Littlefish FX Analysts
Littlefish FX
KEY DATA RELEASES TODAY (BST) :
13:30 USD Housing Starts 1.05M v 0.90M
13:30 USD Building Permits 1.08M v 1.09M
13:30 USD Unemployment Claims 284K v 281K
15:00 USD Philly Fed Manufacturing Index 6.5v 5.0
18:00 USD FOMC Member Lockhart Speaks
20:00 USD FOMC Member Fischer Speaks
OVERNIGHT:
The USDJPY has retreated for four consecutive days to 119.14. U.S. treasury notes gained for a fourth straight day on speculation recent weak U.S. data will delay the Federal Reserve from normalization of interest rates. Governor Kuroda said Japan is likely to achieve 2% inflation target in or around end of 2015
The ECB left interest rates unchanged at record low, widely inline with the markets. EURUSD hit1.0570 low during Asian time but the pair bounced back to 1.0740’s on soft US industrial data as the trend of sub par US data continues to hamper USD gains. ECB Draghi said that the speculation of the fledging 60 billion-euro-a-month scheme would be scaled back was “surprising”, and QE would last until September 2016 or until inflation was back up to target.
Amid uncertainty about parliamentary elections on 7 May, Cable hit 1.4699 low against the dollar,but then the pair rebounded to 1.4852 high on the weaker-than-expected US industrial data. Cable rose to a one-month high against Euro at 0.7162 after the ECB Draghi said that there was no plans to curb its 1.1 trillion-euro asset-purchase programme.
PRICE ACTION OVERVIEW:
EUR: While 1.0730/60 contains upside expect 1.05 test en rout to 1.0460, above 1.0810 refocuses on fourth 1.10 test
GBP: While 1.4850/70 contains upside reactions target 1.45 en route to 1.43/42
JPY: While 118.70/90 contains downside target 121.00 en route to retest of year to date highs, only below 118.30 concerns bullish view
CAD: While 123 contains downside target retest of year to date highs en route to 130.00
AUD: While .7860/80 contains upside anticipate third test of key .7550 failure here opens the bearish target of .72, above .7880 alleviates immediate downside pressure
KEY TRADES:
All comments, charts and analysis on this website are purely provided to demonstrate our own personal thoughts and views of the market and should in no way be treated as recommendations or advice. Please do not trade based solely on any information provided within this site, always do your own analysis.
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