GBP/USD retreated below 1.2750, reversing gains after soft US December core PCE inflation data. Despite the setback, the pair eyes marginal weekly gains. Meanwhile, EUR/USD stabilized near 1.0850 post-US inflation data, maintaining positive territory. AUD/USD recovered to 0.6600 on improved market sentiment ahead of US core PCE data, while USD/JPY aimed for the psychological resistance at 148.00, supported by Tokyo CPI slowing below the BoJ’s 2.0% target.
Markets In Focus Today – GBP/USD
GBP/USD Retreats Below 1.2750, And Looks To Post Small Weekly Gains.
GBP/USD lost its traction and retreated below 1.2730 after rising above 1.2750 on soft US December core PCE inflation data in the early American session on Friday. Every week, GBP/USD remains on track to post marginal gains. GBP/USD lost its traction and dropped below 1.2700 in the early trading hours of the European session on Friday. Although the near-term technical outlook is yet to highlight a build-up of bearish momentum, buyers could remain discouraged unless the pair manages to reclaim 1.2700. Upbeat macroeconomic data releases from the US provided a boost to the US Dollar (USD) during the American session on Thursday.
Technical Overview With Chart :
Moving Averages :
Exponential :
MA 10 : 1.27 | Negative Crossover | Bearish
MA 20 : 1.27 | Negative Crossover | Bearish
MA 50 : 1.26 | Positive Crossover | Bullish
Simple :
MA 10 : 1.27 | Positive Crossover | Bullish
MA 20 : 1.27 | Negative Crossover | Bearish
MA 50 : 1.27 | Positive Crossover | Bullish
RSI (Relative Strength Index): 51.13 | Buy Zone | Bullish
Stochastic Oscillator : 59.44 | Buy Zone | Neutral
GBP/USD reclaims 1.2700 amid a halted US Dollar recovery, driven by reduced expectations of an early BoE rate cut. Geopolitical tensions in the Middle East pose a potential cap on gains. Meanwhile, EUR/USD faces defensive trading near 1.0850, influenced by heightened US Dollar demand amid geopolitical concerns. AUD/USD consolidates near 0.6600 despite geopolitical risks, with attention on US jobs data. USD/JPY hovers around 147.70, with bullish momentum indicated, while technical analysis suggests potential improvement towards 148.00.
Markets In Focus Today – GBP/USD
GBP/USD Retakes 1.2700 As US Dollar Stalls Recovery.
GBP/USD is trading above 1.2700, finding fresh demand amid a stalled US Dollar recovery in early Europe on Monday. The pair cheers reduced bets for an early BoE rate cut ahead of Wednesday’s Fed decision. Middle East geopolitical tensions could cap the upside. GBP/USD lost its traction and dropped below 1.2700 in the early trading hours of the European session on Friday. Although the near-term technical outlook is yet to highlight a build-up of bearish momentum, buyers could remain discouraged unless the pair manages to reclaim 1.2700. Instead, market participants could remain focused on risk perception.
Technical Overview With Chart :
Moving Averages :
Exponential :
MA 10 : 1.27 | Positive Crossover | Bullish
MA 20 : 1.27 | Positive Crossover | Bullish
MA 50 : 1.26 | Positive Crossover | Bullish
Simple :
MA 10 : 1.27 | Positive Crossover | Bullish
MA 20 : 1.27 | Positive Crossover | Bullish
MA 50 : 1.27 | Positive Crossover | Bullish
RSI (Relative Strength Index): 52.39 | Buy Zone | Bullish
Stochastic Oscillator : 56.61 | Buy Zone | Negative
Daily FX Analysis – GBP, EUR, USD, CAD, NZD dynamics.
Introduction
GBP/USD remains range-bound above 1.2700 in anticipation of crucial decisions from the Federal Reserve and the Bank of England. The pair struggles for bullish momentum as the cautious market sentiment keeps the US Dollar resilient. Meanwhile, EUR/USD faces resistance at 1.0830, grappling to recover losses amid upward pressure on the greenback. USD/CAD trades softer, influenced by higher oil prices due to geopolitical tensions. NZD/USD attracts buyers above 0.6130, supported by additional stimulus measures in China, though caution prevails ahead of the FOMC meeting.
Markets In Focus Today – GBP/USD
GBP/USD Oscillates In The Trading Range Above 1.2700 Ahead Of The Fed, BoE Rate Decision.
The GBP/USD pair remains confined in a narrow trading range above the 1.2700 mark during the early European trading hours on Tuesday. Investors prefer to wait on the sidelines ahead of key events from the Fed and the BoE. GBP/USD continues to move up and down in a narrow band at around 1.2700 early Monday after closing the previous week virtually unchanged. The near-term technical outlook fails to provide a directional clue but the Federal Reserve’s and the Bank of England’s (BoE) policy announcements later this week could help the pair break out of its range. The cautious market mood at the beginning of the week helps the US Dollar (USD) stay resilient against its rivals and makes it difficult for GBP/USD to gather bullish momentum.
