US session review: Yen gains

Data released:

14:00 GMT USA Housing Price Index (MoM) (Dec) 0.8% 0.4% -0.1% 

15:00 GMT USA Consumer Confidence (Feb) 78.1 80.0 79.4 

The dollar fell against most of its major peers. 

Today's economic data included two releases:

The Conference Board's Consumer Confidence Index slipped to 78.1 in February from a downwardly revised 79.4 (from 80.7) while the consensus pegged the index at 80.8. 

The December Housing Price Index from the FHFA increased 0.8%, which followed an uptick of 0.1% observed in November.

EURO

A surprise improvement in German business morale on Monday pushed the euro close to that high, but it gave up gains after European Central Bank Governing Council member Ignazio Visco said the ECB is ready to consider cutting its deposit rate into negative territory if needed.

Earlier on, German GDP figures for the last three months of 2013 left no room for surprises, expanding in line with expectations 0.4% inter-quarter. 

EUR/USD remains above $1.3700, above recent low on $1.3685 with support comes at $1.3700 (channel lien from Feb 6), then - at $1.3660, below - on $1.3550 (Feb 2 lows). Resistance comes at recent high on $1.3770. Above resistance comes at $1.3820 (Dec 30 highs) and $1.3850 (channel line).

POUND

The pound rose on Tuesday versus the dollar amid strong UK data. It seems, UK economy looks more healthy among european countries. But in NY the pound corrected.

Data wise, Mortgage Approvals tracked by BBA rose to 50K in January, surpassing both estimates and December’s reading at 47.9K and 47.1K, respectively. 

BOE's MCCafferty said that market expectations of first BOE rate hike in Q2 2015 "not unreasonable". He also said current pound level not a major problem for UK exporters. 

GBP/USD holds above $1.6600. Below support comes near yesterday’s lows on $1.6480, then - at Wednesday’s hourly lows on $1.6500. Initial resistance is at $1.6720 (Feb 21 highs). Strong resistance comes at last Monday’s highs on $1.6820.

YEN

The yen advanced the most in more than a week against the dollar amid speculation a depreciating Chinese yuan will damp global growth, boosting demand for the Japanese currency as a haven.

USD/JPY fell as low as Y102.00. Initial support comes at Y102.00, then - at Y101.20 (Feb 6 lows), then - at Y101.00. Initial resistance comes at recent highs on Y102.80. Above resistance comes at Jan 31 high on Y103.00.

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