Yehia Noor
02-02-2012, 12:32 PM
Euro still eyeing test of 100-day SMA
Greek PSI talks ongoing; waiting for official agreement
China’s Wen says considering greater contribution to ESM/EFSF
Fed Chair Bernanke testimony and US NFPs in focus
Aussie trade data comes in better thane expected
EUR/CHF and USD/JPY by key levels
Currencies still remain well supported on dips heading into the latter half of the week and the Euro still could head higher towards our objective by the 100-Day SMA at 1.3355. The key level to watch over the coming session comes in by 1.3235, and a break above should accelerate gains. For now, we are still waiting for additional details and the finalization of the Greek PSI deal, and any actualization of the agreement over the coming sessions could act as the catalyst for the next push in the major towards 1.3355. Talk in Europe circulated of the imminent announcement of a deal, but once again nothing materialized and the Euro was left consolidating. Also out in Europe were Euro supportive comments from China’s Wen who said the country would consider greater involvement in the EFSF and ESM. Other factors which come into play over the coming days are the Fed Chair Bernanke testimony and the all important US Non-farm payroll report due out on Friday.
Relative performance versus the USD Thursday (as of 12:00GMT)
1.NZD +0.13%
2.JPY +0.12%
3.AUD +0.08%
4.CAD -0.01%
5.GBP -0.02%
6.EUR -0.16%
7.CHF -0.25%
Elsewhere, the commodity currencies continue to outperform, with Aussie rallying up through 1.0750 following the better than expected trade data earlier today. Market participants managed to shrug off the less encouraging Aussie building approvals, and remain intent on buying the higher yielding currency which has correlated so well to exceptional global equity performance. Other markets worth keeping an eye on are EUR/CHF which trades just over the critical 1.2000 SNB floor and USD/JPY which threatens a retest of the record lows from October at 75.55. The Japanese FinMin was on the wires overnight warning that firm measures will be taken and that short term speculative Yen moves will not be ignored. While we see risks for a break of the record lows at 75.55, we would also heed the warnings of Japanese officials and favor looking to buy USD/JPY with additional declines seen limited from here.
lucky day trade for you all
Greek PSI talks ongoing; waiting for official agreement
China’s Wen says considering greater contribution to ESM/EFSF
Fed Chair Bernanke testimony and US NFPs in focus
Aussie trade data comes in better thane expected
EUR/CHF and USD/JPY by key levels
Currencies still remain well supported on dips heading into the latter half of the week and the Euro still could head higher towards our objective by the 100-Day SMA at 1.3355. The key level to watch over the coming session comes in by 1.3235, and a break above should accelerate gains. For now, we are still waiting for additional details and the finalization of the Greek PSI deal, and any actualization of the agreement over the coming sessions could act as the catalyst for the next push in the major towards 1.3355. Talk in Europe circulated of the imminent announcement of a deal, but once again nothing materialized and the Euro was left consolidating. Also out in Europe were Euro supportive comments from China’s Wen who said the country would consider greater involvement in the EFSF and ESM. Other factors which come into play over the coming days are the Fed Chair Bernanke testimony and the all important US Non-farm payroll report due out on Friday.
Relative performance versus the USD Thursday (as of 12:00GMT)
1.NZD +0.13%
2.JPY +0.12%
3.AUD +0.08%
4.CAD -0.01%
5.GBP -0.02%
6.EUR -0.16%
7.CHF -0.25%
Elsewhere, the commodity currencies continue to outperform, with Aussie rallying up through 1.0750 following the better than expected trade data earlier today. Market participants managed to shrug off the less encouraging Aussie building approvals, and remain intent on buying the higher yielding currency which has correlated so well to exceptional global equity performance. Other markets worth keeping an eye on are EUR/CHF which trades just over the critical 1.2000 SNB floor and USD/JPY which threatens a retest of the record lows from October at 75.55. The Japanese FinMin was on the wires overnight warning that firm measures will be taken and that short term speculative Yen moves will not be ignored. While we see risks for a break of the record lows at 75.55, we would also heed the warnings of Japanese officials and favor looking to buy USD/JPY with additional declines seen limited from here.
lucky day trade for you all