- Latest market rumours put the LTRO take up at close to EUR 525 billion (bank analysts forecast EUR450 bln)
- Australian January retail sales as expected at +0.3% MoM
- Japanese January industrial output +2% MoM
- UK consumer confidence holds steady in February
- Fed’s Pianalto: Monetary policy appropriately positioned
- Regional stocks +1% on average
- Gold $1789/oz; Oil $107/bbl
The USD has been generally on the defensive in Asia, with pairs like USD/SGD and USD/KRW leading the way. This sentiment has spilled over into the major pairs with AUD/USD and NZD/USD both making decent gains.
USD/JPY has had conflicting forces at play with the overall soft USD finally overcoming the risk-on tendency to sell the JPY against the other majors. The pair opened near 80.50, rose to session highs on coss/JPY buying but has slid bacdk to session lows as the USD/Asia selling continued. Ranges: 80.29/68
EUR/USD has been boosted by both the risk-on sentiment and by the USD selling and has drifted slowly higher albeit in a tight range. Real money selling near 1.3485 has helped to cap the pair. Ranges: 1.3452/85
AUD/USD has had similar drivers to the EUR, and has gradually edged higher although selling has intensified as we near recent range highs. 1.0759/1.0822
Cable 1.5896/1.5937; EUR/CHF 1.2045/55
