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The US Dollar extended gains overnight with USD/JPY reaching a fresh multi-year high. Dealers report that leveraged names and momentum names continue to have good demand for the pair and the option barriers are barely any obstacle. However, they did also note that Japanese traders are rather wary of buying USD/JPY at those levels as they expect comments from officials regarding the recent JPY weakness. Looking at the charts, the next major resistance lies at the 2007 high at 124.13.
USD/CHF also remains very well bid and the pair had almost only up days after the SNB decision on January 15th led to the drop to 0.83. Resistance seen at the psychological level at 1.00, but not much in the way of a 1.02 test in the near-term. Meanwhile, the Euro is not getting any rest. QE started yesterday, which sparked demand for German bonds and added additional pressure on the EUR. Immediate support seen at 1.0750, but then not much until 1.05.
In AUD/USD, 0.7620/25 support (January low) held so far, but is looking increasingly vulnerable. Similar price action in NZD/USD, which dropped below 0.73 overnight. However, the NZD might consolidate in the near-term as traders are waiting for the RBNZ rate decision in two days.
06:45 GMT – Swiss Unemployment Rate (3.2 %)
07:45 GMT – French Industrial Production (-0.3 % m/m)
08:00 GMT – Spanish Retail Sales (2.4 % y/y)
09:00 GMT – Italian Industrial Production (0.2 % m/m, 0.1 % y/y)
09:00 GMT – Norwegian CPI (0.7 % m/m, 2.1 % y/y)
14:00 GMT – US JOLTs Job Openings (5.03mln)
14:35 GMT – Bank of England Governor Carney speaks
18:30 GMT – Bank of England MPC Member McCafferty speaks