Technical Overview With Chart :
Moving Averages :
Exponential :
MA 10 : 1.27 | Negative Crossover | Bearish
MA 20 : 1.27 | Positive Crossover | Bullish
MA 50 : 1.26 | Positive Crossover | Bullish
Simple :
MA 10 : 1.27 | Negative Crossover | Bearish
MA 20 : 1.27 | Negative Crossover | Bearish
MA 50 : 1.27 | Positive Crossover | Bullish
RSI (Relative Strength Index): 51.48 | Sell Zone | Bullish
Stochastic Oscillator : 55.56 | Buy Zone | Positive
GBP/USD retreats near 1.2680 ahead of the US Fed’s rate decision amidst market caution amid Middle East tensions. With the Fed expected to maintain rates and the Bank of England’s commitment to restrictive policies, risk aversion boosts the US Dollar. Meanwhile, EUR/USD faces selling pressure, the Australian Dollar weakens on softer inflation and USD/CAD recovers above 1.3400 amid robust US economic data. The global market awaits key central bank decisions and economic indicators.
Markets In Focus Today – GBP/USD
GBP/USD Edges Lower To Near 1.2680 Ahead Of US Fed Interest Rate Decision.
GBP/USD declines on market caution due to the Middle East tension. Fed is expected to keep interest rate unchanged at 5.5% in January’s meeting. BoE is expected to maintain a prolonged period of restrictive monetary policy to curb inflation. GBP/USD extends its losses for the second consecutive session on Wednesday, inching lower to near 1.2680 during the Asian session. The risk aversion sentiment drives Investors towards the US Dollar (USD), which undermines the GBP/USD pair. US President Joe Biden has communicated that the United States will respond in a tiered approach to a specific situation following the deadly drone attack on US troops near the Jordan-Syria border.
Technical Overview With Chart :
Moving Averages :
Exponential :
MA 10 : 1.27 | Negative Crossover | Bearish
MA 20 : 1.27 | Negative Crossover | Bearish
MA 50 : 1.26 | Positive Crossover | Bullish
Simple :
MA 10 : 1.27 | Negative Crossover | Bearish
MA 20 : 1.27 | Negative Crossover | Bearish
MA 50 : 1.27 | Positive Crossover | Bullish
RSI (Relative Strength Index): 48.54 | Buy Zone | Bullish
Stochastic Oscillator : 51.85 | Buy Zone | Neutral
EUR/USD grapples near 1.0800 amidst Fed-induced US Dollar strength, with Chair Powell’s insistence on inflation aligning with the 2% target bolstering the greenback. As the market eyes EU inflation data, the pair faces renewed selling pressure, testing the 1.0800 support. Meanwhile, USD/CHF improves post-Powell’s rejection of a March rate cut, and USD/JPY struggles amid geopolitical risks and diminished prospects for a March Fed rate cut. NZD/USD edges higher post-Chinese PMI but contends with concerns over China’s economic slowdown and geopolitical uncertainties.
Markets In Focus Today – EUR/USD
EUR/USD Struggles Near 1.0800 On Fed-Led US Dollar Strength.
EUR/USD is battling 1.0800, consolidating the previous decline. Fed Chair Powell highlighted the need for inflation figures to reflect the Fed’s 2% ceiling, pushing back against early rate cut expectations and boosting the US Dollar. The focus now shifts to the EU inflation data. The bullish momentum in the US dollar sparked renewed selling momentum in EUR/USD, dragging it to the lower end of the weekly range near the 1.0800 region. Moving forward, investors’ debate is still expected to keep the door open to the first interest rate cut in March or May, with the probability of those outcomes at around 36% and 58%, respectively, according to Fed Watch Tool by CME Group.
Technical Overview With Chart :
Moving Averages :
Exponential :
MA 10 : 1.08 | Negative Crossover | Bearish
MA 20 : 1.09 | Negative Crossover | Bearish
MA 50 : 1.09 | Negative Crossover | Bearish
Simple :
MA 10 : 1.09 | Negative Crossover | Bearish
MA 20 : 1.09 | Negative Crossover | Bearish
MA 50 : 1.09 | Negative Crossover | Bearish
RSI (Relative Strength Index): 37.09 | Sell Zone | Bearish
Stochastic Oscillator : 12.69 | Sell Zone | Negative
GBP/USD hesitates around the mid-1.2700s following a robust post-BoE rebound, as the pair struggles to extend gains amid a narrow trading range. The US Dollar’s strength, fueled by Fed Chair Powell’s comments, impacts major currencies. EUR/USD advances towards 1.0900 in a positive market mood, while NZD/USD and AUD/USD show resilience on improved data and favorable economic conditions. Investors await the US Nonfarm Payrolls (NFP) data for further market direction.
