ECB to announce bond buying plan

<p>A busy overnight squeeze seen mainly for the Asian currencies, with Kiwi jumping as high as 0.7925 from a low of 0.7767.  The Aussie followed […]</p>

A busy overnight squeeze seen mainly for the Asian currencies, with Kiwi jumping as high as 0.7925 from a low of 0.7767.  The Aussie followed suit pushing as high as 0.8816, which was down to  good building approvals figures released overnight.  The CNH also gained against the USD in the squeeze now up 40 points against the USD.

The main talking point today will of course be the ECB rate decision and press conference. Always volatile with lots to be wary of, the rate is not expected to fall anymore as it looks that this option has been exhausted so far.  The market will be looking for the plans of the bond purchases and how it will be implemented.  Hard to know how the market will react but after the volatile session is over we may see the next direction of the euro.

In the US, the unemployment claims are to be released at an expected 299k from 293k, which will add to the guessing of non-farm payrolls tomorrow, with the ADP coming pretty much in line. The market is expecting the NFP to be around the 216k, but the last 2 months it has disappointed.



Supports 1.2580 1.2570 1.2550  | Resistance 1.2640 1.2665 1.2700



Supports 108.45 108.20 108.00     Resistance 109.15 109.75 109.85



Supports 1.6160 1.6055 1.6025  Resistance 1.6210 1.6250 1.6275



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