Market Roundup
- Euro hits 4-week low of $1.0529, down 0.4 pct on day.
- Sterling extends losses, hits fresh 5-year lows.
- BOJ Regional Economic Report: Regional economies recovering or recovering moderately.
- BOJ Gov Kuroda: BOJ will maintain QQE for as long as needed to stably hit 2 pct inflation.
- BOJ Minutes: Many members see high change of meeting 2 pct inflation target in period around FY 2015.
- Italy Feb Industrial Output YY WDA increases to -0.2 % (consensus -1.3 %) vs previous -2.2 %.
- Italy Feb Industrial Output MM sa increases to 0.6 % (consensus 0.5 %) vs previous -0.7 %.
- France Feb Current Account decreases to -1.8 bln eur vs previous -0.3 bln eur.
Economic Data Ahead
- (1400 EDT/1800 GMT) US Treasury budget, Mar, consensus -$43.0 bln, previous -$36.9 bln
No Key Events Scheduled
FX Recap
EUR/USD extended its downward move in the European session and hit 4-week low of 1.0529 levels. It is hovering around 1.0547 levels at present. On the topside, resistance is seen at 1.0619 (Today’s High) levels, above which it could extend its gains to 1.0700 levels. On the downside, support is located at 1.0500 levels and then at 1.0460 (March 8 Low) levels. Option expiries at 1.0550 (593M), 1.0630 (592M), 1.0670-75 (825M), 1.0750 (1.1B).GBP/USD hit five year lows at 1.4565 on Monday before consolidating to 1.46 levels. Its next support is located at 1.4571, and a break below could drag the pair to 1.4550 levels. On the upside, resistance is located at 1.4620, and a break above would make the way for 1.4661 levels. Option expiries at 1.5000 (256M).AUD/USD partially trimmed losses seen in the previous session and currently trades at 0.7570, recovering from the day’s low of 0.7551 levels. On the downside, immediate support is located at 0.7510 levels and a break below could extend its losses to 0.7450 levels. On the upside, resistance is seen at 0.7615 levels and then at 0.7640 levels. Option expiries at 0.7600 (1.7B).USD/CAD has taken support near 1.2540 (200 day 4HMA) and slightly recovered till 1.2620 from that level. Short term trend is bullish as long as support 1.2540 holds. The pair has declined till 1.2560 after release of positive Canadian jobs data. Canadian job markets have added 29000 jobs following a dip of 1000 in Mar. The unemployment rate is at 6.8% compared to forecast of 6.9%. On the downside any break below 1.2540 will take the pair further down till 1.2500/1.2480. The pair’s minor resistance is around 1.2620 and any break above would extend gains till 1.2660/ /1.27080 in short term. Option expiries at 1.2580 (375M).USD/JPY edged higher in Europe, moving closer to the 121 handle as the pair remains boosted by firmer US treasury yields. It currently trades at 120.70 levels, with a high of 120.83 and low of 120.08 levels so far. The pair resistance at 121 levels and a break above could push the pair to 121.20 levels. On the other hand, support might be found at 120.50, below which losses could be extended to 120.10 (Today’s Low) levels. Option expiries at 120.00 (498M), 121.00 (482M), 121.80 (800M), 122.00 (372M).USD/CHF inched higher in the European session and broke above the 0.98 mark. It currently trades at 0.9857 levels, with a high of 0.9861 levels and a low of 0.9777 levels. The pair is likely to find support at 0.9800 levels, below which losses could be extended to 0.9650 levels. To the upside, resistance is eyed at 0.9875 levels and further at 0.9982 levels.
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