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Thursday, January 12th
Yesterday the GBP/USD pair managed to retake its key resistance level of 1.22 on the back of Trump’s disappointing speech and now the major is trading within striking distance of its recent maximums, posted at 1.2316. Moreover, yesterday market participants mostly ignored BoE Governor M.Carney’s neutral speech, where he noted that UK economy remains exposed to global risks and Brexit could only intensify its negative influence. Seems that post-Trump’s conference rally is not over yet so the pair will continue to track USD price changes to determine its further direction.
The EUR/USD extends its yesterday’s bullish rally building gains above the level of 1.06. Today the main currency pair refreshed this year highs, marked at 1.0664 spot, on the back of yesterday’s President-elect D.Trump’s conference, where he failed to provide any signs of his further political implementations on the US economy. Today only secondary data reports, such as ECB Account of Monetary Policy Meeting and couple of speeches of Fed policy-makers will be able bring some impetus on the pair, while US dollar’s dynamics will remain as a key driver during this Thursday.
The Aussie remains on a firm note against its American counterpart, allowing the AUD/USD pair to refresh it 4-week highs at 0.7484 spot. Today the pair remains bullish for the fourth session in a row, supported by yesterday’s disappointing D.Trump’s speech, as lack of comments on his further fiscal stimulus triggered sharp sell-off around the US dollar. Moreover, better tone in commodity space, especially in copper, is also positively influencing Australian currency. Nothing much is scheduled for the pair on this Thursday, so the major will continue to be influenced by US dollar’s price dynamics.
Seems that USD/CAD continues to lose points refreshing its 4-week lows at 1.3090 level. Today the pair extends its bearish run for the second consecutive session, losing about two cents since yesterday’s highs, as Wednesday’s president-elect Donald Trump’s press conference failed to provide any support for the greenback. Even more, ongoing oil prices’ recovery from its recent lows also is lending extra legs to the Loonie lately. Today expectedly the pair will keep trading under influence of US dollar bears as market participants are still digesting recent events, while several Fed speaks will be able to bring some relief on the greenback later in NY session.
The main events of the day:
ECB Publishes Account of Monetary Policy Meeting – 14.30 (GMT +2)
US Initial Jobless Claims – 15.30 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0383 R. 1.0721
USDJPY S. 112.86 R. 118.14
GBPUSD S. 1.1939 R. 1.2407
USDCHF S. 1.0016 R. 1.0308
AUDUSD S. 0.7302 R. 0.7540
NZDUSD S. 0.6907 R. 0.7161
USDCAD S. 1.3021 R. 1.3371
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