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Wednesday, January 11th
The pound fails its attempt to recover seen in Asia as shadow of “hard Brexit”, revived by recent comments, continues of UK PM T.May still weighing on the GBP/USD pair. Currently the major is trading around 1.2160 spot, easing its position from daily highs, located at 1.2198, despite better tone around higher-yielding assets witnessed during Tokyo session. Moreover, renewed demand for the US currency also keeps the pair in a red zone. Now immediate focus remains on significant data bloc from the UK economy, while speeches of Governor of the Bank of England M.Carney and US President-elect D.Trump will set up further direction for the pair.
Having faced resistance at 1.0536, the EUR/USD pair reversed its direction and now is trading in bearish trend near its daily highs posted at 1.0567. However, increasing demand for the USD ahead of D.Trump’s conference is limiting pair’s growth. Today investors will eagerly await for D.Trump’s speech, that will be the first one spoken in the status of US President-elect. Expectedly D.Trump’s comments will shed some light on his further policy intention and fiscal spending plans. However, increasing cautiousness ahead of key event of this day might influence positively on euro’s funding status. Nothing else is scheduled in data calendar, so the main currency pair will continue to follow broad market’s sentiments during this trading session.
The USD/JPY pair remains directionless near 116 spot in early Europe ahead of main event of this day. However, seems that risk-on rally has changed hands as nervous sentiments ahead of D.Trump’s press conference are gathering pace, allowing the pair to step away from its daily highs. Meanwhile, data calendar of this Wednesday remains eventless, so most likely the pair will continue tracing broad market’s sentiments to set up its further direction.
The Canadian dollar has recovered a smile reversing losses in the pair with its American neighbor. Slightly better tone around oil prices backed by Russia’s announcement about reducing oil output production in accordance with its agreement with OPEC is supporting Canadian currency, forcing the CAD/USD pair to refresh its daily lows at 1.3216 spot. Looking ahead, weekly report of US crude oil inventories by the EIA is due later in the NA session, while US President-elect D.Trump's press conference will grab most part of traders’ attention this Wednesday.
The main events of the day:
UK Manufacturing Production – 11.30 (GMT +2)
Speech of BoE Governor M.Carney – 16.15 (GMT +2)
US Crude Oil Inventories – 17.30 (GMT +2)
Speech of US President-Elect D.Trump – 18.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0500 R. 1.0654
USDJPY S. 114.61 R. 116.91
GBPUSD S. 1.2073 R. 1.2239
USDCHF S. 1.0084 R. 1.0218
AUDUSD S. 0.7308 R. 0.7414
NZDUSD S. 0.6909 R. 0.7087
USDCAD S. 1.3160 R. 1.3290
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