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Currency Analyst since 2010

Feb. 5: MARKET OVERVIEW

FXBAZOOKA.com - The euro was hit as the European Central Bank said it would not accept Greek bonds as collateral. EUR/USD fell to the levels just above 1.1300. EUR/CHF slid below 1.0500.

The ECB’s decision was also negative for the market’s risk sentiment. Asian shares declined. USD/JPY has once again lowered to support in the 117.00 area. Traders are awaiting the release of American unemployment claims later today (12:30 GMT) as a preview to Friday's all important non-farm payrolls data (NFP).

Chinese equities, however, managed to rise as China’s central bank cut the level of reserves banks must hold in order to encourage lending and economic growth. AUD/USD and NZD/USD edged a bit higher. Australian retail sales grew less than expected.

Another negative development for the mood of the bulls was the decline in crude oil price after the US announced that that its oil inventories reached a record high.

GBP/USD is trading in the 1.5200 ahead of the Bank of England’s meeting. The central bank is expected to leave policy unchanged.

Here are the main events to watch today (see more in the economic calendar):

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