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Tuesday, January 24th
The GBP/USD eases its positions after three consecutive session of gains, as we head into European session. Seems that pound bulls have taken a breather, allowing investors to lock in some profits after significant rally, triggered by uncertainty around D.Trump’s presidency. Moreover, cautious sentiments around the Sterling are gaining a pace, as investors are awaiting for UK Supreme Court’s decision on Brexit. According to experts, lawmakers will refuse hard Brexit and will ask UK PM T.May to adopt a soft Brexit. Nothing that could overshadow latest developments around the Brexit is scheduled in data calendar, so traders will continue awaiting for Supreme Court’s decision on the Brexit process for fresh direction on the major.
Seems that the US dollar has recovered ground somewhat, forcing the EUR/USD pair to step back from its overnight highs, marked at 1.0773 handle. By the moment of writing the pair was trading around the level of 1.0740, as broad nervousness ahead of UK Supreme Court’s decision on Brexit, forcing investors to perform profit-taking actions, sending the pair lower. On the other hand, risk negative environment is limiting pair’s further downside sharp moves. However, expectedly in mid-term perspective the greenback will remain weak, as US President D.Trump’s plans on his further policy are still unclear. Next on tap for the pair remain bloc of flash PMI reports from Euro zone and US, while latest developments around Brexit will take center stage on this Tuesday.
The USD/JPY pair is showing minor recovery from its overnight lows, as the dollar corrects higher today after abrupt rally, backed by disappointing 45th US President’s inauguration speech. However, recent comments of nominated as US Secretary of the Treasury S.Mnuchin, favoring a weaker Dollar in wake of Trump's decision to withdraw the US from Trans-Pacific Trump, are suppressing the greenback lately. Moreover, positive Japanese Manufacturing PMI report, seen this morning, is providing extra support to the yen. Today all market’s attention will be focused on UK Supreme Court's decision on Brexit, that will drive further sentiments around risk-associated assets.
Having faced resistance at 1.3212, the USD/CAD pair has managed to gain some bullish momentum and now is testing its daily highs, posted at 1.3272 level. Seems that US bull have regained its positive tone after significant rally, led by uncertainty around further D.Trump’s policy steps. However, positive oil price dynamics, seen this Tuesday, is limiting pair’s northern traction. Looking ahead, today the pair will continue following strong global market’s sentiments, based on significant events from UK, while US data, scheduled on NA session also will be able to bring short-term impetus to the pair.
The main events of the day:
US Existing Home Sales – 17.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0665 R. 1.0817
USDJPY S. 111.55 R. 114.99
GBPUSD S. 1.2311 R. 1.2649
USDCHF S. 0.9923 R. 1.0045
AUDUSD S. 0.7536 R. 0.7612
NZDUSD S. 0.7126 R. 0.7290
USDCAD S. 1.3148 R. 1.3378
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