Markets In Focus Today – GBP/USD
GBP/USD Pauses The Post-BoE Rally Near Mid-1.2700s Ahead Of US NFP.
The GBP/USD pair struggles to capitalize on the previous day’s solid recovery of around 130 pips from the 1.2625 area, or over a two-week low, and oscillates in a narrow band during the early European session on Friday. After closing the second consecutive day in negative territory on Wednesday, GBP/USD continued to edge lower early Thursday and was last seen trading at around 1.2650. Although the technical outlook points to a bearish tilt in the near term, the pair faces a two-way risk heading into the Bank of England’s (BoE) policy announcements. The US Dollar started to gather strength late Wednesday after Federal Reserve (Fed) Chairman Jerome Powell said that he doesn’t think that a rate reduction in March is the base case scenario.
Technical Overview With Chart :
Moving Averages :
Exponential :
MA 10 : 1.27 | Positive Crossover | Bullish
MA 20 : 1.27 | Positive Crossover | Bullish
MA 50 : 1.27 | Positive Crossover | Bullish
Simple :
MA 10 : 1.27 | Positive Crossover | Bullish
MA 20 : 1.27 | Positive Crossover | Bullish
MA 50 : 1.27 | Positive Crossover | Bullish
RSI (Relative Strength Index): 57.79 | Buy Zone | Bullish
Stochastic Oscillator : 72.42 | Buy Zone | Neutral
Weekly FX Analysis – GBP/USD crashes, EUR/USD battles, AUD/USD tumbles.
Introduction
GBP/USD faces a downturn, hitting daily lows near 1.2650, influenced by heightened selling pressure and a robust US jobs report bolstering the USD. Meanwhile, EUR/USD reacts to the NFP, losing key technical support. The AUD/USD tumbles post-jobs report, with the RBA’s decision and upcoming economic data crucial for its trajectory. USD/JPY soars to new highs, propelled by strong US employment data, as focus shifts to the BoJ’s potential rate changes in March. The week ahead includes key events like RBA’s decision, USD data releases, and developments in USD/JPY.
Markets In Focus Today – GBP/USD
GBP/USD Plummets To Daily Lows Near 1.2650.
The selling pressure in the risk complex gathers extra steam and forces GBP/USD to drop to the lower end of the daily range near 1.2650. The impressive January jobs report from the US provides a boost to the USD ahead of the weekend. GBP/USD gathered bullish momentum and closed in positive territory on Thursday after dipping below 1.2650 with the immediate reaction to the Bank of England’s (BoE) policy announcements. The pair holds its ground in the European session on Friday and trades modestly higher on the day above 1.2750. The BoE maintained the bank rate at 5.25%, as expected, following the first policy meeting of the year.
Technical Overview With Chart :
Moving Averages :
Exponential :
MA 10 : 1.27 | Negative Crossover | Bearish
MA 20 : 1.27 | Negative Crossover | Bearish
MA 50 : 1.26 | Negative Crossover | Bearish
Simple :
MA 10 : 1.27 | Negative Crossover | Bearish
MA 20 : 1.27 | Negative Crossover | Bearish
MA 50 : 1.27 | Negative Crossover | Bearish
RSI (Relative Strength Index): 43.61 | Neutral Zone | Neutral
Stochastic Oscillator : 49.57 | Buy Zone | Negative
Daily FX Analysis – GBP/USD falls, EUR/USD fights, AUD/USD fluctuates, USD/JPY rises.
Introduction
GBP/USD faces a decline, reaching 1.2610, as the US Dollar gains strength on robust jobs data, reducing the likelihood of a Fed rate cut in March. Meanwhile, EUR/USD struggles below 1.0800 amid sustained USD strength, while AUD/USD recovers from a three-month low, supported by positive economic data. In contrast, USD/JPY sees a rally to a two-month peak, propelled by rising US bond yields and the BoJ’s hawkish stance amidst geopolitical concerns.
Markets In Focus Today – GBP/USD
GBP/USD Extends Losses To Near 1.2610 As The Fed Rate Cut In March Appears Unlikely.
GBP/USD lost ground as US Dollar surged after blockbuster US jobs data. Fed Chair Jerome Powell reiterated that the March meeting is too soon to start rate cuts. BoE’s Huw Pill mentioned that the right time for the rate cuts is probably still some time away. GBP/USD continues its decline for the second consecutive session, edging lower to around 1.2610 during the Asian trading hours on Monday. The Pound Sterling (GBP) faces challenges as the US Dollar (USD), measured by the US Dollar Index (DXY), reaches an eight-week high. This strength in the USD is fueled by positive market sentiment as a March rate cut by the Federal Reserve appears unlikely. The sentiment is based on a promising labor market report released on Friday.
