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- Mar, 22 Dollar, Yen Gain on Risk Aversion as Asian Stocks Drop Most in a Month
- Mar, 19 British Pound Declines After BOE’s Sentence Sees Risk of ‘Double Dip Recession’
- Mar, 18 Euro Leads Major Currencies Lower on Rumors Greece to Seek IMF Aid
- Mar, 17 British Pound Takes Center Stage Ahead of Bank of England Minutes, Jobs Report
- Mar, 16 Euro Volatility Likely on German ZEW Survey, EU FinMin Summit Outcome
- Mar, 15 US Dollar Rises on Safety Demand as China’s PM Wen Warns of “Double Dip”
- Mar, 12 Japanese Yen Sold on Currency Intervention Threat, BOJ Easing Rumor
- Mar, 11 Swiss Franc May Turn Volatile Against Euro as SNB Announces Monetary Policy
- Mar, 10 British Pound Little Changed in Asia, Industrial Production on Tap Ahead
- Mar, 09 Pound Declines on Soft Retail Sales, House Prices Data and Bank Downgrade Scare
- Mar, 08 Euro May Rise Against US Dollar Amid Fading Greece Concerns, Risk Recovery
- Mar, 05 Currency Markets Mark Time in Asian Trade Ahead of US Jobs Report
- Mar, 04 Euro Looks to ECB Take on Greece, Pound Vulnerable on Dovish BOE
- Mar, 03 Euro, Pound Gain as Greek Spending Cut Rumors Stoke Risky Assets
- Mar, 02 Currency Markets Not Impressed as Australia Raises Interest Rates to 4%
- Mar, 01 Euro Surges to Highest in Seven Weeks Against Pound on Greek Bailout Chatter
- Feb, 26 British Pound Pulls Back as Traders Brace for the Fourth-Quarter GDP Report
- Feb, 25 Dollar, Yen Surge as S&P Sinks Risky Assets with Greek Downgrade Threat
- Feb, 24 US Dollar Declines Against Major Currencies Ahead of Bernanke Testimony
- Feb, 23 Euro May Gain Against US Dollar on German IFO Survey, Risk Appetite
The British Pound may continue to recover in European trading hours with December’s UK Retail Sales expected to post the largest monthly increase in eight months and as traders book profits heading into the end of a volatile week in the currency markets.
Key Overnight Developments
• Aussie, NZ Dollars Rebound as China Reaffirms Loose Monetary Policy
• Euro, British Pound Rise as US Dollar Corrects Lower After Recent Gains
Critical Levels
The Euro corrected higher, adding 0.4% overnight against the US Dollar. The British Pound followed suit, as much as 0.3% against the greenback. We remain short EURUSD at 1.4881.
Asia Session Highlights
An uneventful economic calendar gave currency markets an opportunity to digest recent volatility, with muted trading seen across most of the majors. The US Dollar traded broadly lower, slipping -0.2% on average against its top counterparts to correct some the sharp bullish momentum seen in recent days. The Australian and New Zealand Dollars outperformed, adding 0.8% apiece against their US counterpart after Chinese central bank chief Zhou Xiaochuan reaffirmed his country will maintain a moderately loose monetary conditions, adding that policymakers will focus on flexibility and aim to both support growth and control inflation expectations. The high-yielding currencies sank along with the spectrum of risky assets yesterday amid fears that the Asian powerhouse may boost efforts to restrict lending to prevent the buoyant economy from overheating after growth and inflation figures topped expectations.
Euro Session: What to Expect
UK Retail Sales figures present the only meaningful bit of event risk on the economic calendar. Expectations call for sales to rise 1.1% in December, the biggest monthly gain since March 2009. The annual growth rate is expected to slow down a bit to 3.0%, but taken together with the previous two months the outcome nonetheless amounts to the best quarter of retail activity in a year and a half. The British Retail Consortium (BRC) revealed similarly strong results in their Retail Sales Monitor two weeks ago, with BRC director Stephen Robertson saying the holiday shopping season was “stronger…than we dared hope for.” The outcome may help to give a bit of a lift to the British Pound – the UK slid against the US Dollar and Japanese Yen amid renewed risk aversion and traders may see the relatively tame economic and earnings calendar to book some profits into the end of the trading week.
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