The US dollar was once again playing a safe haven status against major currencies, as the Euro traded in range or lost ground following news of the Greek Deal. Meanwhile crude oil prices rose more than 2% in one day reaching $105.84, its highest level in nine months.
Rise of the Asian tigers
Asian shares in contrast to currencies were trading up on strong China data, in particular the manufacturing PMI numbers which rose to a four-month high in February. The Japanese Yen rallied on the news, reaching Y80 against the USD.
Against the Euro, a look at the EUR/JPY with a short-term horizon shows that the pair lost some upside momentum with 104.65 support and slight bias to the upside. Short-term support should be found at 105.87 and 105.60.
US indices have been rallying
Meanwhile in the US the S&P is showing positive momentum with the Dow reaching the psychological 13,000 levels – highest since May 2008. At the same time Nasdaq reached its highest close since December, 2000.
NZD/USD can be an interesting contrast
Finally, a quick look at the New Zealand dollar shows that it edged higher against its U.S. counterpart on Wednesday, but gains were held back over concerns of the Greek debt crisis and European contagion. The NZD/USD hit 0.8354 during late Asian trading, the daily high but thereafter fell to 0.8344.
As always, should be an exciting day.
Written by Jason Forman – Chief analyst, Tradesmarter