Forex trading headlines 26 February 2014
- BOE’s Broadbent says there is too much focus on specific date for interest rate hike
- Yves Mersch says direct EUR/CNY trading will benefit EU and China
- Investment falls in Canada to the slowest since 2009
- January US new homes sales 468K vs 400k expected m/m
- Fed’s Fisher says even a significant correction in the stock market wouldn’t lead to a let off in tapering
- Mersch says ECP in process of reflecting 360 degrees on policy
- OECD’s Gurria says US is a “Big bright spot” in world economy
- 2014 will be the year for Greece to find growth
- French jobseekers 3316.2k vs 3302.8k exp
- Fed’s Rosengren: Policy should support unemployment decline until 5.25%
- Rosengren doesn’t see a great issue with pricing in most assets
- The end of front running the data is nigh as US Attorney General clamps down on info gathering
Ukraine headlines
- Ukraine to adopt flexible exchange rate as hryvnia collapses
- Ukraines Kubiv wants a visit from the IMF a.s.a.p
- Russia taking measures to ensure security of Ukraine based black sea naval fleet
- White House urges “outside actors” to respect Ukraine’s sovereignty
- US considering $1bn loan guarantees to Ukraine as Kerry warns Russia on military action
Another slow start picked up on Ukraine headlines as threats of military action and other Ukraine problems sent markets running for safety. They yen took flows from the dollar and the dollar took flows from the pound, euro, aussie and other EM currencies.
USD/JPY looked to be heading back to look at 102 from 102.35 when US new home sales surprised to the upside and we quickly took back the losses from 102.10 to 102.30. As the day wore on the Ukraine was ignored and we tried to have a go at breaking out the top of the two month wedge. We ran into familiar resistance at 102.60 and a slide in stocks and US bond yields was enough to see the longs bail once again. We’re back in the box once more on the forth attempt to break out but the falls are becoming shallower so a real break up shouldn’t be ruled out.
GBP/USD couldn’t build a head of steam past 1.6700 on the UK GDP confirmation and caught the Ukraine bug down to 1.6622 from 1.6680. The buyers were waiting once more and we’ve slowly taken back 50 pips to end at 1.6670.
EUR/USD took the biggest hammering of the day in the majors as it fell 80 pips from 1.3740 to the 55 dma and 100 h4 ma around 1.3661/63. the tech held but the bounce has been modest to 1.3687. I hear no meowing.
AUD/USD is suffering vertigo again and after losing another battle to take the upside has slid back towards tried and tested support at 0.8935/40. The clock is ticking before the market decides the upside is too much to take on and we get another go at the lower levels. For now the tight range is still king.
Stocks wavered between the green and red with S&P moves into the 1850’s finding life tough and we look to be finishing the day nearly flat.
With the exception of a few pairs we’re more or less back where we started once again as the ranges hold and the patterns continue. With Aunty Janet set for another testimony-a-thon tomorrow we may get the inspiration we need to start cracking out some of these range. I hope so as it’s doing my swede in.
I’m back on my normal shift tomorrow as I’ve missed annoying Mike in the mornings, and Miles will be covering the US shift. By now Eamonn has started up his steam generators by chucking a few kangaroos in the boiler so with a pull of the lever and a toot of the fog horn I hand you over.
