FXstreet.com (Barcelona) - After band trading with risk to the
downside in the early going of the Asian session, a subdued Euro
was underpinned by Chinese officials late in the session, after
reiterating its ongoing support to stabilize European markets. In
Japan, as widely expected, BOJ kept rates unchanged at 0.1%,
tensions in the Korean peninsula eased, while RBA minutes stated
its policy to be appropriate.
EUR/USD rose with impetus nearly 60 pips on heavy buying, moving
away from 1.3110 lows to reclaim 1.3175/80 by session end. GBP/USD
also broke higher to 1.5550 as it lagged the Euro. The Aussie was
too benefited by the improved Euro performance, with the price
topping at 0.9970. Nikkei stood at +1.2%, HK +1.1%, Shanghai +1%,
Korea +1.2% while Gold $1387/oz.
In Europe, bad news for the Euro kept poring, as Moody's listed
Portugal on review for possible downgrade. German January Gfk
consumer confidence lowered marginally to 5.4. In the UK, worst
public finance data in years took a beating on the Cable. PSNB came
out at 22.774 bln, against forecast 17.0 bln.
EUR/USD had marched up to get confronted with 1.3200, where selling
orders turned out to work effectively, sending the pair back down
progressively, finding some support at 1.3150. As comment, GBP/USD
suffered strong selling, bottoming near 1.5450. EUR/GBP peaked at
0.8520, from where a retreat sent the price to 0.8480. USD/JPY was
solid at 83.65, while EUR/CHF kept making record lows. Bourses
rallied, FTSE-100 +1.02%, DAX +0.85%, CAC-40 +1.09%.
In the US, Canadian retail sales improved while the CP data
disappointed. It was also reported that the Irish Supreme Court may
delay bank restructuring on discrepancies in the form of the Irish
banking bailout bill. No more relevant news were out. Should be
noted the impressive performance from the CHF once again, as the
market seems unwilling to stop the heavy bid tone.
EUR/USD came back to session lows, even breaking lower past 1.3100.
I t eventually found support at 1.3075. GBP/USD consolidated losses
around 1.5460. USD/JPY finished at 83.75, AUD/USD came very close
from reaching parity again. Gold stood at $1,385/oz. In Wall
Street, the Dow rose 0.49%, the Nasdaq +0.67%, S&P 500