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Friday, January 27th
The GBP/USD pair extends its yesterday’s bearish momentum, walking away from its weekly highs, however, going to close this week with profits. Currently the pair is moving in south direction, mostly ignoring yesterday’s positive UK flash GDP and weaker data from the US housing market, as the greenback remains firmer at the end of this week in wake of D.Trump’s reflation policy. On the other hand, increasing hopes of soft Brexit, inspired by recent events on UK political field, are limiting pair’s further fall. Today UK docket remains absolutely empty, leaving the pair on the mercy of US dataflow, scheduled on NY trading session.
The yen is losing points against its American counterpart on the back of BOJ announcement, sending the pair sharply higher its yesterday’s lows. Today the BOJ made the decision to increase purchases in Japanese Government Bonds, hinting on tapering QE program on its next meeting, which is scheduled on next Tuesday. Moreover, buying interest around the US dollar is also adding some strength in pair’s bullish run. Currently the pair is trading at 115.15 level, stepping away from its yesterday’s lows, marked in the region of 113 level. Today all eyes are set on the US docket, featuring US flash GDP and durable goods orders, which could bring some impetus to the pair.
The EUR/USD pair corrects higher after briefly bearish Asian trading session. Currently the main currency pair remains within striking distance of its daily tops, posted in the region of 1.07 level, after facing resistance at 1.0658. However, expectedly the pair will stay under bearish control on the back of expectations of US president’s stimulus program, that was introduced during his election race. Today in data calendar traders will find such reports, as US Core Durable Goods Orders and preliminary GDP, while EU Finance Ministers Meeting also will be able to bring some impetus to the shared currency.
The Aussie failed to sustain its yesterday’s recovery and fell to red zone in Asia despite positive Australian data, seen this morning. By the time of writing the AUD/USD pair was trading at 0.7525 spot, down from its daily tops, marked at 0.7542, as broad demand for the US currency, backed by potential D.Trump’s policy, is dragging the major in negative territory. Moreover, broad risk-off sentiments coupled with softer tone around oil prices are adding some bearish pressure on the pair. Looking in the day ahead, US dataflow with US GDP numbers and Core Durable Goods Orders on a monthly basis will grab traders’ attention later in NA session.
The main events of the day:
US Core Durable Goods Orders – 15.30 (GMT +2)
Prelim. US GDP – 15.30 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0593 R. 1.0809
USDJPY S. 112.32 R. 115.94
GBPUSD S. 1.2490 R. 1.2724
USDCHF S. 0.9941 R. 1.0057
AUDUSD S. 0.7483 R. 0.7609
NZDUSD S. 0.7170 R. 0.7348
USDCAD S. 1.3014 R. 1.3170
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