- Nikkei chalks up 0.36% loss for the day
- Chinese CB leading index up by 0.9%, downward revision in Jan figure
- S&P cuts Brazil’s credit rating from BBB to BBB-
- German Ifo business climate due today
- UK CPI to show weaker 1.7% reading
Major currencies were off to a sleepy start this Tuesday, as most pairs simply stayed confined inside tight ranges. USD/CHF moved sideways above the .8800 major psychological support while EUR/USD retreated below the 1.3850 minor psychological handle.
Data from China was weaker than expected, allowing the .9150 resistance to hold for AUD/USD. The CB leading index for February clocked in a decent 0.9% increase but the bad news is that the January figure suffered a huge downward revision from the initially reported 1.2% to 0.3%. However, the selloff among Asian equities and Aussie pairs was limited as the weak data prompted many to speculate about further easing from the PBoC or the Chinese government.
As for other emerging economies, Brazil received a credit downgrade from S&P, as the agency cut the debt rating from BBB to BBB-. S&P still maintained a stable outlook though, despite the potential for “fiscal slippage” and weaker economic growth.
The upcoming economic reports might jolt a few pairs into action in today’s London trading session, as Germany is set to print its Ifo business climate reading while the UK will release its annual CPI report. German Ifo is slated to dip from 111.3 to 110.9, which would reflect weaker business optimism and possibly push euro pairs lower. Meanwhile, UK CPI could come in at 1.7%, weaker compared to the previous 1.9% reading. A lower than expected figure might spur a sharp pound selloff, as this would deter the BOE from tightening monetary policy. Also due from the UK are BBA mortgage approvals and CBI realized sales data so watch out for some volatility!
Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!