Single currency sell-off gathers pace -.......>

FOREX: Single currency sell-off gathers pace

- Fresh multi-year lows were printed in EUR/USD Wednesday, with focus again

turning to the EUR's role in funding EMFX carry trades. This was compounded by

more poor data out of the Eurozone, with industrial production recording the

14th straight Y/Y decline and equalling the worst outcome since the financial

crisis.

- Elsewhere, risk appetite looked much healthier, with JPY and CHF at the bottom

end of the table while equity markets gained again. US markets opened higher and

gained further still, hitting new alltime highs. This helped boost USD/JPY well

north of Y110, with technical signals now signalling the potential for a renewed

downleg in the JPY. In contrast to better equities and weaker core havens, EMFX

suffered, with TRY, BRL and HUF all notable underperformers. BRL hit a new

alltime low on dire retail sales data.

- US CPI data for January and weekly jobless claims numbers take focus Thursday.

BoC's Poloz, RBA's Lowe and ECB's Lane are all due to speak. Some attention will

likely be paid to the nominee hearings for Trump's Fed picks Shelton and Waller.