Forex - EUR/USD, USD/JPY Flows: Yellen says rates will go up ... but we know that


 15:25 (GMT) 14 Feb

  [Forex Flows]

Sample Premium Content
EUR/USD, USD/JPY Flows: Yellen says rates will go up ... but we know that (0100-LLGY-C01)

The market got very excited when Fed Chair Yellen said that we are likely to see a hike over the next few FOMC meetings, but we knew that already (didn't we) and in this writer's view we are no further forward on timing than we were. She does say that upcoming inflation and employment data will be closely watched and that rather neatly leads us into tomorrow's CPI numbers where but a strong bounce would mean the risk of core PCE prices reaching 2.0% earlier than expected. In the meantime if we don't see EUR/USD close below 1.0590 (and preferably below 1.0555) we will reserve judgement on the prospects of further near-term USD gains. PB


Forex - EUR/USD, USD/JPY Flows: Greece risks reprising the antagonistic relationship with his country's creditors


 02:39 (GMT) 13 Feb

 [Forex Flows]

BBG: With Greece poised to miss a deadline this month that would conclude a review of its latest bailout, the government of Alexis Tsipras risks reprising the antagonistic relationship with his country's creditors that nearly knocked the nation out of the common currency in 2015. Over the weekend, Prime Minister Tsipras lashed out again at the International Monetary Fund, one the institutions monitoring Greece's rescue, as the auditors insisted on legislation that would trigger further budget cuts if fiscal targets are missed. That gives Athens about a week to reconcile those differences. Even though the European institutions have disagreed with IMF projections and said Greece didn't need the extra measures to meet requirements set out in its 86 billion-euro ($92 billion) bailout, they have fallen into line to keep the fund involved, according to a person with knowledge of the talks. Blaming the IMF for the deadlock is a strategy that may not work anymore as Tsipras faces a more aligned group.

EURUSD was dragged lower by the broad USDJPY buying earlier, but the 1.0600 handle managed to hold thus far. A congruence of factors are seen dragging EURUSD lower, including political developments and broad USD selling, as well as technical indicators pointing towards more downside. A break of 1.0600 therefore seems to be more likely than not within the day. Small stops are seen below 1.0600.


CurrenciesCountriesMarket Bulletins