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Friday, February 3rd
The GBP/USD pair lost its bearish momentum and now is trading within 20-pips flat range, as dust around BoE decision settles down. Yesterday the pair fell for about 2 cents after the CB of UK had left its refi rate unchanged, however, downgrading its further long-term inflation forecast. Moreover, following dovish comments of BoE Governor M.Carney also provided negative impact on the pair, as left behind lack of clarity on further Bank’s monetary policy steps. Currently the pair is oscillating around 1.2520 level, awaiting for UK Services PMI for fresh impetus, while NFP, scheduled on NA session, will overshadow any today’s fundamentals.
The EUR/USD remains consolidative in early Europe, after yesterday’s abrupt drop. On Thursday the pair failed in sustaining its positions above the level of 1.08 on the back of broad demand for the US dollar, underpinned by strong buck’s gains in the pair with the pound. Moreover, talks around “Trumponomics” have started to fade away, bringing some relief to the greenback and allowing it to correct higher against a basket of its main competitors. Looking ahead, today NFP will take center stage in this trading session, while several secondary reports from Eurozone will also be able to bring some impetus on the pair.
The yen is losing points today against its American peer on the back of BoJ decision to participate in bond market operations. Today the USD/JPY pair is extending its bullish run, as the Bank of Japan offered to expand its bond-buying program, forcing the pair to refresh its daily highs at 113.23 handle. On the other hand, any other further abrupt moves within the pair will be limited, as cautious sentiments ahead of NFP are gathering pace, which is a regular scenario for safe-haven assets. However, results of the US jobs report will have additional impact across the market, as it will help to calibrate timing for next Fed’s interest rate increase.
Today the AUD/USD pair remains in a red zone after minor retreat from its 3-month tops, marked yesterday at 0.7696 spot. Moreover, the Aussie failed in several attempts to recover its positions, as worse-than-expected Chinese data, seen in Asia, continue weighing the pair. Additionally, recent dollar’s correction against its main competitors and shrinking risk appetite are also negatively influencing the pair. Now all traders’ attention is focused on the main event of this day – US labor market report, that will be able to bring some short-term trading opportunities to investors.
The main events of the day:
UK Services PMI – 11.30 (GMT +2)
US Nonfarm Payrolls – 15.30 (GMT +2)
US Unemployment Rate – 15.30 (GMT +2)
US ISM Non-Manufacturing PMI – 17.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0707 R. 1.0853
USDJPY S. 111.42 R. 114.04
GBPUSD S. 1.2394 R. 1.2770
USDCHF S. 0.9843 R. 0.9979
AUDUSD S. 0.7525 R. 0.7761
NZDUSD S. 0.7194 R. 0.7384
USDCAD S. 1.2946 R. 1.3092
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