General Commentary
Last Week’s currency trading review:
The Euro: eased throughout the week to end at 1.3754, touched a weekly low of 1.3705 on continuous rumors of negative interest rate and stimulus from the ECB at this week’s meeting. Announcement from International Monetary Fund added pressure on the pair as a massive bailout of between $14 billion and $18 billion to Ukraine. If this is not handled properly, then it could be another bankrupt in the EZ.
The Yen: USD/JPY finally ended closing above the 102.50 barrier. Monthly inflation data showed that the Japanese inflation was slowly edging up but traders remain worried about this week’s sales tax increase.
The AUD edged up higher this week to trade at 0.9247 after it touched a high of 0.9295 on hopes of Chinese stimulus and positive comments from RBA Steven. The latest comment from RBA has reiterated the “comfortably on hold” theme established with the move to a neutral stance at its Feb policy meeting.
The Forex Trading Week Preview:
The States: Tuesday Yellen speaks, Wednesday ISM Manufacturing PMI (Fc 54.2 prev 53.2), ADP Non-Farm Employment Change (f/c 192K prev 139K), Thursday Trade Balace (f/c -38.3B vs -39.1B), Unemployment Claims (319k vs 311k), Friday ISM Non Manufacturing PMI (55.5 vs 55.5), NFP (196K vs 175K), Unemployment Rate (6.6% vs 6.7%).
The EZ: Monday CPI (0.6% vs 0.7%), Thursday ECB Press Conference & interest rate (0.25%),
The BOJ: Tuesday Tankan Manufacturing (19 vs 16), Average Cash Earnings (-0.1% vs -0.2%).
Australia: Tuesday RBA, Cash Rate (2.5% vs 2.5%), Wednesday Building Approvals (-1.7% vs 6.8%), Thursday Retail Sales (0.4% vs 1.2%), Trade Balance (0.82B vs 1.43B), RBA Steven Speaks.
