Market Update – 16-02-2017

EUR/USD – broke out of the wedge after it appeared to breaking below it. However, it remains to be seen how much upside there is for the EUR as there are quite a few obstacles preventing a sustained strengthening of the EUR, also shown in the weak growth we saw in the German data. After the Dutch and French elections, it could be that some anxiety will disappear. However, we also have the Greek crisis which will get its next chapter in the next few days.

Asian Markets Advance

Japan’s GDP sent equities higher this morning. Reports showed that Japan’s GDP rose 0.2% in the fourth quarter of 2016. The growth derives from an increase in exports due to a weaker yen however, the data shows that domestic demand is lagging. Japan had a 1% GDP growth for 2016. This suggests that the Bank of Japan will not change its monetary policy in the near future.