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Risk-off ensued following disappointing China data, with the HSBC-Markit flash manufacturing PMI underwhelming at 48.3 in February, below the median expectation for 49.5. Japan's January trade data also showed the deficit widening more than forecast, to Y2.97 bln (a new record), while Moody's warned that China slowdown is posing risks for the likes of South Korea, Hong Kong, and Singapore. Read more
The dollar was mixed in morning trade, following in-line PPI and soft housing starts data. EUR-USD climbed marginally to 1.3765 after opening near 1.3740, while USD-JPY moved up from 10190 to highs over 102.40. USD-CAD firmed on weak Canadian data, while cable recovered the 1.67 handle. Read more
Above is a chart of the EUR/USD pair, which has hit resistance at 1.38 on three separate occasions over the last six months -- once in October and twice since last December. The question, of course, is why? Starting mid-2013, the news mix between the EU and US was decidedly stronger coming from the EU. Read more
The USD is mixed, moderately firmer against the JPY and GBP, but modestly lower versus the EUR. EUR-USD eked out a fresh high for the year of 1.3773 in the early Asia session, but couldn't maintain momentum and since settled back in the mid-1.37 levels, posting a low of 1.3745 in London. Read more
The main currencies have been pretty steady ahead of a batch of risk events on Wednesday, though risk appetite remained positive in Asia as stocks were generally higher across the region, except Tokyo, which correction moderately after the very gains that were seen yesterday. Read more
The dollar was mostly lower in N.Y. trade on Tuesday, taking EUR-USD to one-month highs over 13770, and seeing USD-JPY give back some of its post BoJ gains, settling in near 102.30. USD-CAD was a bit softer on better risk taking, and higher commodity prices, though remained solidly inside of recent ranges. Read more
Above is a chart of the pound/dollar. For most of February, the pound has been rallying versus the dollar, rising from a low of ~1.63 to a high of ~1.68 for a total trough to peak gain of about 3%. The reason for this move is the strength of UK data over that in the US. Read more
EUR-USD edged out a three-week high of 1.3734, reflecting on this occasion general euro perkiness as the dollar itself firmed against the yen, sterling and most other currencies. The euro move came despite a disappointing German ZEW survey outcome, which cited concerns about the possible global impact from the recent slowdown in U.S. Read more
The yen weakened following the BoJ announcement that it will double a funding tool to Y7 tln, which was unexpected. USD-JPY jumped to a high of 102.74, the highest level seen this month, before settling around 102.55-102.60. EUR-JPY also hit a new high for the month of 140.86. Read more
Yesterday, Japan printed a GDP Q/Q seasonally adjusted growth rate of 1%. According to Bloomberg, the market had been expecting approximately a 2.8% increase, meaning this number was a disappointment. However, a look at the details shows things aren't as bad as the headline number suggests. Here is a table from the report: On a seasonally adjusted basis, private demand increased .8%, which comes out to an annual rate of 3.2%. Read more
