Key overnight events:

  • The S&P 500 Index fell 1.1%, snapping a 5-day gain, on the lowest volume so far this month; energy sector led the selloff.
  • After reaching a 2-month high of $38.39/bbl, WTI futures expiring in April slid as much as 4.7%, back towards the $36/bbl handle, before finally settling 3.7% lower at $36.50/bbl. Government data on Wednesday is expected to show supplies increased, keeping stockpiles at the highest level in 80 years.
  • The Bank of England’s Governor Mike Carney commented that “Brexit” would be a risk to UK financial stability, sparking a fall in the pound for the first time in 7 days versus the dollar.
  • ECB’s rate decision is due tomorrow and analysts predict that Draghi is preparing to cut the Eurozone’s already negative deposit rate and expand the quantitative-easing program he first flagged a year ago. Economists surveyed by Bloomberg are expecting a further 10bp rate cut to -0.40%.



  • Spot 1.3869
  • USDSGD inched higher towards the 1.3900 handle after rebounding off the 7-month low on Monday.
  • The currency pair is expected to find some resistance around the 1.3950 – 1.4000 region where the 200-day moving average and a previous key resistance level reside.



  • Spot 0.7421
  • AUDUSD continues to consolidate above the 0.7400 level as it takes a breather following its recent rally.
  • Australia’s January home loans for January declined 3.9% month-on-month, worse than the 3.0% fall expected and the previous figure of a 2.7% increase.



  • Spot 1.3435
  • Bouncing strongly of the 200-day moving average yesterday, USDCAD pared losses, reaching a high of 1.3442 this morning.
  • Bloomberg strategist Vincent Cignarella wrote that 8 weeks of Canadian dollar gains and a more-than-40% recovery in WTI since February lows could dictate the tone of BoC’s forward guidance as it is expected to refrain from a rate cut tomorrow. He added that he expects Poloz to lean more towards the dovish side and buy some time until Trudeau puts forth a stimulus package within the coming weeks.



  • Spot 6.5168
  • USDCNH rose to a high this morning of 6.5186 after the PBOC set its reference rate lower for the first time in a week.
  • PBOC Deputy Governor Yi stated that China will continue implementing prudent monetary policy with a balance between tightening and easing, Xinhua reported.
  • China CPI is due for release tomorrow and is expected to remain at 1.8% year-on-year. The National People’s Congress set its CPI target this year at 3.0%.
  • Finance Ministry spokesman Ou said that China will speed up fiscal and tax reforms in 2016.



  • Spot 8.5861
  • USDNOK rose to as high as 8.5995 last night, as Norges Bank reported its regional survey output over the next 6 months at 0.11, beating estimates of 0.00.
  • The report added that there has been a “considerable fall in output” in the oil service sector, although it is still “broadly in line with previous surveys”.


© Jachin Capital Pte Ltd

UEN: 201419754M

The contents of this document are for information only and is taken or compiled from sources that we, Jachin Capital Pte Ltd, believe to be reliable. To the maximum extent permitted by law, we do not make any representation or warranty (express or implied) that this information is accurate, timely or complete and it should not be relied upon as such. Opinions expressed are our current opinions as at the date of this document only and are subject to change without notice. We endeavour to update on a reasonable basis the information discussed but regulatory, compliance or other reasons may prevent us from doing so. The publication and distribution of this document is not and does not imply any form of endorsement of any person, entity, service or product described or appearing here. This is not and does not constitute or form an offer to buy or sell nor the solicitation of an offer to buy or sell any security or financial instrument nor to participate in any particular trading or investment strategy. We are not soliciting any action based on this document. The information, services and products described or appearing here are intended only for Accredited Investors (as currently defined in the Securities and Futures Act) and are not intended for nor targeted at the public in any specific jurisdiction. This information does not take into account the particular investment objectives, financial situations or needs of individual investors. Investors should seek independent financial, tax or legal advice or make independent investigations as considered necessary or appropriate before making an investment decision. Investments involve risk. Any past performance, projection, forecast or simulation of results is not necessarily indicative of the future or likely performance of any investment instrument.

Essential SSL