Good Morning,

- Asia stocks up and dollar slips. GBP/USD above 1.68 level for first time since November 2009.

- Japan's Nikkei 0.56%, Hong Kong's Hang Seng 1.07%, Korea's Kospi 0.31%, Australia's ASX 200 0.52% and China's Shanghai 0.92%.

- Italy imposes 20% Tax withholding on all inbound money transfers.

- ECB Coeure: The European Central Bank is ready to take "decisive action if required" should inflation risk becoming entrenched below the ECB's target of just under 2 percent.

- Moody's Investors Service has changed the outlook on Italy's Baa2 government bond rating to stable from negative.

- Moody's: Japan shrinking current-account surplus is credit negative.

- Bank Of America Warns "The US Dollar Is In Trouble". Global financial and commodity markets are warning that the US Dollar is in for a bout of trouble, warns BofA Macneil Curry. Across asset classes, Curry points out that Gold was the first to make its low against the US Dollar, doing so back on Dec-15.
The second market to turn against the US Dollar was US Treasuries, with Ten year note futures turning bullish back on Dec-26. Currently, the FX market - most specifically GBP - is breaking out and pressuring the US Dollar. Finally, the Japanese stock market continues to suffer, putting downward pressure on USDJPY and thus US Dollar weakness.

- David Cameron's plans for a referendum on Britain's membership of the European Union are "bad" for the economy and could hamper investment, the governor of the Bank of England has warned. Mark Carney said that the prospect of a referendum will create "uncertainty" for businesses and mean that they "hold off" on investment. He compared the referendum, which is due to be held in 2017, to the near collapse of the banks and the financial crisis in the Eurozone.

- Japan's economy grew 0.3 percent in October-December from the previous quarter, posting the fourth straight quarter of expansion, reflecting firm private consumption and a pickup in capital spending.

- China's policymakers have been making moves to cool off its debt-fueled economy. Economists believe growth will slow to around 7.4% in 2014 from 7.7% in 2013. Societe Generale's Wei Yao sees 6.9% growth in her base case scenario. But she warns that there is a risk that China's transition could prove disorderly, causing the economy to slow much more than anyone expects.

- Some good news on China as data showed banks there disbursed the highest volume of loans in any month in four years in January, a surge that suggests the world's second-biggest economy may not be cooling as much as some fear.

- The New Zealand dollar is set to move past parity against the Australian dollar in 2014 for the first time in 40 years, economists at HSBC say. Paul Bloxham, chief economist for Australia and New Zealand at HSBC, told CNBC's Asia Squawk Box on Monday the New Zealand dollar – or kiwi as it is known – could surge over 8 percent against the Australian dollar this year, as its central bank aggressively hikes interest rates. "We think it's [the kiwi] going to appreciate and it could actually get past 86-87 cents [against the U.S. dollar], and perhaps even past Aussie dollar parity for the first time in 40 years,"

- Several once-embattled Asian currencies all gained ground as sentiment improved and dealers reported an influx of funds to many emerging markets. The Indonesian rupiah did especially well with the dollar down 4 percent in as many days. The lower dollar in turn tends to be positive for commodities priced in that currency, helping spur gold to a fresh three-month peak at $1,329.55.

Have a nice Week !

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex Analysis

Editors’ Picks

EUR/USD tops 1.12 amid risk-on mood, ahead of data

EUR/USD is trading around 1.12, the highest since March. The safe-haven dollar is weakening amid optimism for reopening and stimulus, shrugging off civil unrest. EZ Services PMIs beat estimates. ADP's jobs report is eyed.


GBP/USD retraces gains under 1.2600, Brexit, US data eyed

GBP/USD consolidates the latest gains just around 1.26 amid dollar weakness. The Brexit impasse continues despite hopes for mutual concessions. Markit's Final Services PMI beat expectations with 29 points, still reflecting deep contraction.


Crypto market stays strong despite yesterday's sell-off

Once the storm has passed, the real effects are zero at the technical analysis level. The impact on sentiment has been great and returns the market to a neutral level. The market is still in a phase of accumulation, according to a well-known quantitative analyst.

Read more

WTI: Aims to fill the early-March gap above $41.00

WTI eases from a three-month high of $37.17 at the end of the four-day winning streak. The energy benchmark paid a little heed to the price-positive weekly inventory data from the American Petroleum Institute (API).

Oil News

Gold: Prints rounding top on 4-hour chart above $1,700

Gold stays mildly offered after stepping back from $1,745. Considering the bullion’s moderate pullback since the week’s start, a potential rounding top bearish formation appears on the 4-hour chart. An ascending trend line from April 21 is on the bears’ radars.

Gold News

Forex Majors