FOREX: EURJPY Through Thursday Lows as Multiple Factors Weigh
Feb-21 16:48
- In late trade, EURJPY is continuing to gravitate south, breaching the Thursday lows of 156.32 in recent trade. While trend signals continue to point to bearish sentiment for the cross, there are multiple factors weighing on Friday.
- The weaker-than-expected French services PMI set the tone for the single currency, and the late weakness for major US equity benchmarks has underpinned the souring risk sentiment, weighing on both EURUSD and EURJPY. Price action has since been exacerbated by the lower US yields following the soft US data and Donald Trump proclaiming that it is not important for Zelenskiy to be at the peace talks regarding the Russia/Ukraine conflict.
- EURJPY is now at the lowest since early February, as spot narrows the gap to the bear trigger of 155.61. Furthermore, a trendline drawn from the August 2022 lows currently intersects just above this point, bolstering the significance of this area of support. Clearance would resume the downtrend, and signal scope for a deeper selloff towards 154.42-1.5323.
- Aside from headline flow, attention now is on Sunday's German federal election, as well as Monday's Germany IFO Business Climate Index - whose manufacturing sub-print, contrary to its PMI equivalent, has continued to trend downwards in recent months.
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OPTIONS: Expiries for Jan23 NY cut 1000ET (Source DTCC)
Jan-22 16:39
- EUR/USD: $1.0295-00(E2.7bln), $1.0400(E1.9bln), $1.0425-40(E2.1bln)
- USD/JPY: Y155.00($1.7bln), Y156.00($987mln), Y156.15-20($561mln), Y156.50-60($734mln)
- GBP/USD: $1.2500(Gbp713mln), $1.2565(Gbp748mln)
- AUD/USD: $0.6200-05(A$1.8bln), $0.6260(A$695mln), $0.6300(A$1.1bln)
- NZD/USD: $0.5660-75(N$1.2bln)
- USD/CAD: C$1.4390-05($1.6bln), C$1.4450($1.1bln)
IRELAND: Martin Still Not Confirmed As PM After Day Of Chaos In Parliament
Jan-22 16:39
The Dáil Eireann has adjourned until tomorrow (23 Jan) after a day of political chaos amid efforts to officially confirm Micheál Martin as taoiseach (PM). The process to appoint Martin and then approve his cabinet of ministers was initially viewed to be a fait accompli after Martin's centrist Fianna Fail agreed to a programme for gov't with the conservative Fine Gael, adding the support of nine independent members (TDs) in a confidence and supply agreement.
- However, efforts by the gov't to have the Regional Independent Group and two other independent TDs sit on the opposition benches despite them being in support of the gov't raised objections from opposition parties arguing the gov't was attempting to eat into the opposition's allotment of speaking time in parliament.
- Ceann Comhairle (Speaker) Verona Murphy had to suspend the session on numerous occasions amid chaos on the chamber floor with opposition parties vocally objecting.
- Machinations within the various independent groups in the Dáil could deny some independent TDs that are part of the Regional Independents speaking time, a major blow to their position in gov't.
- This leaves the caretaker gov't in place since the Nov 2024 election still in power and further delays the new gov'ts ability to begin work on major policy action - most notably the impact of Trump admin policies on Ireland's status as a hub for US multinationals.
FED: US TSY 17W BILL AUCTION: HIGH 4.205%(ALLOT 78.60%)
Jan-22 16:32
- US TSY 17W BILL AUCTION: HIGH 4.205%(ALLOT 78.60%)
- US TSY 17W BILL AUCTION: DEALERS TAKE 35.29% OF COMPETITIVES
- US TSY 17W BILL AUCTION: DIRECTS TAKE 4.22% OF COMPETITIVES
- US TSY 17W BILL AUCTION: INDIRECTS TAKE 60.49% OF COMPETITIVES
- US TSY 17W BILL AUCTION: BID/CVR 3.28
