EUR/USDUSD/JPYGBP/USDUSD/CHF
1.296597.451.41851.1715
Resistance1.2996.81.40051.168
1.28896.61.39551.165
1.2705961.36551.1485
Support1.265594.951.3551.1435
1.25894.261.351.14

The dollar may weaken to 95 yen and $1.33 per euro as momentum charts show “sell” signals for the greenback. The dollar may extend its decline to 95 yen, or 38.2 percent below the peak of its rally from this year’s low in January, said Osamu Takashima, chief foreign-exchange analyst at Bank of Tokyo-Mitsubishi, citing a so-called Fibonacci chart. Fibonacci analysis indicates the dollar will drop to $1.33 per euro, Takashima said. The greenback climbed to 99.68 yen on March 5, the strongest in almost four months, after touching its lowest in more than 13 years at 87.13 yen on Jan. 21. Daily momentum charts such as the stochastic oscillator and moving average convergence/divergence are also now showing sell signals for the dollar. The USD/JPY is currently trading at 96.10 as of 8:40am, GMT.

Sterling extended losses against a broadly stronger euro on Wednesday, lifting the euro to a six week high above 93 pence, as rising stock markets dampened risk aversion in FX markets. Data showing a steep drop in Chinese exports earlier in the day reinforced views of the dire state of the global economy, prompting investors to seek the relative safety of the U.S. dollar and triggering yen-buying against sterling. The single Euro currency earlier hit a two week high against the dollar. "With risk appetite improving for now, the euro stands to benefit," said Geoffrey Yu, currency strategist at UBS in London. "We are seeing momentum buying in the euro." The GBP/USD is currently trading at 0.9281 as of 8:50am, GMT.

Treasury Secretary Timothy Geithner pushed Group of Seven officials to soften criticism of China last month after his accusation that the nation was “manipulating” the yuan strained ties with the U.S.’s second- biggest trading partner, said a person briefed on the matter. G-7 finance ministers and central bankers on Feb. 14 welcomed “China’s fiscal measures and continued commitment to move to a more flexible exchange rate.” By contrast, the group in April 2008 pressed for “accelerated appreciation” of the yuan. “Geithner’s change of attitude showed that he’s paying more attention to China’s effort in reforming its currency over the past few years,” said Peng Xingyun, a senior international finance researcher at the Chinese Academy of Social Sciences, a government-backed institute in Beijing.

Pie


Today's Economic Events

Time Event Currency Period Previous Forecast Significance
21:45Core Retail Sales m/mNZD-0.60%0.20%3
21:45Retail Sales m/mNZD-1.00%-0.10%3
14:00Business Inventories m/mUSDJan-1.30%-1.00%2
13:00SNB rateCHFQuarterly0.50%3
12:30Core Retail Sales m/mUSDFeb0.90%-0.20%3
12:30Retail Sales m/mUSDFeb1.00%-0.50%3
12:30Jobless claimsUSDWeekly639K640K3
11:00Industrial Production m/mEURJan-4.60%-3.00%2
10:00Leading Index m/mGBP-0.60%1
7:45CPI m/mEURFeb-0.40%0.20%1
0:30Unemployment RateAUDJan4.80%5.00%3
0:00ECB President Trichet SpeaksEUR2