Daily economic digest from Forex.ee

Daily economic digest from Forex.ee

16 January 2017, 12:36

Daily economic digest from Forex.ee

Stay informed of the key economic events 


Monday, January 16th  


Today the GBP/USD pair opened with a strong bearish gap of almost 200 pips, refreshing 2-month lows at 1.1998 level on the back of weekend news. Traders reacted negatively on the latest UK headlines, citing that the UK PM T.May is ready to “hard Brexit” and is not going to deviate from triggering article 50 by the end of this March. Now all eyes are set on tomorrow’s speech of the UK PM where she expectedly will bring more clarity on further Brexit developments. Currently the GBP/USD major is consolidating its strong drop near the level of 1.2050, failing in minor attempts to recover and posting its daily tops near 1.2084 spot. Today expectedly the pair will remain under strong pressure of “hard Brexit” fears limiting any immediate recovery.


Seems that the EUR/USD pair has lost a smile at the start of this week after three consecutive sessions, correlating to strong drop in the GBP/USD pair. The main currency pair was unable to benefit from risk negative environment, triggered by the latest headlines from the UK, refreshing its daily lows around the level of 1.06. Nothing important is scheduled in data calendar for the pair so it will continue following global market sentiments, influenced by renewed concerns of “hard Brexit”, while the US market will stay closed today in wake of Martin Luther King Day.


Strong risk-off sentiments gripped the market this Monday, forcing the USD/JPY pair to refresh its multi-week lows below the level of 114. Today the dollar/yen pair came under strong selling pressure, as traders prefer to stay cautious in view of recently reawakened “hard Brexit” concerns, that are positively influencing yen’s safe-haven status. Today RO-RO trend will remain as a key driver for the pair, as the US market will stay closed due to Martin Luther King Day.


Seems that Australian bulls have lost its momentum allowing the AUD/USD pair to change its direction after five consecutive sessions of gains. Having faced resistance at 0.7500, the pair fell to its daily lows posted at 0.7458 handle, as the market steps over recent D.Trump’s disappointing speech, that was suppressing the greenback. Moreover, fresh wave of risk-off moods approached the market, as investors are digesting the latest headlines from UK, which are negatively influencing higher-yielding assets, such as Australian currency. Today risk-aversion and US dollar’s price-dynamics will continue to set up pair’s further direction amid empty data calendar.


The main events of the day:

US - Martin Luther King Jr. Day

BOE Governor M.Carney’s speech – 20.30 (GMT +2)


Support and resistance levels for the major currency pairs:

EURUSD               S. 1.0560 R. 1.0710

USDJPY                 S. 113.35 R. 115.99

GBPUSD               S. 1.2070 R. 1.2294

USDCHF               S. 1.0000 R. 1.0164

AUDUSD              S. 0.7425 R. 0.7545

NZDUSD               S. 0.7045 R. 0.7177

USDCAD               S. 1.3070 R. 1.3188

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