Wednesday 10th February: European Opening

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Global Markets:

  • Asian stock markets: Nikkei down 3.60 %, ASX 200 declined 1.40 %, Shanghai Composite and Hang Seng closed for holiday
  • Commodities: Gold at $1191 (-0.60 %), Silver at $15.25 (-1.30 %), WTI Oil at $28.50 (+2.10 %), Brent Oil at $31.05 (+2.40 %)
  • Rates: US 10 year yield at 1.72, UK 10 year yield at 1.41, German 10 year yield at 0.24

News & Data:

  • Japan PPI (MoM) Jan: -0.9% (exp -0.7% prev -0.3%)
  • Japan PPI (YoY) Jan: -3.1% (exp -2.8% prev -3.4%)
  • Japan Housing Loans (YoY) Q4: 2.2% (prev 2.4%)
  • Australia HIA New Home Sales (MoM) Dec: 6.0% (prev -2.7%)
  • Australia Westpac Consumer Confidence Index (Feb): 101.3 (prev 97.3)
  • Westpac forecasts NZ will enter deflation in 2016
  • Nikkei 225 Hits Lowest Level Since Oct 2014

Markets Update:

USD/JPY came under renewed pressure as Asian stock markets opened lower again. The pair fell from a high of 115.25 in the early session to 114.25, only 4 pips away from yesterday's low. Support at 115.20/25 held for the third time in 24 hours, but it is looking very fragile and a break lower seems likely. Next support is then seen at 113.50.

The Euro continues to benefit from the risk aversion in markets and climbed to a high of 1.1340 in yesterday's NY session. Overnight, it retraced some of the gains, falling to a low of 1.1282, but it remains well bid overall. Expect good support at 1.1243, a former key resistance level.

The Australian Dollar was consolidating in Asia, with AUD/USD caught in a 0.7040-80 range. There are no relevant data releases out of Australia this week, so unless Fed Chair Yellen shakes up markets tonight, it could remain quiet in the AUD pairs. NZD/USD traded 0.6605-45 overnight and support is seen at 0.6560, while the key resistance levels are now 0.6670 and 0.6750.

Upcoming Events:

  • 08:30 GMT – Swedish CPI
  • 09:00 GMT – Italian Industrial Production
  • 09:00 GMT – Norwegian CPI
  • 09:30 GMT – UK Manufacturing Production
  • 09:30 GMT – UK Industrial Production
  • 15:00 GMT – UK NIESR GDP Estimate
  • 15:00 GMT – Fed Chair Yellen speaks
  • 15:30 GMT – US Crude Oil Inventories
  • 21:30 GMT – New Zealand Business PMI

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