EPIC RESEARCH MALAYSIA

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1 INTERNATIONAL CURRENCY BUZZ ECONOMIC CALENDAR GBP/USD & EUR/USD HOURLY CHART EPIC RESEARCH MALAYSIA

2 INTERNATIONAL CURRENCY BUZZ Forex - Dollar Pares Gains as Fed Says Gradual Rate Hikes Appropriate Forex - EUR/USD trades around $ as the Fed Report does not lift yields Forex - GBP/USD struggles to recapture $ as soft Brexit hopes fade EUR/USD The euro slipped on Friday and is set to post its second biggest weekly loss in nearly four months as investors focused on adding hedges to their portfolios before a big week for foreign exchange markets from a European politics perspective. The outcome of the Italian general election is due on March 4 and the German Social Democrats poll of its members on joining another coalition government with Chancellor Merkel s conservatives is also due that day, two big political risk events for markets which may trigger fresh market volatility. Hedging-related strategies were popular as investors rushed to the currency derivative markets in short tenors to buy option contracts to cover the period over those two events. In a market where long euro bets are at their largest on record, according to CFTC positioning data, any less than optimal results from either of these two major political events may prompt some hedge funds to sell the single currency. GBP/USD This week s two main UK data releases both disappointed with unemployment unexpectedly ticking up and the second look at UK Q4 GDP missing expectations and turning lower. Both events would normally have prompted a small sell-off in Sterling, yet the UK currency remains relatively unchanged over the course of the week. Both events would normally see markets paring back their expectations of higher UK rates, one of the main drivers of Sterling s strength over the last month. In the background however, the ongoing EU/UK post-brexit trade talks have been taking place with less negative headlines than normal being made, adding to currency s resilience. The government s Brexit committee met late Thursday and commentary out Friday seemed to indicate that internal divisions had been put aside, for the time being at least, and that the UK was clear about what it wanted in the upcoming EU/UK trade talks.

3 ECONOMIC CALENDAR Time Cur. Event Forecast Previous Monday, February 26, :00 GBP Nationwide HPI (YoY) 3.2% 02:00 GBP Nationwide HPI (MoM) 0.6% 03:15 CHF Employment Level (Q4) 4.956M 04:30 GBP Gross Mortgage Approvals 36.1K 08:00 USD FOMC Member Bullard Speaks 10:00 USD New Home Sales (MoM) (Jan) 3.6% -9.3% 10:00 USD New Home Sales (Jan) 650K 625K 13:00 GBP BoE MPC Member Cunliffe Speaks 16:45 NZD Trade Balance (MoM) (Jan) 640M 16:45 NZD Trade Balance (YoY) (Jan) -2,840M

4 top 5 gainers IFOREX Market Insight GBP/USD DAILY CHART BUY GBPUSD ABOVE TGT SL SELL GBPUSD BELOW TGT SL EUR/USD DAILYCHART BUY EURUSD ABOVE TGT SL SELL EURUSD BELOW TGT SL

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