Daily economic digest from Forex.ee

Daily economic digest from Forex.ee

2 February 2017, 12:20
EEAnalytics
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Daily economic digest from Forex.ee

Stay informed of the key economic events 

 

Thursday, February 2nd

 

The GBP/USD pair is showing one of the best performances across the market, staying about 3 figures higher this Tuesday lows, marked at 1.2412 spot, mainly driven by US dollar’s weakness. Currently the pair is moving in north direction, however, its growth is limited, as traders refuse to make any directional bets ahead of main event of this day – BoE Interest Rate Decision. Broadly expected that the Bank will keep its rate unchanged, while accompanying comments from policymakers and BoE Quarterly Inflation Report will be closely watched for any hints on BoE monetary policy outlook.

 

The EUR/USD pair keeps on its bullish run today, retaking the level of 1.08, as the greenback remains broadly weaker at the second day of February. Yesterday, as it was widely expected, the Fed left its interest rate flat, however, giving no cues on further rate-hikes, discussed last December. Only secondary tier data reports and ECB President M.Draghi’s speech are scheduled in event calendar for this Thursday, so weaker sentiments around the dollar will continue to determine further pair’s direction, as eventless FOMC meeting and recent D.Trump’s decisions are still weighing the US currency. Moreover, today traders will focus on BoE Interest Rate Decision that will have significant impact on the main currency pair.

 

Today the Aussie is showing strong gains vs. its American counterpart in wake of surprisingly strong Australian data, seen this morning, forcing the pair to break through the level of 0.76. Currently the AUD/USD pair is trading within striking distance of its three-month highs at 0.7672 level, that is on a cent higher its overnight lows. Moreover, renewed selling pressure around the US dollar, triggered by less hawkish Fed policy stance, is also provides extra legs to the major. Today only second tier data are scheduled in event calendar, so US dollar’s price dynamics will remain as a key driver for the pair during this Thursday, while traders start to shift their focus on tomorrow’s jobs report that will be able to bring some volatile moves at the end of this week.

 

Today the dollar/yen pair is still losing positions, refreshing its overnight lows at 112.48 spot, on the back of ongoing sell-off around the greenback. Yesterday the dollar came under renewed selling pressure, as Fed disappointed investors’ expectations with less hawkish policy stance. Moreover, growing cautiousness ahead of main risky event is also boosting demand for Japanese currency. Looking ahead, today the pair will continue following broad risk sentiments, influenced by BOE rate decision, while USD price actions will also be able to determine pair’s further direction.

 

The main events of the day:

UK Construction PMI – 11.30 (GMT +2)

BoE Inflation Report – 14.00 (GMT +2)

BoE Interest Rate Decision – 14.00 (GMT +2)

ECB President M.Draghi’s speech – 14.15 (GMT +2)

BoE Governor M.Carney’s speech – 14.30 (GMT +2)

 

Support and resistance levels for the major currency pairs:

EURUSD               S. 1.0687 R. 1.0847

USDJPY                 S. 111.95 R. 114.59

GBPUSD               S. 1.2489 R. 1.2763

USDCHF               S. 0.9851 R. 0.9993

AUDUSD              S. 0.7532 R. 0.7622

NZDUSD               S. 0.7202 R. 0.7348

USDCAD               S. 1.2984 R. 1.3136



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