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Euro Tumbles Through Support, Canadian Surges With Oil’s Upside Breakout

Canadian Dollar is currently trading as the strongest one for today, following the upside breakout in oil price. The resilient Sterling is following as second strongest, awaiting BoE to rule out negative interest rates later in the week. On the other hand, Australian Dollar is the worst performing, after RBA pulled ahead of announcement of QE extension. Euro is the second worst, as selloff gathers pace after GDP release. Dollar and Yen are mixed for now, awaiting some more guidance from over risk sentiments.

Technically, EUR/USD’s break of 1.2052 support finally indicates resumption of fall from 1.1230. For Dollar to solidify buying, GBP/USD would need to break through 1.3608 support while USD/CAD should break 1.2880 resistance. Or, Gold would need to break 1831.16 to target a 1810.07 support and below. For Euro to solidify selloff, EUR/JPY will need to break through 126.26 minor support. EUR/CHF will need to break 1.0788 minor support.

In Europe, currently, FTSE is up 0.44%. DAX is up 1.18%, CAC is up 1.67%. Germany 10-year yield is up 0.028 at -0.485. Earlier in Asia, Nikkei rose 0.97%. Hong Kong HSI rose 1.23%. China Shanghai SSE rose 0.81%. Singapore Strait Times rose 0.72%. Japan 10-year JGB yield dropped -0.005 to 0.056.

WTI oil upside breakout, targets 55.70 first, 58.26 next

WTI crude oil breaks through 53.92 resistance to resume near term up trend today. Further rise should be seen to 61.8% projection of 47.24 to 53.92 from 51.58 at 55.70 first, and then 100% projection at 58.26.

In any case, near term outlook will now stay bullish as long as 51.58 support holds. As for the chance of taking on 65.43 medium term structural resistance, we’ll see if WTI could accelerate upwards with the current move.

Eurozone GDP contracted -0.7% qoq in Q4, EU down -0.5%

Eurozone GDP contracted -0.7% qoq in Q4, smaller than expectation of -1.8% qoq. Over the year, GDP contracted -6.8% yoy. EU GDP contracted -0.5% qoq. Over the year, EU GDP contracted -6.4% yoy.

Among the Member States, for which data are available for the Q4, Austria (-4.3%) recorded the highest decrease compared to the previous quarter, followed by Italy (-2.0%) and France (-1.3%) while Lithuania (+1.2%) and Latvia (+1.1%) recorded the highest increases. The year on year growth rates were still negative for all countries.

Also released, Italy GDP dropped -2.0% qoq in Q4, versus expectation of -2.3% qoq. France