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Daily Forex Fundamentals |
Written by Swissquote Bank SA |
Feb 20 12 13:26 GMT
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China Cuts RRR
Risk appetite firmed as cut China the RRR by 50bp and Greek cabinet has approved further austerity measures of €125mio over the weekend. EURUSD consolidated its gains around the 1.3200 but momentum has clearly stalled. Greece will be the key item on the agenda of the Eurogroup today and we suspect that appetite for new positions will remain light. With issues emanating from Iran, oil continues to gain. Should Brent close above $121.00 its would clearly indicate a broader push to all time highs of $127.00 . This price action should trigger further gains in beta currencies especially those attached to commodities. Watch for CAD perform well CADJPY above 80.80 targets 82.90, while USDNOK should test 5.600 support. With traders cautious ahead of the Eurogroup meeting and the US markets closed for the holiday watch for volumes to remain low and price action subdued. |
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