By: Alex Brandt
Highlights
EUR/USD - Relatively unchanged
GBP/USD - Running into resistance at 1.6450
USD/CAD - Relatively unchanged
Upcoming News Events
GBP: CPI (MoM) - Market Expectations @ .3%
GBP: CPI (YoY) - Market Expectations @ 2.6%
GBP: Core CPI (YoY) - Market Expectations @ 2.3%
EUR: ZEW Sentiment - Market Expectations @ 49
CAD: Interest Rate Decision - Market Expectations @ .25%
All of the major currency pairs (except for the GBP/USD) traded in a 30 pip range during the Asian Session. The GBP/USD strengthened on possible M&A flows from a Kraft takeover of Cradbury. Talk of sell orders on GBP/USD at 1.6450. Heard some rumors for sell orders noted for EUR/USD up at 1.4410/20. Yesterday was hearing stops placed at 1.4420, but its possible they no longer exist due to EUR/USD breaking 1.4400 in Asian Session. Another point of interest is that a Chinese commerce official has said that Yuan reform would be gradual. Asian sovereign buying interest down at EUR/USD 1.4330/40, possible level of support for a EUR/USD rally. The USD/CHF has once again failed to break its 4 hour trend resistance line, I expect the currency pair to decline further coming off resistance. The SNB has yet to show themselves in the EUR/CHF, currently at 1.4742. I expect the SNB will intervene if it falls below 1.4700.