Currency Tech

R 2: 1.3250
R 1: 1.3000
CURRENT: 1.2875
S 1: 1.2800
S 2: 1.2680

R 2: 87.20
R 1: 86.80
CURRENT: 86.05
S 1: 85.00
S 2: 84.50

R 2: 1.5980
R 1: 1.5800
CURRENT: 1.5628
S 1: 1.5575
S 2: 1.5480

R 2: 0.9200
R 1: 0.9070
CURRENT: 0.9023
S 1: 0.8925
S 2: 0.8810

Market Brief

The JPY fell for a second day on speculation Japan will take steps to curb gains in the currency that are hindering the nation's economic recovery heading for its first five-day loss in three weeks against the USD after minutes from the BOJ's last meeting showed policy makers sounded alarm about the currency's strength. The EUR ended four days of losses before a report forecast to show growth accelerated in the EU and the NZD surged as a report showed retail sales climbed at the fastest pace in more than three years.

The USDJPY gained to 86.06 after reaching 84.73 on Aug. 11, the weakest since July 1995 while EURJPY climbed to 110.70 and EURUSD to 1.2862. Some Bank of Japan board members said the central bank needs to closely monitor the effect of a stronger JPY and falling stock prices on the economy, according to the minutes of a July 14-15 meeting published today.The EURJPY pared its weekly decline to 2.5% on speculation Europe's economic recovery is gaining momentum as reports will probably show the EU GDP grew 0.7% (prev. 0.2%) in Q2 while German GDP likely rose 1.3% (prev. 0.2%) due today. The market has got to be wary of European and German Q2 GDP which could surprise on the topside with a very low currency helping exporters.

NZDUSD advanced to 0.7138 after it reached as low as 0.7066, the least since July 20 losing 2.7% this week and NZDJPY jumped to 61.47 by the most in more than a week after the government said Q2 retail sales climbed at the fastest pace since 2007. The NZDJPY snapped four days of losses as sales rose 1.3% (exp. 0.3%) beating expectations. The AUDJPY pared a weekly decline as Asian shares snapped a four-day loss and advanced to 77.60 as the BOJ said board members last month indicated they were worried about the JPY's advance. AUDUSD was at 0.9014 and has fallen 1.8% this week.

Other important news for the day would be the US consumer prices excluding fuel and energy or core rate probably rose 0.1% MoM (prev. 0.2%) and Retail sales set to advance for the first time in three months rising 0.5% after declining 0.5% the previous month. Japan's GDP growth slowed to an annualized 2.3% in Q2, from 5% the previous quarter, according to a report on Aug. 16.