Opening Comment 02.26
However price action has been quite telling, with the Euro managing to close marginally higher on the day, despite everything that was thrown at it. The major currency has been beaten down severely over the past several weeks, and we could at a minimum, be looking at the start to some form of a shorter-term base by 1.3450. Thursday’s bullish close, followed by Friday’s early break back above the Thursday high, strengthens the case for the potential rebound.
With the exception of a downgrade to the UK economy from the EC, things have been risk positive in Asia. Japanese CPI has come in not as soft as was expected, while industrial production was firmer. In Australia, private sector credit rose by more than consensus, while in New Zealand, trade data was much stronger. Meanwhile, UK GfK consumer confidence was released and managed to show a decent improvement from the previous print. On the official circuit, Japan’s Kan was out saying that further efforts were needed to avoid deflation.
Looking ahead, UK Nationwide house price (0.4% expected) are due at 7:00GMT, followed by the more important UK GDP (0.2% expected) due at 9:30GMT. Eurozone CPI (-0.7% expected) comes out at 10:00GMT, with the KOF Swiss leading indicator (1.80 expected) capping things off at 10:30GMT. All of the major currencies, with the exception of the Yen, are up against the buck on Friday, with Kiwi leading the way. US equity futures and commodity prices have managed to rebound ahead of the European open.
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