FX News Today
- Asian indices broadly higher amid fresh hopes on the US-Sino trade front.
- BoJ kept policy unchanged as expected, exports seen weighing on outlook.
- Trump-Xi summit pushed back to end of April, USTR cited “major issues”.
- Xinhua news agency reported that Chinese Vice Premier Liu He had a telephone conversation with US Secretary Mnuchin and US Trade Representative Lighthizer and that further substantive progress on trade talks has been made.
- UK lawmakers backed a delay to the Brexit process.
- PM May set to ask for a short term extension if her Brexit deal gets through by March 20, i.e. before the next EU summit, or a long term delay if not.
- European stock futures are moving higher in tandem with US futures.
- WTI future is trading at USD 58.76 per barrel.
- EURUSD softer after posting 9-day high at 1.1341 following soft US PPI
- USDJPY lifted to 1-week highs above 111.70; Yen wary of BoJ dovish tone.
Charts of the Day
Technician’s Corner
- EURUSD found a floor at 1.1310 after rebounding from 1.1290 and overall remains in an uptrend. The same positive bias held intraday as well, with MAs pointing upwards and RSI sloping above 50.
- GBPUSD is trading in a descending triangle. Support is held at 50-period SMA at 1.3225 and Resistance at 1.3265. A break of these barriers could suggest the near term direction for Pound.
- XAUUSD rebounded from 1297 and broke the 1300 barrier earlier. Upper Bollinger bands are extending higher while the asset has regained more than 60% of the losses seen yesterday, turning the negative near term outlook to a positive one.
Main Macro Events Today
- BoJ Kuroda Speech – Due to speak at the B20 Tokyo Summit.
- EU Final CPI – The overall Eurozone HICP is anticipated at 1.5% y/y.
- Canadian Manufacturing Sales – the Manufacturing shipment values are expected to edge 0.5% higher in January after the 1.3% drop in December.
- Michigan Sentiment and Industrial Data– Industrial production is projected to rise 0.4% in February, after a 0.6% drop in January, while capacity utilization should rise to 78.4% from 78.2% in January. An early March Michigan Sentiment reading is expected of 96.0 , up from 93.8 in February, but well below the 14-year high of 101.4 last March.
Support and Resistance
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Andria Pichidi
Market Analyst
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