News & Data:
CFTC Positioning Update:
EUR/USD opened around 1.1395 on Sunday and spent most of the Asian session in a 1.14-1.1420 range. The EuroGroup finance ministers are meeting again today to discuss Greece and price action in the EUR pairs is likely to remain quiet until then. GBP/USD started the week about 40 pips higher from the Friday close after some hawkish comments from a MPC member over the weekend. Key support now at 1.5350, with the next major resistance level seen at 1.55.
USD/JPY is under pressure again. The 118.30 support level held once again, but price action looks weak and it seems like we will see a break lower quite soon. GDP data out of Japan was bad, with the quarter-on-quarter figure at 0.6 % vs 0.9 % expected. A break sub-118.30 would pave the way for a test of the 117.20/30 support area.
The commodity currencies were well bid overnight. The New Zealand Dollar rallied after strong retail sales data, which helped the Aussie Dollar to rise vs the USD as well. NZD/USD made it above 0.75 and the next major resistance level lies now at 0.7620. AUD/USD almost hit 0.78 overnight as the short covering continues. USD/CAD is trading lower amid broad USD weakness and rising Oil prices.
Looking ahead, there are no important data releases today, so the focus will be on the EuroGroup meeting. In the US, there is a public holiday (Presidents‘ Day).
The Week Ahead (key data/events):
Tuesday, February 17th
Wednesday, February 18th
Thursday, February 19th
Friday, February 20th