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12 Mar 2013
Forex: EUR/JPY back to daily losses on US session
Having moved back to its daily opening price area, to as high as 125.78 right as NY markets opened, the EUR/JPY started its profit taking process that has reached the 125.00, and now the 124.68 session low.
Japan's consumer confidence rose from 43.3 to 44.3 in February. The BSI Large All Industry survey improved to 1.0 in 1Q from -5.5 in 4Q 2012, while the Large Manufacturing survey improved from -10.3 to -4.6. “These point to a bit of an improvement coming through in the real economy early this year”, wrote Rabobank analyst Adrien Foster. “It’s interesting that Manufacturing is weaker than the All Industry index and this points to the services sector doing better overall. The weaker yen would boost manufacturing more through its export focus”, Foster added.
Just published was Italy CPI, at 0.1% (MoM) and easing from from 2.2% to 1.9% in February (YoY), as expected. The EU normalized figure made no surprise by dropping from 2.4% to 2.0%.
Germany WPI came in at 0.1% in February (MoM), below 0.3% consensus. CPI and HICP came in at 0.6% and 0.8%, respectively, as expected. France current account deficit widened from €-3.8B (revised from €-3.6B) to €-5B in January.
UBS analysts are bullish: “The next strong resistance is at 127.71-127.92, a break above would open 132.05”, wrote analyst Gareth Berry, pointing to support at 123.81 ahead of 121.77.
Japan's consumer confidence rose from 43.3 to 44.3 in February. The BSI Large All Industry survey improved to 1.0 in 1Q from -5.5 in 4Q 2012, while the Large Manufacturing survey improved from -10.3 to -4.6. “These point to a bit of an improvement coming through in the real economy early this year”, wrote Rabobank analyst Adrien Foster. “It’s interesting that Manufacturing is weaker than the All Industry index and this points to the services sector doing better overall. The weaker yen would boost manufacturing more through its export focus”, Foster added.
Just published was Italy CPI, at 0.1% (MoM) and easing from from 2.2% to 1.9% in February (YoY), as expected. The EU normalized figure made no surprise by dropping from 2.4% to 2.0%.
Germany WPI came in at 0.1% in February (MoM), below 0.3% consensus. CPI and HICP came in at 0.6% and 0.8%, respectively, as expected. France current account deficit widened from €-3.8B (revised from €-3.6B) to €-5B in January.
UBS analysts are bullish: “The next strong resistance is at 127.71-127.92, a break above would open 132.05”, wrote analyst Gareth Berry, pointing to support at 123.81 ahead of 121.77.