Technical Overview With Chart :
Moving Averages :
Exponential :
MA 10 : 1.27 | Negative Crossover | Bearish
MA 20 : 1.27 | Negative Crossover | Bearish
MA 50 : 1.26 | Negative Crossover | Bearish
Simple :
MA 10 : 1.27 | Negative Crossover | Bearish
MA 20 : 1.27 | Negative Crossover | Bearish
MA 50 : 1.27 | Negative Crossover | Bearish
RSI (Relative Strength Index): 41.76 | Neutral Zone | Neutral
Stochastic Oscillator : 36.14 | Sell Zone | Negative
Daily FX Analysis – EUR/USD, GBP/USD, USD/CAD, USD/CHF trends.
Introduction
EUR/USD holds onto recovery gains near 1.0750, buoyed by positive German data, while the USD retreats from its recent multi-week high. In contrast, GBP/USD rebounds toward 1.2600 amid an overall weakened US Dollar. USD/CAD snaps a two-day winning streak above 1.3500, facing resistance ahead of Canadian PMI data. USD/CHF maintains below 0.8700 as the Swiss Franc potentially benefits from an improved 10-year Swiss bond yield, following Federal Reserve Chair Jerome Powell’s dismissal of a March rate cut.
Markets In Focus Today – EUR/USD
EUR/USD Clings To Recovery Gains Near 1.0750 On Upbeat German Data.
EUR/USD trades in positive territory near 1.0750 in the European session on Tuesday as the USD retreats from the multi-week high it set on Monday. The data from Germany showed that Factory Orders rose 2.7% in December, supporting the Euro. In two consecutive sessions, EUR/USD broke below the key 200-day SMA (1.0836) and the provisional 100-day SMA (1.0783), reaching levels last seen in early December near 1.0720 on Monday. On the opposite side of the equation, the USD Index (DXY) saw its upside bias strongly reinvigorated as investors kept assessing another firm monthly job creation, as per Friday’s Nonfarm Payrolls (+353K), along with hawkish remarks from Chief Powell at his interview on CBS released over the weekend.
Technical Overview With Chart :
Moving Averages :
Exponential :
MA 10 : 1.0815 | Negative Crossover | Bearish
MA 20 : 1.0852 | Negative Crossover | Bearish
MA 50 : 1.0868 | Negative Crossover | Bearish
Simple :
MA 10 : 1.0823 | Negative Crossover | Bearish
MA 20 : 1.0867 | Negative Crossover | Bearish
MA 50 : 1.0902 | Negative Crossover | Bearish
RSI (Relative Strength Index): 37.0641 | Sell Zone | Bearish
Stochastic Oscillator : 9.8014 | Sell Zone | Negative
EUR/USD holds steady above 1.0750 amidst a weakening US Dollar and market optimism, brushing off mixed German data. Despite a negative start to the week, the pair found stability amid shifting sentiments. Meanwhile, USD/CHF paused after a two-day winning streak, influenced by improved Swiss bond yields. The Japanese Yen struggles against the USD due to hawkish Fed expectations and potential BoJ policy changes. The Australian Dollar gains ground on a weaker US Dollar, fueled by the RBA’s hawkish remarks and Powell’s emphasis on monitoring inflation. Fed speeches remain in focus for further market direction.
Markets In Focus Today – EUR/USD
EUR/USD Trades Firmer Above 1.0750 After German Data.
EUR/USD is holding the fort above 1.0750 in European trading on Wednesday. The pair cheers a continued US Dollar pullback and the market’s optimism. The Euro shrugs off mixed German Industrial Production data. Fedspeak is next in focus. Following a negative start to the week, EUR/USD extended that pessimism and kept the trade near recent YTD lows in the 1.0725/20 band on turnaround Tuesday. The pair’s bearish price action was accompanied by a vacillating mood surrounding the greenback against the backdrop of some small corrections in US yields across various maturities.
Technical Overview With Chart :
Moving Averages :
Exponential :
MA 10 : 1.0807 | Negative Crossover | Bearish
MA 20 : 1.0844 | Negative Crossover | Bearish
MA 50 : 1.0864 | Negative Crossover | Bearish
Simple :
MA 10 : 1.0811 | Negative Crossover | Bearish
MA 20 : 1.0856 | Negative Crossover | Bearish
MA 50 : 1.0898 | Negative Crossover | Bearish
RSI (Relative Strength Index): 38.9615 | Sell Zone | Bearish
Stochastic Oscillator : 15.8181 | Sell Zone | Positive
