Currency snapshot (major pairs)

Dollar index trading at 100.62 (+0.09%)

Strength meter (today so far) – Euro -0.20%, Franc -0.17%, Yen +0.52%, GBP -0.50%

Strength meter (since last week) – Euro +0.18%, Franc +0.27%, Yen +0.31%, GBP -0.40%

EUR/USD –

Trading at 1.065

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 – 1.11, Medium term – 1.084, Short term – 1.084

Economic release today –

• Current account for December came at €47 billion.

Commentary –

• The euro has once again moved to consolidation phase.

GBP/USD –

Trading at 1.242

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 –

• Retail sales declined by 0.3 percent in January, up 1.5 percent from a year ago. Sales excluding fuel are up 2.6 percent from a year ago.
• Construction output is up 1.3 percent from a year ago.

Commentary –

• The pound is the worst performer of the day as retail sales declined sharply. We expect the pound to reach parity in the longer run.

USD/JPY –                      

Trading at 112.7

Trend meter –

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

Support –

• Long term – 98, Medium term – 105, Short term – 112

Resistance –

• Long term – 121, Medium term – 120, Short term – 119

Economic release today –

• NIL

Commentary –

• The yen turned from the worst to the best performer as dollar declined and equities retraced.

USD/CHF –        

Trading at 1.001

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 –

• NIL

Commentary –

• Franc is down in line with the euro.  Active call -Franc might decline to 1.08 per dollar. Target extended to 1.14