| Action Insight Daily Report |
Daily Report: Dollar Strengthens ahead of ECB and BoE Euro and Sterling both weaken against dollar ahead of ECB and BoE rate decision today. Dollar index is back pressing this week's high of 79.53 and is set to resume recent rally. The ECB will most likely announce to keep the main-refinancing rate at 1% at the meeting Thursday. Although economic recovery remains on track, there have been signs showing that the growth is losing steam. Therefore, there's no urgent need for the central bank to unwind its policies other than the non- standard ones. On the other hand, BoE is also widely expected to leave rates unchanged as well as pause the asset purchase program. Full Report Here... |
| Special Report |
ECB: No Urgent Needs to Tighten as Growth Seems to have Slowed Down The ECB will most likely announce to keep the main-refinancing rate at 1% at the meeting Thursday. Although economic recovery remains on track, there have been signs showing that the growth is losing steam. Therefore, there's no urgent need for the central bank to unwind its policies other than the non- standard ones. Full Report Here... 2010 Currency Outlook: CHF The SNB was one of the most aggressive central banks in implementing loose monetary policies to fight against the recent recession. Between October 2008 and March 2009, the SNB has reduced the 3-month LIBOR target rate by 250 bps to 0.25%. In March, the central bank also announced a series of liquidity provision programs including additional repo operations and purchases of Swiss franc bonds issued by private sector borrowers. The central bank also declared to purchase foreign currency on the foreign exchange market so as to prevent any further appreciation of the Swiss franc against the euro. Full Report Here... |
| Candlesticks & Ichimoku Analysis |
Trade Idea: GBP/USD - Exit Short Entered At 1.6060 With 173 Points Profit Although yesterday's anticipated fall from 1.6070 (our short position entered at 1.6060) signal the recovery from 1.5850 has ended there, break of this support is needed to confirm decline from 1.6459 has resumed and bring test of 1.5832 support. Looking ahead, only loss of latter support would retain bearishness and extend weakness towards 1.5790/00 and later 1.5750, however, oversold condition would limit downside and previous chart point at 1.5708 should remain intact. Full Report Here... Trade Idea: USD/JPY - Buy At 90.10 As dollar has retreated after rising to 91.28 yesterday, suggesting consolidation below there would take place and pullback to the Kijun-Sen (now at 90.54) cannot be ruled out, however, renewed buying interest should emerge around yesterdays low at 90.07 and the Ichimoku cloud bottom (now at 89.90) would remain intact, yield another rise later. Above said resistance would extend to 91.46 (50% Fibonacci retracement of 93.78 to 89.14) and eventual upside target remains at resistance at 91.88 but 92.01/05 (61.8% Fibonacci retracement of 93.78 to 89.14 and previous resistance) should hold on first testing. Full Report Here... |
| Featured Technical Report | Market Highlights |
AUD/USD Daily Outlook Daily Pivots: (S1) 0.8789; (P) 0.8852; (R1) 0.8892; More AUD/USD's break of 0.8779 indicates that recent fall from 0.9327 has resumed and should be targeting 0.8734 support next. As noted before, break there will confirm that whole decline from 0.9404 high has resumed and should target medium term fibonacci level at 23.6% retracement of 0.6008 to 0.9404 at 0.8603. On the upside, though, above 0.8915 will argue that a short term bottom is formed and will flip intraday bias back to the upside for stronger rebound. Read more... All Technical Outlook Reports | Daily Top Movers | Top 5 | Current | Last | Change
(Pips) | Change
(%) | | NZDUSD | 0.6941 | 0.7021 | -80 | -1.15% | | NZDJPY | 63.18 | 63.86 | -68 | -1.08% | | AUDNZD | 1.2653 | 1.2565 | +88 | +0.70% | | AUDUSD | 0.8785 | 0.8829 | -44 | -0.50% | | AUDCAD | 0.9336 | 0.9380 | -44 | -0.47% | Last Updated: Feb 04, 08:10 GMT Currency Heat Map Daily View | USD | EUR | JPY | GBP | CHF | CAD | AUD | | USD | | | | | | | | | EUR | | | | | | | | | JPY | | | | | | | | | GBP | | | | | | | | Last Updated: Feb 04, 08:10 GMT |
| Economic Indicators Update |
| GMT | Ccy | Events | Actual | Consensus | Previous | Revised | | 21:45 | NZD | Employment Change Q/Q Q4 | -0.10% | -0.10% | -0.80% | | | 21:45 | NZD | Employment Change Y/Y Q4 | -2.40% | -2.50% | -1.80% | | | 21:45 | NZD | Unemployment Rate Q4 | 7.30% | 6.80% | 6.50% | | | 0:30 | AUD | Retail Sales M/M Dec | -0.70% | 0.30% | 1.40% | 1.50% | | 7:15 | CHF | Trade Balance (CHF) Dec | 1.36B | 2.33B | 2.14B | 1.98B | | 11:00 | EUR | German Factory Orders M/M Dec | | 0.20% | 2.80% | | | 11:00 | EUR | German Factory Orders Y/Y Dec | | 9.60% | 4.50% | | | 12:00 | GBP | BoE Interest Rate Decision | | 0.50% | 0.50% | | | 12:00 | GBP | BoE Asset Purchase Target | | 200B | 200B | | | 12:45 | EUR | ECB Interest Rate Decision | | 1.00% | 1.00% | | | 13:30 | EUR | ECB Press Conference | | -- | -- | | | 13:30 | CAD | Building Permits M/M Dec | | 3.50% | -4.60% | | | 13:30 | USD | Non-Farm Productivity Q4 P | | 5.20% | 8.10% | | | 13:30 | USD | Unit Labor Costs Q4 P | | -2.10% | -2.50% | | | 13:30 | USD | Initial Jobless Claims | | 460K | 470K | | | 15:00 | CAD | Ivey PMI Jan | | 51.8 | 48.4 | | | 15:00 | USD | Factory Orders Dec | | 0.90% | 1.10% | | |
| Suggested Readings |
Fundamental Highlights Technical Highlights |
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