Forex trading headlines 6 March 2014
- China looking to remove deposit rate cap nationwide – Official
- Italy will respect 3% deficit to GDP target says Padoan
- Q4 2013 French ILO unemployment rate 10.2% vs 11.0% exp
- CBRC says there is no big problems with China bank liquidity
- Fed’s Plosser says it’s hard to get a read on the economy due to the weather
- Japan’s Suga understands that the GPIF will conduct necessary reforms
- February UK Halifax house prices 2.4% vs 0.7% exp m/m
- Where are EUR, GBP & JPY all going? – Reuters knows
- Crimea to hold referendum on March 16
- Ukraine says Crimean referendum would be illegitimate
- Greek unemployment rate Dec 27.5% vs 28% exp
- German industrial orders Jan m/m +1.2% vs +0.7% exp
- Break or fake for the Kiwi?
- Has the data shown enough to stay the ECB’s hand?
- A cut above, or below, expectations from the ECB today
- BOE leaves interest unchanged at 0.5%
Rate day in the UK and Euro land so the pound and euro took the morning off. The Aussie dollar was still partying after retail sales and is looking to go on an all day bender as it took out the resistance levels during the morning. 0.9055/60 is the current battle ground but the big level still remains at 0.9085/00.
NZD/USD is holding hands with the its aussie boyfriend/girlfriend and broke above the April 2013 resistance line to the highest since last October. A hold of the break should see a move higher but big levels await topside (see break or fake above)
USD/JPY was in a buoyant mood as the Nikkei had a good day and we troubled the Feb highs at 102.80 before falling back. The dollar is back in the game above 102 but still the topside levels are holding.
The BOE left rates and QE alone and the news that they were going to reinvest the latest batch of maturing gilts on the books got a few in the market overly excited. we popped from 1.6725 to 1.6752, but we’re soon back down into the 25/30 pip range we saw all morning.
EUR/USD has been creeping higher all session as the market covers shorts and maybe just starts to expect a Draghi rabbit by way of announcing changes to SMP sterilisation. Some are still hanging on to the possibility of rate cuts but most see the ECB sitting on their hands still. We had a pop alongside cable on the BOE decision though don’t ask me why. Crazy old teflon.
EUR/CHF stuck its head above the 1.22 parapet as it followed U/J up but didn’t like what it saw and we’ve slid back to 1.2182
The ECB is the big event next so I’ll leave you in Mike’s more than capable hands for that. Have a great session all and I’ll see you tomorrow for NFP day.