Selloff pressure maintain on risk currencies, market attention on G8
After the consolidation on risk currencies yesterday, increasing uncertainty on Greece and risk concerns on Spain bank problem continues to put pressure on the risk currencies today in Asian section.
GBP unwinds from its previous strength as the market heightens the expectation on BOE resuming the quantitative easing. Melvyn King states that quantitative easing is still on the priority list. On the other hand, JPY picked up its strength in early U.S. section yesterday because of disappointed Philly Feb Manufacturing Index, which is -5.8 instead of forecasted 10.3.
In the U.S. section yesterday, S & P also downgraded Greece long-term debt from B- to CCC and short-term rating from B to C. At the same time, Moody downgraded 16 Spanish Banks.
Technically risk currencies had been over-sold heavily; however, sentiment rule over technicals in short-term, rebound is short-life.
Canada Core CPI is the only important data today; however, markets pay more attention on the G8 Summit in the next couple days. Core CPI is expected to be 0.2% comparing to 0.3% previous.
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