Currency snapshot (major pairs)

Dollar index trading at 101.88 (+0.50%)

Strength meter (today so far) – Euro -0.35%, Franc -0.42%, Yen -0.58%, GBP -0.53%

Strength meter (since last week) – Euro -0.25%, Franc -0.54%, Yen -1.59%, GBP -1.14%

EUR/USD –

Trading at 1.053

Trend meter –

• Long term – Sell, Medium term – Sell, Short term – Sell

Support                      

• Long term – 1.01, Medium term – 1.032, Short term – 1.032

Resistance –

• Long term – 1.09, Medium term – 1.07, Short term – 1.07

Economic release today –

• Markit manufacturing PMI came at 55.4 in February.

Commentary –

• The euro is the best performer of the week so far but it is down against the dollar.

GBP/USD –

Trading at 1.231

Trend meter –

• Long term – Sell, Medium term – Sell, Short term – range/buy

Support –

• Long term – 1.16, Medium term – 1.2, Short term – 1.2

Resistance –

• Long term – 1.32, Medium term – 1.27, Short term – 1.27

Economic release today –

• Markit manufacturing PMI declined to 54.6 in February.
• M4 money supply rose to 7 percent y/y in January.

Commentary –

• The pound suffered a major setback as data continue to pose weakness. We expect the pound to reach parity in the longer run.

USD/JPY –                      

Trading at 113.7

Trend meter –

• Long term – Sell, Medium term – Range/ Buy, Short term – sell

Support –

• Long term – 107, Medium term – 109, Short term – 112

Resistance –

• Long term – 121, Medium term – 119, Short term – 115

Economic release today –

• Nikkei manufacturing PMI for February declines to 53.3 in February.

Commentary –

• The yen is the worst performer of the week as the equities rise and the dollar strengthens.

USD/CHF –        

Trading at 1.011

Trend meter –

• Long term – Buy, Medium term – Range/Buy, Short term – Range/sell

Support –

• Long term – 0.95, Medium term – 0.95, Short term – 0.98

Resistance –

• Long term – 1.08, Medium term – 1.037, Short term – 1.037

Economic release today –

• UBS consumption indicator rose to 1.43
• SVME PMI in February improved to 57.8 in February.

Commentary –

• The strong dollar is pushing the franc lower below parity.  Active call -Franc might decline to 1.08 per dollar. Target extended to 1.14