The euro stayed under pressure on Wednesday

Good Morning,

- The euro stayed under pressure on Wednesday as investors counted on the ECB to unveil a stimulus drive tomorrow… the Japanese yen gained against the dollar after the BOJ did not expand its stimulus.

- Asian shares hit a six-week high.

- U.S. debt prices also remained firm, as ever-falling European bond yields make higher-yielding U.S. bonds on demand. The 10-year U.S. notes yield stood at 1.797 percent, having fallen to as low as 1.698 percent on Tuesday, its lowest level since May 2013.

- Credit Suisse on EUR/USD: The pair still trading in retreat hovering around a new cycles lows, maintaining multi-year top below the 1.2042 low of 2012, notes Credit Suisse. "We look for 1.1650 to ideally cap to keep the immediate risk lower with support placed at 1.1512 initially, below which should see a move back to 1.1460/46. Beneath here should see a test of 1.1381, the November 2003 low, ahead of the 61.8% retracement of the entire 2000/08 rise at 1.1212 next," CS projects. "Near-term resistance shows at 1.1607. Above 1.1650 can see a recovery back to 1.1728/43, where we would expect fresh sellers. A break can see 1.1794, potentially 1.1841," CS adds.

- The U.S. National Futures Association may change its rules for how much leverage retail clients trading currencies can take on, a spokeswoman said on Tuesday, after last week's emergency rescue of broker FXCM . The Chicago-based NFA, which oversees the trading of retail foreign exchange products, said any chances would be to make sure that its leverage requirements were in line with those of exchanges that trade currency products.

- Japan’s central bank cut its inflation forecast and kept its unprecedented monetary easing unchanged as tumbling oil prices handicap efforts to inflate the world’s third-biggest economy. The Bank of Japan will increase the monetary base at an annual pace of 80 trillion yen ($674 billion), it said in a statement in Tokyo today, as forecast by all 33 economists surveyed by Bloomberg News. The BOJ cut its inflation projection to 1 percent for the fiscal year starting in April and raised its growth estimate for the period to 2.1 percent.

- BOJ’s Kuroda says Japan’s economy continuing to recover gradually. Inflation expectations seen rising over longer term, no change to underlying trend in Japan. CPI likely to reach 2% around FY 2015. CPI forecast assumes gradual rise in oil prices. BOJ will check risks, adjust policy as needed. QQE is having desired effect, some BOJ members more cautious on CPI forecast for FY 2015. Falling oil prices a positive for Japanese economy, oil prices will put upward pressure on CPI in longer term but limit gains in short term.

- Australia's consumer confidence has risen from December's "disturbing" lows, with plummeting petrol prices a contributing factor, according to Westpac. The Westpac Melbourne Institute Index of Consumer Sentiment rose to 93.2 in January, up from 91.1 in December. December's result, which Westpac chief economist Bill Evans called "disturbing", was the lowest since August 2011.

- Gold extended its rally to a five-month high, rising above $1,300 per ounce for the first time since August, having risen 10 percent so far this year. Silver also rose to a four-month high of $18.32 per ounce.

- Oil falling as much as 5 percent on Tuesday after the International Monetary Fund cut its 2015 global economic forecast.

- Watch today: UK inflation reports, US mortgages, housing starts.

Have a nice Day !