Top Stories Euro rallies on hopes for EU summit on Thursday Asian equities
slightly lower but Europe up on summit hopes Oil at $72.40/bbl Gold holds
steady at $1068/oz. Overnight Eco JPY Prelim Machine Tool Orders up 192% EUR
German Final CPI -0.6% as expected EUR
Key Overnight Developments • UK Retail Sales Growth Worst in 15 Years in
January, Says BRC • RICS Survey Hints UK House Prices May Decline as Supply
Swells • Euro Rebounds Against US Dollar on Greece Bailout Speculation Critical
Levels The Euro and the British
FOREX: CREDIT DEFAULT SPREADS AND EUR/USD EUR/USD: G7 LEAVES MUCH TO BE DESIRED
GBP/USD: LEADS G7 PUSH FOR BANKING FEE USD/CAD: NEW BUBBLE IN HOUSING ?
NZD/USD: BOLLARD FINDS THAT ECONOMY IS STILL FRAGILE AUD/USD: CUTTING BACK ON
Talking Points • Japanese Yen: Weighed by Risk Appetite
• Pound: Extends Decline From Previous Week
• Euro: Investor Sentiment Unexpectedly Weakens
• US Dollar: Lack of Fundamental Releases to Give Way to Risk
Trends Euro Rebounds Despite Drop in Sentix
Top Stories Jaoanese data shows slow improvement Asia lower as week starts OIl
at $71.50/bbl Gold bounces over $1066/oz. Overnight Eco JPY Bank Lending -1.5%
vs. -1.0% JPY Current Account 1.10T vs. 1.27T JPY M2 Money Stock 2.9% vs. 3.0%
CHF Unemployment Rate
Key Overnight Developments • Japan’s Merchant Sentiment, Export Gains Fall on
Deaf Ears • Euro, British Pound Decline as Safety Demand Boosts Dollar Critical
Levels The Euro and the British Pound traded lower, slipping as much 0.3% and
0.4% respectively as
We are looking to buy the GBP/NZD if it falls to 2.2535 (Point D). Point D is
located at the convergence of the following points: 78.6% Fibonacci retracement
of XA. 161.8% Fibonacci extension of BC. AB=CD. Bullish trend line on 8hr
Chart. We will now go over what to watch for
• British Pound Sees a Critical Break against the Dollar but
Other Crosses are Holding Up • Canadian Dollar Struggles to
Capitalize on Strong Employment Data • Swiss Franc: SNB
Intervention Quickly Losing its Influence over the Market Dollar Extends its
Impressive
U.S. DOLLAR: HAVE WE HIT A CAPITULATION POINT ? EUR/USD: STRONGER ECONOMIC DATA
BRINGS REPRIEVE GBP/USD: WILL HOTTER INFALTION BE SUSTAINABLE ? USD/CAD:
SURPRISING INCREASE IN EMPLOYMENT AUD/USD: OIL PRICES
Fundamental Forecast for British Pound: Neutral - BoE left their benchmark rate
unchanged at 0.50%, while pausing the asset purchase program at £200 billion. -
Manufacturing PMI unexpectedly rose in January to 56.7 from 54.6 - U.K.
construction industry improves, as service
FOREX: CREDIT DEFAULT SPREADS AND EUR/USD EUR/USD: G7 LEAVES MUCH TO BE DESIRED
GBP/USD: LEADS G7 PUSH FOR BANKING FEE USD/CAD: NEW BUBBLE IN HOUSING ?
NZD/USD: BOLLARD FINDS THAT ECONOMY IS STILL FRAGILE AUD/USD: CUTTING BACK ON
