Forex Analysis
USDJPY – large range unfolding to mark time between 105/103
The wave-(4) correction is covering a wide range of prices from 102.86-105.44. Because of the choppy nature of the move lower from 105.44,
Brazil: The BCB takes a stronger stand against inflation
During the night (CET), Banco Central do Brasil decided to keep the pace of monetary tightening, raising the so-called Selic rate by 50 bp to a 2-year high of 10.50%.
EUR Mid-day Analysis
While the Euro has managed to bounce off the prior session’s lows overnight, the charts in the Euro don’tappear to have improved technically.
CAD Mid-day Analysis
A temporary oversold technical condition has probably allowed the March Canadian ameasure of consolidation action just above the 91.00 level.
GBP Mid-day Analysis
The Pound has forged a minor failure on the charts overnight with the March contract temporarily fallingdown to the lowest level since December 20th.
CHF Mid-day Analysis
The March Swiss temporarily fell back below the 1.10 level overnight but seemed to find some freshbuying interest. Residual support from positive Swiss retail sales figures and
JPY Mid-day Analysis
The Yen has forged another lower low for the move and appears to be poised to return to and perhapsbelow the December and January lows.
USD Mid-day Analysis
The bull camp has to be a little discouraged with the setback from the highs yesterday, as US data andhawkish Fed talk should have entrenched the Dollar at this week’s highs.
Central European Daily
Polish inflation slightly rose in December … … to hit 0.9 % on average in 2013 On Wednesday, the Polish statistical office followed its Hungarian peer and released data on December inflation.
The Dollar-Equity Puzzle
Being lulled into stable correlations is the trait of a market regime. So whencorrelations change, one should take notice; it could signal a regime change.Indeed, we believe last year marked just such a change.
The Global Macro Pulse
AUDUSD has stolen the FX show, dropping 1.2% to 0.8813 following the employment report. EURUSD has bounced off of its lows to 1.3618 while USDJPY rose to a high of 104.92 before edging down to 104.71.
FX Daily
In the data calendar the main event is US consumer prices for December. We expect inflation to accelerate to 1.5% y/y from 1.2% y/y mainly on the back of higher food prices.