FX News Today
- Global sell off in stock markets continued during the Asian session.
- Chinese markets in particular sold off after much weaker than expected trade data and a rare “sell” rating from China’s largest brokerage was taken as a sign that the government wants to limit gains on equity markets.
- The ECB’s dovish turn and sharp growth revisions have fuelled concerns about the global outlook and sparked a fresh wave of risk aversion.
- German manufacturing orders slumped -2.6% m/m in February
- GER30 slumped to 11425.00 area on the EU open.
- EURUSD plunged below 1.1200 after ECB.
- USDJPY ebbed to a 1-week low and AUDJPY saw a 2-week low, amid risk-off backdrop.
- The WTI future is trading at USD 56.38 per barrel.
Charts of the Day
Technician’s Corner
- EURUSD has consolidated around 1.12 after a post-ECB plunge into 21-low terrain. The weak bullish candles suggest a weak positive bias.
- GBPUSD is in a ranging market with immediate Resistance at 1.3100 and Support at 1.3065. Overall remains in downtrend with Momentum indicators negatively configured intraday and daily as well.
- XAUUSD reached 1293 level but remains above 1280 for 5th day which stands as a near term Support. It broke outside hourly Bollinger Bands. This could be followed by a pullback as it suggests an overextended move.
- Biggest Winner is YEN: USDJPY has dipped to 110.95 from 111.60. The pair broke the 200-day moving average and is currently retesting a cross into negative BB area. This along with a decline of positive bias in MACD and Stochastic suggest a possible turn of the outlook into a negative one in the medium term.
Main Macro Events Today
- US Housing starts – It is expected to rise 11.3% to a 1.200 mln pace in January after an 11.2% drop to 1.078 mln in December.
- US NFP – A rather solid February nonfarm payroll report is expected to be seen, even if the headline 180k job gain significantly undershoots the 304k January surge and would be the smallest gain since September.
- Canadian Labor data – Employment is expected to reveal a 20.0k gain in jobs during February after January blasted through expectations with a 66.8k increase. The unemployment rate is expected to be seen unchanged.
Support and Resistance
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Andria Pichidi
Market Analyst
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