25 Mar 2015
What's next: German IFO next focus for EUR traders
FXStreet (Bali) - A low key affair in Asia, with the US Dollar correcting lower after Tuesday's US CPI-led gains, with the Aussie slightly positive, a tad higher than the Yen.
Key headlines in Asia
New Zealand trade balance shrink in February
NZ Fonterra CEO: Concerned about geopolitical impact on dairy demand
BOJ's stock portfolio soars to 10 trillion yen
RBA FSR: Supervision of lending standards should cool down home prices
Dominating themes in Asia - centered on JPY, AUD, NZD
A very quiet session, with nothing much to report. The US Dollar, which hit macro levels against most of its peers yesterday, has managed to recover some decent ground at these key areas, with specs suspected to be again active USD buyers, potentially reinstating positions after the sharp cut in speculative USD long bets during the latest COT report.
The AUD/USD traded on an improved tone, but judging by yesterday's price action, looks like business was pretty much finished above 0.79 after the sharp reversal seen. USD/JPY painted a smiliar picture, with the initial drop to new lows on Tuesday counter-attacked with strong conviction by fresh longs, taking the rate above 119.50, where it holds. NZD/USD has been able to hold above the 0.86 level, where model stops were reported by Bloomberg.
Heading into Europe - centered on EUR, GBP
In Europe, the event to monitor at 9 GMT will be German IFO business climate. Jessica Hinds, European Economist at Capital Economics, said "to expect the German Ifo index to have risen for the fourth consecutive month in March, adding to signs that the German recovery continued in Q1." While Hinds notes that "there is a risk that the Greek crisis has affected activity this month, industrial production rose at a decent clip in January and previous falls in the euro may now be having a positive effect." Hinds expects a rise in the BCI to 107.2.
Valeria Bednarik, Chief Anayst at FXStreet, shared her insights, from a the technical perspective, in both the Euro and the Pound. With regards to the Euro, Valeria thinks that the short term picture has now turned in favour of the bears, saying that "a break below 1.0865 would probably signal the USD is ready to resume its advance." As per the Pound, the technical picture favors further declines, Valeria said, with 1.4810 immediate support.
Key headlines in Asia
New Zealand trade balance shrink in February
NZ Fonterra CEO: Concerned about geopolitical impact on dairy demand
BOJ's stock portfolio soars to 10 trillion yen
RBA FSR: Supervision of lending standards should cool down home prices
Dominating themes in Asia - centered on JPY, AUD, NZD
A very quiet session, with nothing much to report. The US Dollar, which hit macro levels against most of its peers yesterday, has managed to recover some decent ground at these key areas, with specs suspected to be again active USD buyers, potentially reinstating positions after the sharp cut in speculative USD long bets during the latest COT report.
The AUD/USD traded on an improved tone, but judging by yesterday's price action, looks like business was pretty much finished above 0.79 after the sharp reversal seen. USD/JPY painted a smiliar picture, with the initial drop to new lows on Tuesday counter-attacked with strong conviction by fresh longs, taking the rate above 119.50, where it holds. NZD/USD has been able to hold above the 0.86 level, where model stops were reported by Bloomberg.
Heading into Europe - centered on EUR, GBP
In Europe, the event to monitor at 9 GMT will be German IFO business climate. Jessica Hinds, European Economist at Capital Economics, said "to expect the German Ifo index to have risen for the fourth consecutive month in March, adding to signs that the German recovery continued in Q1." While Hinds notes that "there is a risk that the Greek crisis has affected activity this month, industrial production rose at a decent clip in January and previous falls in the euro may now be having a positive effect." Hinds expects a rise in the BCI to 107.2.
Valeria Bednarik, Chief Anayst at FXStreet, shared her insights, from a the technical perspective, in both the Euro and the Pound. With regards to the Euro, Valeria thinks that the short term picture has now turned in favour of the bears, saying that "a break below 1.0865 would probably signal the USD is ready to resume its advance." As per the Pound, the technical picture favors further declines, Valeria said, with 1.4810 immediate support.