Forex Market
FX Daily Strategist: Europe
Eurogroup tomorrow is immediate focus – but Moody’s reminds of longer-term problems Relief over Greece’s ratification of the austerity measures kept markets on firm footing Monday, and attention now turns to tomorrow’s Eurogroup meeting. We expect the formal approval of the second EU/IMF loan package, alongside details of the PSI component of the bail-out – […]
AUD/USD Analysis
Opened at $1.0735 and after a brief high of $1.0739, fell back sharply with the EUR/USD following the Moody’s ratings announcement. Comments from ECB’s Nowotny over Greece’s ability to meet its austerity obligations were also adding weight ahead of tomorrow’s meeting.
USD/JPY Analysis
Opened at Y77.57 after recovering from lows of Y77.40 in NY and came under pressure as EUR/JPY sales emerged on the back of downgrade/negative outlook news from Moody’s over 9 European sovereigns. The USD fell through the NY lows to Y77.36 before recovering to Y77.60 ahead of the BOJ announcement.
GBP/USD Analysis
Opened at $1.5768 in Asia after being under pressure for the whole NY session on fading risk appetite as doubts build over Greece’s ability to implement its austerity measures. The Asia session opened to further rating news (after S&P and Fitch both announced downgrades to Spanish banks yesterday afternoon) with Moody’s downgrading ratings of 6 […]
EUR/USD Analysis
Opened at $1.3185 after being ground down in NY on downgrade announcements from Fitch and S&P of Spanish banks, and dwindling optimism over Greece as ECB’s Nowotny warned that more had to be done if Greece was to meet its austerity measures.
Behavioral Finance: Daily Forex Outlook: No closure yet for Greece
EUR USD (1.3250) The Greek Parliament approved the austerity package aimed at averting default on the March 20th bond repayment deadline. The backdrop of continuing street violence and several cabinet-level resignations, of course, is unlikely to instil confidence in the market that the Greek travails are heading for a closure.
Technical Analysis – FX Daily Majors
Today’s highlights: · EURUSD: Friday erosion hints at a top, but close through the 13-day EMA, now 1.3125, needed to confirm. Otherwise, risks remain higher this week
FX Daily Strategist: Europe
Greek Parliament approves austerity bill Greece’s parliament early Monday ratified austerity measures of EUR 3.3 billion in wage, pension and job cuts this year, which should now give way to the release of the second EU/IMF loan package at Wednesday’s Ecofin meeting.
European FX Daily – Risk rally after Greek lawmakers pass austerity plans
– The AUD and SGD lead rally vs the USD, Asian equities up 0.2-0.7% – Greek parliament approves austerity measures – Greek PSI in focus – Firmer US data is supportive of the risk complex
Technical Analysis
Euro to decline? NOK/SEK to take off! EUR/USD – spiked above the neckline…GBP/USD – potential top formation…EUR/JPY – correction in its latter stage…EUR/SEK – still stuck in the doldrums…EUR/NOK – low end of parallel channel…USD/CAD – bullish print to take note of.
AUD/USD Analysis
Opened at $1.0670 in Asia after lows in NY of Friday of $1.0640. The pair slipped to $1.0666 in early trade this morning before heading up with the EUR/USD on optimism that the Greek vote would pass.
USD/JPY Analysis
Opened at Y77.55 and headed higher on demand into the Tokyo fix and optimism ahead of the Greek vote which tore EUR/JPY higher, helping the USD to a day’s high of Y77.78. The move was short lived with exporters leading a steady fall back to Y77.57 in another uninspiring trading session for the USD/JPY.