Market Roundup
- EUR/USD hit two-and-a-half week high at 1.0898 levels.
- GBP/USD hits 1.5146, highest sinceMar 18(1.5155 top).
- EU’S Dombrovskis says euro zone finance ministers concerned about slow progress in talks with Greece, urgent need to speed up.
- EU’S Moscovici says talks with Greece are becoming more consistent, progress still too slow.
- SNB’S Jordan says will remain active in forex market as necessary to influence monetary conditions; should not underestimate potential effects of latest sharp franc appreciation.
- BOJ’S Nakaso: Capital flows to and from Asia will inevitably become more volatile as Asian markets become more integrated into global markets.
- Germany Apr IFO expectations decreases to 103.5 (consensus 104.5 ) vs previous 103.9.
- Germany Apr IFO current conditions increases to 113.9 (consensus 112.4 ) vs previous 112.0.
- Germany Apr IFO business climate increases to 108.6 (consensus 108.4 ) vs previous 107.9.
Economic Data Ahead
- (0830 EDT/1230 GMT) US Durable Goods Orders ex Transportation, consensus 0.3%, previous -0.4%
- (0830 EDT/1230 GMT) US Durable Goods Orders, consensus 0.6%, previous -1.4%
Key Events Ahead
- (1030 EDT/1430 GMT) BoC Governor Poloz Speech
- (1130 EDT/1530 GMT)Buba Nagel speech in Frankfurt.
FX Recap
EUR/USD hit two-and-a-half week high at 1.0898 levels on upbeat German business climate data. It currently trades at 1.0863 levels. On the downside, support is located at 1.0753 (200 day HMA) levels and a break below would extend its losses to 1.0640 (61.8% retracement of 1.0520 and 1.0847) levels. On the upside, resistance is seen at 1.0935 (61.8% retracement of 1.105 and 1.0520) levels, above which gains could be extended to 1.100 levels. Option expiries at 1.0700 (726M), 1.0800 (229M), 1.0900 (713M).GBP/USD soared higher in Europe and has broken the 1.51 handle, largely due to weakening of the US dollar across board. It hit a one-month high at 1.5146 levels before sliding to 1.5122 levels. On the upside, resistance is to be found at 1.5196 (Feb 3 High), and then at 1.5250 levels. On the reverse side, support is likely to be found at 1.5028 (Today’s Low), and a break below would make the way for 1.5000 levels.AUD/USD is trading near trend line resistance (0.7820), further bullishness only above that level. It has recovered from low of 0.7706. Overall trend is bullish as long as support 0.7695 holds. The pair’s major resistance is around 0.7820 and any break above will take the pair till 0.7935 in short term. On the downside minor support is around 0.7750 and break below will drag the pair further down till 0.7695/0.7680. Option expiries at 0.7730 (500M), 0.7860 (255M), 0.7900 (460M).USD/JPY remained largely unchanged in the European session. It currently hovers at 119.50 levels, having dropped to a low of 119.14 levels earlier in the day. Traders are cautious ahead of the BoJ meeting scheduled at the end of the month. On the topside, immediate resistance is seen at 120.19 (April 14 High) levels and then at 120.45 (April 7 High) levels. On the other hand, support is likely to be found at 119.40 below which losses could be extended to 119 levels. Option expiries at 119.25 (300M), 120.00 (200M), 121.50 (550M).USD/CHF traded flat on Friday, nearing yesterday’s close at 0.9540 levels. The pair has resistance at 0.9575 levels and above which it could be pushed to 0.9600 levels. On the other hand, support is seen at 0.9525 levels and below which it could be seen testing 0.9477 levels.
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