U.S. Dollar Trading (USD) risk appetite remained strong overnight with a dip in US stocks met with buyers to finish relatively unchanged. Risk currencies gained against the Dollar but USD/JPY and EUR/USD finished near opening levels. US data was mixed with the February ISM moving from 54.1 previously vs. to 52.4. The Weekly jobless Claims remained low at 351k. The Euro (EUR) a dip below 1.3300 did not last long and the pair finished at 1.3330 with some mixed news overnight. Eurobond Auctions were strong overnight and the ISDA Ruled that recent Greek Debt deal did not constitute a default. February CPI at 2.7% y/y. January Unemployment increased to 10.7% in the Eurozone.

The Japanese Yen (JPY) USD/JPY went to sleep overnight spending the whole day in 25 pip range just above the Y81 level. The crosses were a little more lively led by the AUD/JPY and GBP/JPY higher. The EUR/JPY is at the mercy of the EUR/USD which is undecided. The Sterling (GBP) The GBP/USD has taken the mantle of the strongest currency in the market with the major grinding higher to 1.5950 and gaining against nearly all the other currencies with speculators flocking to the one clear trend emerging. 1.6000 is a clear target and resistance level and could be tested in coming sessions. Australian Dollar (AUD) the AUD/USD moved back above 1.0800 and is also enjoying support as a rusk currency with commodities all stronger led by Oil and Copper. The AUD/JPY is moved to fresh year highs above Y87.60 and is very strong approaching Y88 and Y90 which have proven strong resistance in the past. Looking ahead, UK PMI forecast at 51.2 vs. 51.4 previously.

Oil & Gold (XAU) Gold bounced back above $1700 and then $1720 in Asia yesterday before settling into a tight range for the rest of the day recovering from the heavy sell off on Wednesday. OIL/USD grabbed the spotlight as rumors spread throughout the market that a pipeline had exploded in Saudi Arabia and this sent the price above $110 briefly before denials saw the energy fall back to $108 a barrel.

Pairs to watch

OIL/USD more volatility or news on rumors of pipeline explosion

GBP/USD ready for 1.6000 test?

TECHNICAL COMMENTARY

Currency

Sup 2

Sup 1

Spot

Res 1

Res 2

EUR/USD

1.3231

1.3291

1.3315

1.3487

1.3548

USD/JPY

79.86

80.02

81.15

81.39

82.23

GBP/USD

1.5800

1.5897

1.5955

1.5991

1.6050

AUD/USD

1.0598

1.0729

1.0800

1.0856

1.1007

XAU/USD

1680.00

1690

1718

1750

1802

OIL/USD

105.00

108.00

108.70

110.00

112.00