Global Markets:
- Asian stock markets: Nikkei down 0.25 %, Shanghai Composite fell 1.25 %, Hang Seng declined 0.60 %, ASX 200 lost 0.35 %
- Commodities: Gold at $1221 (+0.95 %), Silver at $15.30 (+0.80 %), WTI Oil at $32.95 (-1.35 %), Brent Oil at $34.25 (-1.30 %)
- Rates: US 10 year yield at 1.73, UK 10 year yield at 1.39, German 10 year yield at 0.18
News & Data:
- Australia ANZ Roy Morgan Weekly Consumer Confidence Index (W/E 21 Feb): 114.3 (prev 113.6)
- PBoC Fixes Yuan At 6.5273 (prev 6.5165)
- Japanese EconMin Ishihara: Not Engaged In Currency Wars
- Asian shares surrender gains as oil prices retreat – RTRS
- Wall St lifted by muscular oil rally but some still skittish – RTRS
- Yen gains as risky assets lose traction, pound and euro shaky – RTRS
Markets Update:
GBP/USD extended losses overnight after renewed Brexit worries pushed the British Pound lower. The pair fell from 1.4150 in early Sydney to a low of 1.4106. Immediate support is seen at 1.4050, while the key level remains 1.40. A break below would then suggest a test of the 2009 lows around 1.37 is likely.
EUR/USD fell in sympathy with the Pound and tumbled from 1.1120 to a low of 1.10 yesterday. In Asia, it recovered slightly and rose to 1.1050. Resistance is now seen at 1.1080 and 1.1140, while support lies at 1.0980 and 1.0950.
USD/JPY fell along with equities and price action was choppy in Asia. It opened around 113 in Sydney, but came under heavy selling pressure after the Tokyo open, falling to 112.00.
The commodity currencies remain bid, with AUD/USD rising to 0.7244 overnight, while NZD/USD climbed to 0.6715.
Upcoming Events:
- 07:00 GMT – German GDP
- 09:00 GMT – German IFO Business Climate
- 10:00 GMT – Bank of England Governor Carney speaks
- 11:15 GMT – SNB Chairman Jordan speaks
- 13:30 GMT – FOMC Member Fischer speaks
- 15:00 GMT – US CB Consumer Confidence
- 15:00 GMT – US Existing Home Sales
- 15:00 GMT – US Richmond Manufacturing Index
