Market Roundup
- Swiss National Bank sight deposits at 384.920 bln SFR in week ending Feb 13 vs 384.889 bln SFR a week earlier.
- Japan PM Abe: Expect BOJ to communicate effectively with markets, act in accordance with its stance of adjusting policy as needed in response to upside, downside risks; hope BOJ steadily continues bold monetary easing to achieve its price target.
- Germany's Schaeuble says we don't want a Greek exit from the Euro Zone.
- Russian rouble 1 pct stronger vs dollar at market opening.
- European Union Dec Eurostat Trade NSA, increases to 24.3 bln eur (consensus 20.5 bln eur) vs previous 20.0 bln eur.
- Euro Zone Nov Trade Balance revised to 21.2 bln euros (previous 20.0 bln).
- India's Jan WPI Inflation at -0.39 pct y/y (Dec WPI was at 0.11 pct).
Economic Data Ahead
- No major economic events scheduled for release due to U.S. market holiday on account of President's Day.
FX Recap
EUR/USD stays high in the early European session, clinging on to gains from the Asian session as investors now focus on Greece and Eurozone's efforts to find a solution and the outcome likely to be announced later in the day. It now trades 0.23% higher at 1.1414, nearing intraday highs hit during Asian trading hours at 1.1422 levels. Immediate resistance is seen at 1.1443 (Feb 13 High) levels, above which it could extend gains to 1.1486 (Feb 4 High) levels. On the downside, support is located at 1.1378 (Feb 13 Low) levels, further below at 1.1315 (Feb 4 Low) levels. Option expiries at 1.1300-10 (781m), 1.1350 (379m), 1.1450 (686m).
USD/JPY traded around 118.59, closer to the level at which it closed during last week. Market expectations that the yen would fall has faded in recent weeks as the BOJ has refrained from indicating that it was considering further monetary stimulus. Moreover, its holiday in U.S. today which implies that in the US session there will not be significant economic indicator releases and trading is expected to be light. Option expiries at 117.00 (2.2bln), 117.50 (357m), 18.60 (228m), 118.85 (503m).
AUD/USD hit the session's high at 0.7795 during late Asian trading hours and subsequently moved to 0.7781. It was likely to elicit support at 0.7691(Feb 11 low) and resistance at 0.7843(Feb 10 high). Option expiries at 0.7675-85 (2.7bln).
GBP/USD stayed above the 1.54 level in the European session, reverting from fresh seven week highs at 1.5440, posted after the BOE's inflation report released last week fuelled speculations of an earlier hike in rates than expected. The pair's move in the early European session was mainly on expectations of a lift-off in interest rates in BOE's next meeting. Immediate resistance is located at 1.5440, above which it could extend gains to 1.5500 levels. On the downside side, pair sees support at 1.5394, below which losses could be extended to sub 1.5367 (5-DMA) levels. Option expiries at 1.5400 (295m).
USD/CHF trades lower at 0.9304, down 0.14 percent, in the European trading hours, wiping out partial losses from the previous session and edging closer to session highs at 0.9326 posted sometime back. The US dollar regained strength against major peers as investors prefer to hold the currency amid Greek jitters. On the topside, the immediate resistance is seen at 0.9338 levels and above which gains could be extended to 0.9347 levels. On the flipside, support seen at 0.9263 levels and further below that at 0.9224 levels. Option expiries at 0.9225 (220M), 0.9000 (887M).
