Currency snapshot (major pairs)

Dollar index trading at 101.98 (+0.21%)

Strength meter (today so far) – Euro -0.06%, Franc -0.11%, Yen -0.12%, GBP +0.09%

Strength meter (since last week) – Euro -0.29%, Franc -0.59%, Yen -2.00%, GBP -1.37%

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 –

• Unemployment rate came at 9.6 percent.
• Flash consumer price inflation is up 0.9 percent in February, up 2 percent from a year ago.
• Producer price inflation in January rose by 0.7 percent, up 3.5 percent from a year ago.

Commentary –

• The euro continues to consolidate around 1.05 area, faced with a stronger dollar and political uncertainties in Europe.

GBP/USD –

Trading at 1.228

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 – 1.25

Economic release today –

• Construction PMI rose to 52.5 in February.

Commentary –

• The pound suffered further setbacks as the dollar strengthens. We expect the pound to reach parity in the longer run.

USD/JPY –                      

Trading at 114.2

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 –

• National inflation for January will be reported at 23:30 GMT, along with Tokyo inflation report and unemployment report.

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 –

• Fourth quarter GDP rose by 0.1 percent in the fourth quarter, up 0.6 percent from a year ago.
• Real retail sales declined by 1.4 percent.

Commentary –

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