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Tuesday 2 Sept. 2014 07:21

XE Market Analysis: Europe - Mar 01, 2013

Here you can find all the latest breaking forex and currency news about XE Market Analysis: Europe - Mar 01, 2013 including currency analysis and forecasts, live foreign exchange rates, central bank interest rates, and currency trading strategies from experienced fx traders and forex platforms.

The dollar and yen consolidated in quiet trade. China manufacturing PMI was in focus and both the official reading and HSBC's release came in on the weaker side, which generally weighed on equity markets. This kept EUR under the 1.3100 level, while AUD challenged the 1.0200 region. Momentum was generally low though and for the most part the G10 FX maintained the recent range. Japanese data offered justification for the easy policy stance, with deflationary pressures still evident. However, household spending and unemployment data showed some improvement on the breakdown. In New Zealand, weak Q4 terms of trade weighed on NZD early on. Elsewhere, GBP remained steady after the Liberal Democrats won the Eastleigh by-election, which was seen as a potential threat to the coalition.

[EUR, USD]
EUR-USD found a modicum of support after it was unable to clear out bids at 1.3050. It headed back to 1.3085 on light short covering, but the underlying trend should keep bias on the downside. The near-term target remains on 1.3000 barriers and downside hedging has been prevalent as option names hedge gamma.

[USD, JPY]
USD-JPY was unable to sustain Thursday's N.Y. highs and eased into the 92.40 region versus yesterday's 92.85 peak. JPY is more balanced at current levels and with Kuroda nominated as BoJ Governor the next potential focus is how aggressive he may be to fulfill the 2% CPI pledge. Japanese data today supported the dovish policy stance, which should keep USD-JPY risk on the topside. However, March is often a difficult month to judge due to potential yen repatriation flows related to the Japanese fiscal year-end, which could absorbed good periods of yen selling.

[GBP, USD]
Cable maintained a supportive tone relatively close to the 1.5200 region. Since it broke the 1.5100 it has experienced decent periods of buying interest. Repositioning by specs has been a feature, along with increased corporate demand for sterling as current levels are attractive for repatriation and longer-term positioning. The fundamental backdrop is still poor, which has put a top in place, but overall there are signs that economic fundamentals are stabilizing.

[USD, CHF]
EUR-CHF is firmly above 1.2200 after it benefited from a USD-CHF break of range. The dollar pairing squeezed up through 0.9350 and extended just above 0.9370 on general dollar strength. It is possible that the U.S. sequester could keep the dollar supported into the weekend before risk appetite sets in again. Also weighing on the risk backdrop was disappointing China manufacturing PMI and eurozone data should also come in on the weaker side today.

[USD, CAD]
USD-CAD is supportive after it broke to new trend highs over 1.0310 late on in the North American session. The pullback in risk appetite should add traction to the move, but it is territory where both fund names and option accounts are likely to cap gains ahead. Buyers are likely into 1.0270-80 and the 1.0250 area, intra-day.

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  2. Fundamental Forecast: A Volatility Shift as Rate Decisions, NFPs Approach
  3. GBP/USD Above 1.6600 Despite Manufacturing PMI At A 15-Month Low
  4. Euro Remains Vulnerable After Sinking to One-Year Low vs. US Dollar
  5. AUD/USD Range May Remain As Dark Cloud Cover Rolls In
  6. GBP/USD Grinds Higher With A Piercing Line Pattern In Its Wake
  7. NZD/USD Mounting Another Assault On 0.8400 Following Hammer Pattern
  8. USD/CAD At A Crossroads As A Hammer Emerges At Critical Support
  9. USD/JPY Probing Above 104 As Bullish Engulfing Formation Emerges
  10. EUR/USD Nears 1.3100 Floor With Bullish Candlesticks Absent
  11. Gold and Silver Tug-Of-War Continues, Palladium Cracks $900 Hurdle
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  13. US Dollar Technical Analysis: Topping Signal Remains Intact
  14. EUR/USD Technical Analysis: Euro Sinks to One-Year Low
  15. USD/JPY Technical Analysis: August High in the Crosshairs
  16. GBP/USD Technical Analysis: Bottom Confirmation Pending
  17. USD/CHF Technical Analysis: Long Position Remains in Play
  18. USD/CAD Technical Analysis: Support Held Above 1.08 Mark
  19. EUR/GBP Technical Analysis: Waiting for Selling Opportunity
  20. AUD/USD Technical Analysis: Topping at Channel Resistance?
  21. NZD/USD Technical Analysis: Bottom Forming Above 0.83?
  22. EUR/JPY Technical Analysis: Targeting February Swing Low
  23. GBP/JPY Technical Analysis: Flirting with Upside Breakout
  24. Weekly Trading Forecast: NFPs, An ECB Rate Decision and Return of Liquidity
  25. Euro Bears Shouldn?t Expect QE from ECB This Week
  26. BRICS Nations Deal with Waning Growth, Rising Inflation
  27. AUD Braces for Volatility on Torrent of Top-Tier Events
  28. Weekly Trading Forecast: NFPs, An ECB Rate Decision and Return of Liquidity
  29. Dollar Traders Look Ahead to a Return of Liquidity and NFPs
  30. GBP/USD Needs Greater BoE Dissent to Breakout of Bearish Trend