You can keep up to date with all the latest currency news by following the link here. The daily videos now include a support and resistance report on all the major currency pairs, along with a review of all the fundamental news and the economic calendar for the day’s trading, which is also updated at noon for the afternoon session. In addition you can also find all the latest currency prices on the live currency charts, and if you are looking for a broker, I have outlined some of the points you need to consider when looking for a good ECN broker.

Previous session overview

  • ECB chief Jean-Claude Trichet addressed the European Parliament Monday, saying the euro-zone economy has weakened since January and that there is “a high degree of uncertainty” surrounding the economic outlook. But, he said, there are no significant risks for deflation and that the central bank will do what is needed to cope with the financial crisis.
  • Trichet added that the central bank will achieve its medium-term objective, to keep inflation below but near 2%.
  • On Monday, the euro to dollar extended the decline that started at the end of last week, though at a slower pace. The pair slipped south throughout the morning session in Europe and during the early hours of US trading. Later in the session, pressure on EURUSD eased slightly (despite a credit rating downgrades of Ireland and Hungary) and the pair closed the session at USD1.3199.
  • The UK Pound was dragged lower by the Euro although held up rather well with the  EUR/GPB slipping below 0.93. UK data showed signs of stabilization with Mortgage Approvals jumping to 38k vs. 32k previously.
  • The Japanese Yen weakened against the dollar and euro in Asia on Tuesday, as Japanese importers sold the Japanese currency for book-closing on the last day of the Japanese fiscal year.
  • The Australian dollar enjoyed a fillip in Asia Tuesday, helped by marginally firmer sentiment and views that the Reserve Bank of Australia may hold rates steady at next week’s policy meeting.

Market expectation

  • The euro and dollar are higher against the yen on Tuesday following the report of Japan’s plans to buy stocks.
  • Risk appetite otherwise waned ahead of Thursday’s Group of 20 summit and European Central Bank meeting, with traders waiting to see the results.
  • USD/JPY pushing back up to retest the Asian highs at JPY98.44 as European dealers pick up on Asian rumors of dollar-yen demand for the month and quarter-end fix. Offers into JPY98.50 now under pressure, more noted into last week’s double-day highs at JPY98.85/90.
  • EUR/USD recovery off late Asia pullback – seeing lows around USD1.3215 met renewed supply around USD1.3260 (76.4% USD1.3274/1.3214), with rate currently trading around USD1.3245. Support now seen placed at USD1.3240, more at USD1.3225 through to USD1.3215. Resistance at USD1.3260, stronger between USD1.3275/80.
  • Analysts expect both the local currency and interest rate futures to ebb and flow ahead of the April 7 RBA policy meeting, with markets priced for an easing of around 25 basis points.
  • Ahead of the meeting, a key focus will be on Wednesday’s retail sales for February, analysts said, with economists expecting retail trade to have fallen by 0.3% compared with January.