Foreign Exchange Market News:
- CFTC speculative positioning data showed an implied increase in long USD positions of 45% on the week.
- PM Brown to spend up big and save banks and rescue the economy.
- An interesting week ahead for the US top 20 banks.
- The US Governments total bail out tab…so far.
- The SEC under fire again for potentially failing to fully investigate alleged insider trading allegations.
- Italy’s CPI to January slows sharply.
- Asian nations lift currency defence fund to $120Bio.
- Global economic data release table.
Currency Foreign Exchange Market Goings On:
- The USD weakened against the EUR, Cable and AUD early on in the London session which saw each reach new highs for the day. The EUR has since weakened against the JPY and the Cable while the EUR/JPY continues to try and build a base above the 121.00 level, although the 120.00 level remains the one to pay attention to. The EUR/USD has managed to hold above 1.2800 since setting the daily high at 1.2992.
- The EUR/GBP failed to take out the important 0.8900/30 region and ended up retesting support at 0.8800/10 before triggering stops below 0.8780 and heading to an eventual low of 0.8748. Expect it to target 0.8650 while it remains below 0.8800.
- The USD/JPY managed to take out the important 94.50/60 resistance region and fell just short of the 95.00 level. If we can build a base above the 94.50 level we should see a move towards 96.00 in the coming days, although i am not convinced of the USD/JPY’s ability to maintain levels above 94.50/60.
- The USD/CAD again impressed, breaking lower to almost reach my target of 1.2300, setting a low for the day of 1.2348.
- Ranges: EURUSD 1.2776/1.2992, USDJPY 92.74/94.95, GBPUSD 1.4361, 1.4660, AUDUSD 0.6413/0.6548, USDCAD 1.2348/1.2557, EURCHF 1.4794/1.4933, EURJPY 119.03/121.92, EURGBP 0.8748/0.8917.
- Today’s Charts – Majors – Crosses
