The US Dollar rose in Asia as EU officials delayed a final deal on the second Greek bailout. S&P 500 index futures argue for more of the same ahead.
Talking Points
- US Dollar, Yen Outperform as EU Officials Delay Greek Bailout Deal
- S&P 500 Index Futures Decline, Pointing to More Risk Aversion Ahead
- ECB Monthly Report Eyed to Guide Rate Cut Bets as Growth Falters
The US Dollar and Japanese Yen rose against their major counterparts in overnight trade as stocks declined, boosting demand for the go-to safe haven currencies. The MSCI Asia Pacific regional benchmark equity index fell 0.8 percent after Eurozone officials delayed a final decision on the second Greek bailout at least until February 20. The New Zealand Dollar underperformed, weighed down by disappointing economic data. Manufacturing sector growth slowed in January according to data from Business NZ while consumer confidence dropped 2.4 percent to mark the largest drawdown in three months.
Looking ahead, S&P 500 stock index futures are pointing sharply lower in late Asian hours, hinting continued risk aversion is likely to continue driving safe-haven currencies higher in the coming session. February’s ECB Monthly Report headlines the economic calendar, with traders keen to establish how the central bank intends to meet its mandate of securing price stability as growth falters in the single currency area. Sluggish performance is likely to weigh on prices, presumably calling for additional accommodation and applying downward pressure on the Euro. The markets are pricing in a 61 percent probability of a rate cut at the next policy meeting on March 8.
Asia Session: What Happened
| GMT | CCY | EVENT | ACT | EXP | PREV |
| 21:00 | NZD | ANZ NZ Job Advertisements (MoM) (JAN) | -2.7% | - | -2.6% (R-) |
| 21:30 | NZD | Business NZ PMI (JAN) | 50.5 | - | 51.6 (R-) |
| 0:00 | AUD | Consumer Inflation Expectation (FEB) | 2.5% | - | 2.8% |
| 0:00 | NZD | ANZ Consumer Confidence Index (FEB) | 113.3 | - | 116.1 |
| 0:00 | NZD | ANZ Consumer Confidence (MoM) (FEB) | -2.4% | - | 7.1% |
| 0:30 | AUD | RBA FX Transactions (A$) (JAN) | 383M | - | 737M |
| 0:30 | AUD | Employment Change (JAN) | 46.3K | 10.0K | -35.6K (R-) |
| 0:30 | AUD | Unemployment Rate (JAN) | 5.1% | 5.3% | 5.2% |
| 0:30 | AUD | Full Time Employment Change (JAN) | 12.3K | 0.0K | 24.0K (R-) |
| 0:30 | AUD | Part Time Employment Change (JAN) | 34.0K | 7.5K | -59.6K (R-) |
| 0:30 | AUD | Participation Rate (JAN) | 65.3% | 65.3% | 65.2% |
| 4:00 | JPY | Tokyo Condominium Sales (YoY) (JAN) | 32.6% | - | 8.5% |
Euro Session: What to Expect
| GMT | CCY | EVENT | EXP | PREV | IMPACT |
| 7:00 | EUR | EU 25 New Car Registrations (JAN) | - | -6.4% | Low |
| 9:00 | EUR | Italian Trade Balance (Total) (€) (DEC) | - | -1581M | Low |
| 9:00 | EUR | Italian Trade Balance Eu (€) (DEC) | - | -386M | Low |
| 9:00 | EUR | ECB Publishes February Monthly Report | - | - | High |
| 10:00 | EUR | Italian Current Account (€) (DEC) | - | -3448M | Low |
Critical Levels
| CCY | SUPPORT | RESISTANCE |
| EURUSD | 1.2953 | 1.3157 |
| GBPUSD | 1.5634 | 1.5730 |
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow me on Twitter at @IlyaSpivak
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