Market Roundup
- US National Activity Index Jan 0.13, -0.07-prev
- US Existing Home Sales Jan 4.82m, f/c 4.97m, 5.07m-prev
- US Exist. Home Sales % Chg Jan -4.9%, f/c -0.8%, 2.40%-prev
- US Dallas Fed Mfg Bus Idx Feb -11.2, -4.4-prev
- MX Retail Sales YY Dec 2.4%, f/c 2%, 1.20%-prev
- MX Retail Sales MM Dec -0.8%, f/c 0%, 0.80%-prev
- Greece to send reform list to Eurogroup Tuesday, misses Monday deadline, list to include reforms to regulate tax arrears & bad loans (Greek govt official)
- Fitch Danish peg defense looks credible, but has risks, monetary easing may result in a buildup of credit risk in financial system
- US Senate to hold Fed reform hearing on March 3 (Senate aide)
- Italy minister "moderately optimistic" EU to okay budget
- Nigeria's oil minister says if oil price falls further will call extraordinary OPEC meeting
- OPEC said to Have No Plans for Emergency Meeting (BBG)
- Brazil's Levy Brazil needs to have alternatives to BNDES financing, country needs to lower external deficit by increasing domestic savings
- Banks seen agreeing on new loan to Brazil power firms by March
- Fitch- Latin American debt issuance at a standstill
- Israel CB trims benchmark rate to 0.1 pct
- No Significant Data
- No Significant Events
FX Recap
USD/CAD: Upbeat US dollar coupled with the poor performance from the crude oil prices boost USD/CAD. Pair hit fresh intraday highs beyond 1.2620 and is now returning to the 1.2580 area. Yellen's testimony and Governor S.Poloz's speech in Ottawa on "Reinventing Central Banking" will be the main events to watch. Could hit resistance at 1.2646 ahead of 1.2697 and finally 1.2772, while 1.2516 and 1.2500 offer supports.
EUR/USD: EUR/USD fell back to the mid-1.1300s during the day, but managed to bounce off session lows in the 1.1290/95 band, although the negative tone persists amidst a better performance of the dollar and rising uncertainties around Greece. Currently EUR/USD is trading at 1.1332 with resistances at 1.1430, followed by 1.1450 and then 1.1486. Supports are seen at 1.1270 and finally 1.1262. Option expiries for Tuesday Feb 24th: EUR/USD: 1.1280-85 (1.3BLN), 1.1300 (1.3BLN), 1.1315 (543M)
GBP/USD: Cable extends gains on disappointing US data. Currently, GBP/USD is trading at 1.5456, having posted a daily high at 1.5477 and low at 1.5332. If the pair breaks above 1.5475, next frontiers are at 1.5480, 1.5500 and 1.5520. To the downside, supports are at 1.5450, 1.5420 and 1.5400.
EUR/GBP: Euro still remains vulnerable despite an incipient deal in Greece. Euro faced downward pressure in the wake of disappointing German data, while the pound was among the best performers across the board. Against this backdrop, EUR/GBP hit its lowest level since Jan 2008 at 0.7325. The pair has there after pared loses slightly and it is currently trading at 0.7328. Next supports are at the 0.7325/21 zone while resistances are seen at 0.7428 and 0.7441/43.
NZD/USD: NZD was little changed as investors await US chair Yellen's address to United States lawmakers for clues as to when the US may raise interest rates. NZD/USD is currently trading at 0.7521 with a high of 0.7548 and low of 0.7487. RBNZ inflation survey tonight will be the marquee event, as the markets refuse to contemplate RBNZ easing with robust domestic demand.
