Market Roundup
- US Initial Jobless Claims w/e 283k, f/c 293k, 304k-prev
- US Jobless Claims 4-Wk Avg w/e 283.25k, 289.75k-prev
- US Continued Jobless Claims w/e 2.425m, f/c 2.374m, 2.367m-prev
- US Leading Index Chg MM Jan 0.2%, f/c 0.3%, 0.40%-prev
- US Philly Fed Business Indx Feb 5.2, f/c 9.3, 6.30-prev
- US Philly Fed 6M Index Feb 29.7, 50.90-prev
- US Philly Fed Capex Index Feb 20.9, 13.20-prev
- US Philly Fed Employment Feb 3.9, -2.00-prev
- US Philly Fed Prices Paid Feb 4.7, 9.80-prev
- US Philly Fed New Orders Feb 5.4, 8.50-prev
- EIA- US weekly crude stocks up 7.7m bbls vs f/c of 3.2m bbls build
- German finance ministry says Greek proposal insufficient, does not correspond to criteria agreed on Monday by Eurogroup
- Germany calls Greek loan request letter a "Trojan horse"
- German Econ Min says Greek proposal can only be a first step
- S&P says Greek exit from euro zone would have limited direct contagion risks for other sovereign ratings, financial burden of a 'Grexit' on remaining 18 EZ sovereigns would be moderate and absorbed over decades
- Greek central banker Stournaras says deposit outflows "under control"
- ECB's Weidmann ECB could accept Greek bonds again if conditions met
- IMF says all parties seek to avoid risks to system from Greece
- Greek leader welcomes existing Chinese investments, room to increase cooperation in infrastructure, transport
- ECB minutes there was broadly shared view that conditions were in place for mon policy action at Jan 22 meeting, some members saw no urgent need to act at Jan 22 meeting
- ECB's Praet warned of risks of delaying money printing in Jan
- ECB's GC agreed on risk sharing with bond buys according to capital key
- U.S. Treasury's Sheets warns against overreliance on exports
- U.S. Treasury's Sheets China has stopped intervening in FX market
- Bk of Canada Mar 4 rate decision to be based on careful examination of econ, Jan cut was intended to provide insurance against downside risks to inflation profile, financial stability risks
- BOE's McCafferty immediate rate rise could de-anchor inflation expectations
- Italy's Economy minister says signal must be given that the euro is irreversible
- Mexico's Carstens says Banxico to keep close eye on peso, output gap
Economic Data Ahead
- (2035 ET/0135 GMT) Japan Manufacturing PMI Flash Feb (previous 52.2)
Key Events Ahead
- No Significant Events
FX Recap
USD/JPY: USD/JPY entered a consolidation phase during the American session after the pair regained the 119.00 level following better than expected US data. Currently the pair trades above its 100 and 200 SMAs. Technical indicators stand in positive territory. Support levels: 118.70 118.25 117.80; Resistance levels: 119.40 119.85 120.30
USD/CAD: C$ headed for a second straight day of declines on renewed weakness in crude oil prices. USD/CAD dropped to 1.2477 before dovish remarks from BoC Dep Gov Cote squeezed USD back up to 1.2517, last at 1.2496.
EUR/USD: Euro weakened after Germany rejected Greece's request for a six-month extension to its euro zone loan agreement. Optimism that Greece will reach a deal with its international lenders capped downside. Euro group meeting in focus for their next cues. If the Greek situation deteriorates EUR/USD may see a test of key support in the 1.1260/70 area. Support levels: 1.1340 1.1305 1.1280; Resistance levels: 1.1435 1.1485 1.1530.
GBP/USD: Trade-weighted sterling index hovered near a six-year high on robust UK view. GBP/USD failed to sustain gains above the 1.5450 area and pulled back, but with the downside contained by the 1.5400 level, the pair was confined to a sideways phase during the New York session amid mixed US data.1.5392 remains a weak support line with stronger support at 1.5282. Immediate resistance is at 1.5505.
EUR/GBP: Positive news out of Greece lifted the euro. EUR/GBP moved to sessio lows by 0.7358 before drifting higher to trade in a 0.7369/79 range for most of the NY session. The pair is currently trading at 0.7374. The cross remains weak as negotiation between Greece and the Eurogroup continue.
AUD/USD: The aussie dropped across the board after a warning from S&P's about the fiscal situation. AUD/USD managed to trim losses and climbed from the lowest level in two days back toward 0.7800. The pair peaked during the American session at 0.7810 but failed to hold and pulled back finding support at 0.7785.
USD/CHF: Franc was one of the weakest currencies. USD/CHF falters ahead of 0.9500, pulled back after hitting fresh recovery highs at the beginning of the American session, as the dollar surrenders some gains across the board. Downside contained by the 0.9450, the pair is currently trading at 0.9497. 61.8% retracement of the SNB move at 0.9498 may provide resistance.
