Forex Market
USD/JPY Analysis
Opened in Asia at Y80.67 after sharp falls yesterday from Asian highs of Y81.86 to lows of Y80.65 in NY on widespread yen demand and heavy sales in EUR/JPY on the back of Spanish debt concerns.
AUD/USD Analysis
Opened at $1.0252 and came under early pressure from US fund sales searching for stops and barriers which were triggered through $1.0250 and $1.0230 to lows of $1.0226. Japanese, real money and corporate names along with stronger aussie Feb housing finance data led a recovery and sparked some short covering.
JPY Analysis
Opened in Asia this morning at Y81.49 and headed higher into the Tokyo fix on rumoured Japanese pension fund demand to highs of Y81.86. The USD later pared back to opening levels after the BOJ left rates and asset purchasing unchanged which prompted a round of EUR/JPY and AUD/JPY sales.
GBP Analysis
Cable closed in NY around $1.5897, after correcting back from a late session rally high of $1.5915. Rate edged higher into Asia, the move up aided by EUR/USD and EUR/JPY led rally, with rumoured, then confirmed, strong China traded data providing the added lift to take rate on to a high of $1.5931.
EUR Analysis
EUR/USD closed in NY at $1.3105, after correcting back from a late recovery high of $1.3133. Rate marked lows at $1.3100 into Asia before recovering, the move up aided by EUR/JPY demand into the Tokyo fix but main demand emerged on rumours for strong Chinese trade data.
Daily FX Technical Strategy: European concerns
European problems are not going away. Last week was the worst week so far this year for key US and European equities and the US and German rates markets responded accordingly with a bid. That the US/German yield spread is testing the lows of this year is a telling sign for Europe.
Behavioral Finance: Daily Forex Outlook: US jobs number reflects Bernanke’s concerns
EUR USD (1.3150) Higher volatility last week, amid a steep drop in the euro, indicated popular concern that the single-currency might fall out of the range that has dominated over the last two months.
Technical Analysis – FX Daily Majors
Today’s highlights: EURUSD: Eyeing Head & Shoulders neckline, 1.3030; below targets 1.2805. USDJPY: Forceful Friday plunge through 81.96/83 support keeps correction risk still lower through 81.07 retrace level to our 80.58 target.
European FX Daily – Chinese exports up, imports down
– European FX leads modest rally vs the USD, Asian equities mixed – Bank of Japan kept policy on hold as expected – China’s export growth higher than expected, imports disappointed – France’s industrial output likely rose in February
FX Market Technical Research
EUR/USD despite weak payrolls on Friday, the rebound on EUR/USD has been tepid at best and the market starts this week sitting just above the 1.3004 March low. Key short term support remains 1.2974/54, the February low and 61.8% Fibonacci retracement.
GBP/USD Analysis
Closed in NY around $1.5897, after correcting back from a late session rally high of $1.5915. Rate edged higher from its Asian opening low, the move up aided by EUR/USD EUR/JPY led rally, with rumoured, then confirmed, strong China traded data providing the added lift to take rate through that NY high and on to […]
EUR/USD Analysis
Closed in NY at $1.3105 after correcting back from a late recovery high of $1.3133. Rate marked an early low at $1.3100 into Asian trading before recovering, the move up aided by EUR/JPY demand into the Tokyo fix but main demand emerged as rumours for a strong Chinese trade data release swirled.