With no significant data on the calendar either it is likely to be a quiet day.
Morning Report
Asian markets are mildly flower following release of a batch of Chinese data. Japanese Nikkei, Hong Kong HSI, Shanghai SSE and Singapore Strait Times are all trading in negative territory at the time of writing.
U.S. Dollar Higher on Taper Speculation
The dollar rose to its highest since November versus the euro amid speculation the Federal Reserve will continue reducing stimulus as the U.S. economy improves.
Weekly Forex & Interest Rate Outlook
Weak NZ inflation and housing data plus broad US dollar strength should hurt NZD/USD this week. NZ’s Q4 CPI release may alarm some with its low headline quarterly rate, although familiar observers will note Q4 is seasonally weak.