News & Data:
CFTC Positioning Update:
It was a quiet trading session overnight with no major data releases or events. The Bank of Japan released their meeting minutes, but there were no surprises and hence no reaction in the JPY pairs. Precious metals have bounced overnight, but are still trading very close to key support levels – $1198 in Gold and $16.20 in Silver. Oil prices are slightly higher as well, with WTI back above the $50 level.
In FX, we saw tight ranges in most of the major pairs, except USD/CHF. Usually the Franc does not move a lot in the Asian trading sessions, but we have seen some decent moves in the past week. There has been a double bottom at 0.9380 and the pair has made it to a high of 0.9440 so far. Immediate resistance can be expected at 0.95, but the major level to the topside is 0.9540.
EUR/USD is near the centre of the 1.1260-1.1450 range and could be stuck in here for a while. Traders are now looking forward to Fed Chair Yellen’s testimony tomorrow as the next major event for the USD. GBP/USD is back below 1.54, but the bias remains mildly bullish as long as the pair remains above the 1.5320 support level. Immediate resistance noted at 1.5420, with 1.5480 now the next major obstacle for GBP bulls.
The Week Ahead (Key Data/Events):
Tuesday, February 24th
Wednesday, February 25th
Thursday, February 26th
Friday, February 27th