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Monday, January 23rd
The EUR/USD retained its Friday’s bullish momentum in Asia, as inaugural speech of the 45th president of the US failed to inspire dollar’s bulls. Last Friday D.Trump delivered his speech, which had more protectionist tone and lacked on details of further fiscal stimulus measure, while market’s participants had already priced in more positive news by that time. During his speech the US president stressed, that his policy will follow two main rules: “buy American and hire American”. Currently the main currency pair is oscillating around the mid-point of the 1.07, that is one cent higher Friday’s lows. Today all trader’s attention will be focused on ECB President M.Draghi’s speech, as US data calendar is absolutely empty at the start of this week.
Following global sentiments, the GBP/USD rose to its monthly highs, posted at 1.2467 handle, as markets remain disappointed by lack of details regarding US President D.Trump’s further plans. Increasing skepticism among investors, backed by President’s failure to shed the light on his further policy specifics is forcing the US dollar to retreat across the market. Today expectedly the pair will keep expanding its bullish tone amid data light calendar from both sides, as weakness around US treasury yields additionally is weighing on the greenback. In midterm perspective the pair will remain influenced by headlines related to Trump/Brexit developments.
Today the dollar/yen pair remains bearish at the start of this week, as recent inaugural speech of the US president continues weighing on the buck. At the end of the last week the new US president delivered his first speech, which was hawkish enough, however, lacked of details over his potential political/economic measures, that were spoken during his election campaign, what remained highly disappointing for those who had priced in possible positive changes. Moreover, softer tone around higher yielding assets is also negatively influencing the pair lately. Currently the pair is wobbling around 113.50 level, with its daily lows, posted at 113.17, but still remaining in the red zone. Today empty data docket will leave the pair at the mercy of further US price dynamics during this Monday.
Broadly based sell-off around the greenback continues to interact with the USD/CHF pair, sending it to refresh 2-month lows at 0.9973. Currently the pair remains within striking distance of its daily lows, as disappointing US president’s first speech, that again has left his further fiscal stimulus in shadow, continues weighing on the US currency. Adding to this, broad risk-off sentiments, witnessed in Asia, are lending extra support to the Swiss franc’s safe-haven status. In absence of any major report scheduled in data calendar for today the pair will continue following US dollar’s price actions and broad RO-RO trend during this trading session.
The main events of the day:
ECB President M.Draghi’s speech – 13.30 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0592 R. 1.0762
USDJPY S. 113.53 R. 115.89
GBPUSD S. 1.2217 R. 1.2457
USDCHF S. 0.9960 R. 1.0120
AUDUSD S. 0.7481 R. 0.7623
NZDUSD S. 0.7077 R. 0.7267
USDCAD S. 1.3223 R. 1.3431
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