The Euro rebounded yesterday against the Dollar reversing all losses from Wednesday. It was inspired by the news that the Greek banks will be receiving emergency funding – as much as 60 billion Euros from the ECB to avoid financial system failure. Also, the EU published a 180-page report and upgraded economic prospects of the Euro-area by 0.2% for both 2015 and 2016 based on the lower oil prices Euro depreciation and easing monetary policy.
The speculation that the SNB may buy some Euro again to weaken the Swiss Franc also attributed to the Euro rally. EURCHF rose to new highs of 1.06 since the big SNB event in January.
The Euro rose by 1.3% to $1.1480. The resistance above is still 1.1530, which is the bottom of the last consolidation area and the 23.6% retracement level of the falling of QE program announcement.
The Sterling jumped to a one-month high after the Bank of England policy makers maintained their main interest rate and kept monthly assets buying amount unchanged. Technically, a head-and-shoulders bottom on the daily chart of Pound Dollar has been formed and the first theoretical bull target is 1.56, the year open of 2015 and the bottom of former consolidation.
Back to the stock markets, the Shanghai Composite lost 1.18% to 3136 even after the PBOC cut the reserve rate by 0.5%. The Nikkei Stock Average lost 0.98%. Australian ASX 200 gained 0.58% again to new high 5811. In European markets, the UK FTSE was up 0.1%, the German DAX lost 0.1% and the French CAC Index rebounded 0.15%. US stocks broadly rose on upbeat unemployment claims. The S&P 500 closed 1.03% to 2062. The Dow gained 1.2% to 17885, and the Nasdaq Composite Index gained 1.03% to 4765.
On the data front, Australia RBA Monetary Policy Statement will be published at 11:30 am AEDST. U.S. and Canada monthly job market reports will be the focus of markets and out at 0:30 am AEDST.
Have a great trading day!
Anthony
NB: Please note all references to rates above are approximate
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