Forex Market News:
- UK PM Brown “…protectionism is the road to ruin…”
- UK FI rejects Lloyds bonuses.
- Rising bad debts in the US hurt HSBC.
- MPC – ometer predicts BOE to keep rates unchanged at 1% this week.
- Swiss SVME PMI comes in at 32.6 Vs 34.8 forecast.
- Euro Zone Final Manufacturing PMI as expected at 33.5.
- UK Manufacturing PMI comes in at 34.7 for Feb Vs 34.9 forcast.
- Darling expected to OK BOE quantitative easing.
- Euro Zone Flash CPI estimate better than expected at 1.2% Vs 1.0% forecast y/y.
- For a table containing all the data releases in Asia and London so far today as well as an idea of what is still to come please click here.
Forex Market Going’s On:
- Early Europe saw the AUD, EUR and Cable all rally against the USD and JPY despite the Asian equity markets all taking a hammering. Mid Eastern names were seen taking the AUD/USD from 0.6340 to 0.6380 but once the buying dried up the AUD/USD continued to look soft but somehow still manages to remain above the 0.6300 level, although for how much longer i am not sure.
- Cable had held up well for most of the morning, despite the dip to 1.4155 before selling ahead of the 12pm London fix was reported as responsible for a sharp fall from 1.4180 to 1.4118. A break below 1.4080 could see the focus on Cable return to the 1.3600 level so it may be worth stopping and reversing below that level if you are currently long Cable.
- The EUR/JPY has looked a little soft tonight and may continue to head towards support at 120.00.
- London Ranges: EURUSD 1.2560/1.2620, USDJPY 97.01/97.70, GBPUSD 1.4118/1.4287, AUDUSD 0.6317/0.6380, EURCHF 1.4751/1.4817, EURJPY 122.07/122.57, EURGBP 0.8806/0.8924 USDCAD 1.2722/1.2856.
- I have attached charts of the majors and the EURO crosses to give you an idea of the price action so far today.
