| EUR/USD | USD/JPY | GBP/USD | USD/CHF | |
| 1.5665 | 102.25 | 2.0465 | 1.028 | |
| Resistance | 1.5645 | 101.8 | 2.0445 | 1.02 |
| 1.5645 | 101.3 | 2.034 | 1.017 | |
| 1.5495 | 100 | 2.025 | 1.0085 | |
| Support | 1.5385 | 99 | 2.022 | 1 |
| 1.53358 | 98 | 2.0145 | 0.99 |
The dollar weakened against the Euro to record levels. The common European currency reached highs near $1.5592, the highest since the Euro’s debut in 1999. Euro dollar was last seen trading at $1.5601 9:10GMT. Technical analysis shows buy a bounce near $1.5495. Japanese yen has traded below 100.00 this morning, and was last seen trading near 99.93. Market strategy is to sell a failure to break near 100.02.
The greenback’s slide is expected to continue as Middle Eastern countries and China expand their asset holdings in non-US assets. ``Weighing on the U.S. dollar were fears of sharper central bank reserve re-balancing away from the greenback,'' John Kyriakopoulos, a currency strategist in Sydney at National Australia Bank, wrote in a research note today. This inflationary dollar behavior is widely seen in oil prices today.
US monthly budget registered a higher than expected record deficit of 175.6bn, compared to the previous deficit of 120bn. The total deficit for the year to September is expected to be a record $410bn. Eurozone industrial production was stronger than expected with the monthly increase coming in at 0.9% versus expectations near 0.4%. This figure supported Euro’s rally yesterday.
Yesterday, UK trade balance came in at -7.503b from -7.5b, but sterling continued its gain on the dollar. The pound was last seen trading at 2.0343. Technical analysis shows buy a bounce near $2.0290 and sell a failure to break $2.0360.
Ahead today, we expect a positive result for retail sales. The headline rate is expected to grow at 0.3% on the month unchanged from the 0.3% seen in January. Weekly retail sales have been trending higher so the risk to the retail sales data is likely to be on upside. The dollar might recover slightly but has lost too much momentum over the last day.
Today's Economic Events
| Time | Event | Currency | Period | Previous | Forecast | Significance |
| 14:00 | Business Inventories m/m | USD | Jan | 0.60% | 2 | |
| 12:30 | Industrial Capacity Utilization Rate | CAD | Quarterly | 82.70% | 2 | |
| 12:30 | Core Retail Sales m/m | USD | Feb | 0.30% | 4 | |
| 12:30 | Retail Sales m/m | USD | Feb | 0.30% | 3 | |
| 12:30 | Import Price Index m/m | USD | Feb | 1.70% | 2 | |
| 12:30 | Unemployment Claims | USD | Weekly | 2 | ||
| 8:30 | Interest Rate Statement | CHF | Quarterly | 2.75% | 4 | |
| 7:45 | Payrolls | EUR | Quarterly | 0.40% | 2 | |
| 4:30 | Industrial Production m/m | JPY | Jan | -2.00% | 2 | |
| 0:30 | Employment Change | AUD | Jan | 26.8K | 3 |
