OPENING COMMENT
The overnight release of the better than expected New Zealand GDP has once again catapulted the single currency to fresh 2009 highs against the buck, above 0.7300. The market had been looking for a negative print and the +0.1%q/q result was significant in that it marked an end to the recession. Currencies in general remain very well bid against the beaten down USD, with the Euro, Swissie and Aussie extending gains to also post new yearly highs. However, technical studies remain oversold and we continue to warn of a major reversal with a pullback in the US equity and commodity markets, along with the FOMC, likely to be the main catalysts. There has been more talk against the USD overnight, with China proposing a “supra-sovereign wealth investment fund.” Elsewhere, Bank of Canada Carney has said that he sees economic growth in all major regions, but still a long way to go. Looking ahead to the European session, the BoE Minutes and Eurozone and German PMI are the main economic releases.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
If you wish to receive Joel's reports in a more timely fashion, e-mail [email protected] and you will be added to the "distribution" list.
Visit the DailyFX Forex Stream for Real-Time News and Market Updates
