Currency snapshot (major pairs)

Dollar index trading at 101.44 (+0.51%)

Strength meter (today so far) – Euro -0.62%, Franc -0.59%, Yen -0.42%, GBP -0.36%

Strength meter (since last week) – Euro -0.67%, Franc -0.84%, Yen -1.14%, GBP +0.17%

EUR/USD –

Trading at 1.054

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 –

• Flash manufacturing PMI for February came at 55.5
• Services PMI came at 55.6

Commentary –

• The euro is declining fast against the dollar as political uncertainties weigh.

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 –

• Public sector net borrowing came at £9.824 billion.

Commentary –

• The pound is the only major still positive against the dollar this week. 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 – 98, Medium term – 105, Short term – 112

Resistance –

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

Economic release today –

• Nikkei manufacturing PMI for February improves to 53.5

Commentary –

• The yen is the worst performer of the week as risk aversion fades with rise in equity prices.

USD/CHF –        

Trading at 1.009

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 –

• Trade balance reached record high of 4.73 billion in January.

Commentary –

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