Forex Market
EUR/USD ANALYSIS
Closed in NY at $1.2965, the rate having extended its recent rally to $1.2972 through the US afternoon. Rate moved higher again into early Asia, pushing up to mark highs at $1.2973 before settling above $1.2954 through the balance of the session.
EUR consolidates gains; Risk still looking buoyant
The last trading session before most of Asia disappears for the extended Lunar New Year holidays was a quiet affair though Asian bourses put in a strong showing and risk generally consolidated yesterday’s up-move.
AUD/USD ANALYSIS
The AUD/USD appears content to gravitate around the 200 day MA which currently lies around $1.0409. The pair continues to lag the EUR/USD rally as the cross recovers from record lows of A$1.2228 seen on Tuesday.
USD/JPY ANALYSIS
USD/JPY was content to consolidate yesterday’s gains holding above Y77.00 in a tight Y77.06-21 range after opening the session at Y77.11. Some demand was seen into the Tokyo fixing with an early move to Y77.17 before easing to the lows.
Three cheers for extend and pretend – or not?
This market is cheering global signs of extending and pretending from global governments and central banks. We know where it will all end, but the trouble is always figuring out how long the market wants to live in fantasy land.
FX Daily Strategist: Europe
Markets focusing on the positive and seemingly ignoring Greek event risks…for now Risk in FX markets has continued to edge higher as the markets seems to focus on the positives out of Europe, with a successful Portuguese bills auction and news that the IMF will attempt to increase its lending capacity carrying the day. But […]
Behavioral Finance: Daily Forex Outlook : The tenuous rally in euro
EUR USD (1.2860) At first glance, the news that IMF is being put to work yet again to gather resources to tackle the eurozone crisis, looked positive, the euro rallied. However, what looked ostensibly positive actually also implied that the eurozone funding problems still exist and, worse, that none of the European countries were taking […]
EUR/SEK ANALYSIS
EUR/SEK to extend weakness to 8.7109 and 8.7006, as the sustained EUR downtrend pushes into fresh 10-month lows below 8.7838. A daily close below 8.7838 would upgrade the eight-week bear wave off the 9.2940 lower high, bringing the focus onto a 1.618 Fibonacci extension target at 8.7109 and leaving the important February 2011 reaction low […]
GBP/USD ANALYSIS
GBP/USD closed in NY at $1.5438, off its extended recovery high of $1.5444. Rate traded the early part of Asia between $1.5423/38, as it consolidated Wednesday’s move, extending to $1.5446 into the Asian afternoon before easing ahead of the European open to hold between $1.5423/33.
EUR/USD ANALYSIS
EUR/USD closed in NY at $1.2864, having extended Wednesday’s rally through European highs of $1.2847 to $1.28655 during the afternoon session as talk swirled suggesting a Greek deal could be in place by Friday. Risk appetite remained in place into early Asia, allowing rate to push on to $1.2880.
JPY ANALYSIS
The USD opened at Y76.83 and fell from, early highs of Y76.85 to Y76.72 before finding some support. EUR/JPY eased from Y98.84 to Y98.55 before a bounce to Y98.81. The pair supported by talk of an increase in the IMF bail out funds and hopes of a resolution to the Greek debt deal.
UniCredit EEMEA Daily
News CZ: Mixed – MinFin sells CZK 7.95bn VAR/17: avg. yield 6M PRIBOR+89bp, bid/cover 1.21 / CNB Governor M. Singer said that the current CZK exchange rate allows CNB to keep its policy rates on hold (p2) PL: Dovish – Labor market confirms the lack of wage pressure in the economy (p2)