Forex Flash: Good levels to re-enter longs on EUR/USD and EUR/JPY - NAB

NAB strategists see the drop in EUR/USD and EUR/JPY as offering good levels to re-instate long positions, "content that we are as yet a long way from needing to take a ‘sky is falling’ interpretation of the indecisive Italian election result" NAB notes.

"Fresh elections are far from a given, they argue, and it is quite possible that Mr Berlusconi and Mr Grillo, following their strong electoral showings, can achieve their aims (and which may include Mr Berlusconi wanting immunity from prosecution) without having to bring the Italian political system back to its knees" the bank adds.

Feb 27, 2013

Japan's retail trade figures above expectations

Japan's retail trade figures for the month of January came at +2.3% on a month by month basis, surpassing the +0.9% expected number. Meanwhile, the yearly read came at -1.1% vs. -1.5% y/y expected. USD/JPY traders have retaken the 92.00 handle, where the pair operates quiet after the release.

Forex: USD/JPY still capped below 92.20

With Japan retail sales just released a bit better than expected at -1.1% when consensus was calling for a -1.4%, still third month in a row with decreasing figures, coming from a previous at +0.3%, year on year, USD/JPY is little moved at 92.18, around session highs, while Nikkie index opens flat around the 11400 handle. The pair bounces from daily lows at 91.12 printed in early NY trade, but still is down for the week by -1.23% from previous weekly close Friday.