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Monday, February 6th
The EUR/USD pair eases part of its post-US jobs data gains at the start of this week, refreshing its daily lows in the region of 1.0750. Seems that US bulls have taken control over the major, forcing it to retreat from its overnight highs, marked at 1.0790 level, as dust settles over disappointing US data reports. However, broadly based risk-off sentiments, witnessed during Asia, are capping the pair from its further losses. Relatively quiet trading session approached the market this Monday with only ECB President M.Draghi’s speech to show.
The pound remains weaker versus its American competitor this Monday failing in several attempts to recover. After brief consolidation period, seen in Asia, the GBP/USD pair continues to stay bearish, as the US currency corrects higher after Friday’s poor data from the US labor marker. Moreover, recent dovish comments from BoE Governor M.Carney, stressing that rates could go in either direction, are additionally weighing the pair lately. Only secondary US data are scheduled in Monday’s event calendar, so the pair will continue following dollar’s price dynamics, while any developments around Brexit will also stay in investors’ focus.
Today the AUD/USD pair extends its bearish rally suffering from poor fundamentals. This morning Australian Retail Sales as well as Chinese services PMI data showed worse-than-expected results, thereby adding some bearish pressure to the Aussie. Moreover, corrective moves of the greenback and cautious sentiment across the market are also negatively influencing the AUD/USD pair. Today’s event calendar remains empty, so traders will focus their attention on RBA Interest Rate Decision, scheduled on tomorrow’s Asia.
The USD/JPY pair has recovered its overnight losses, and now is trading within striking distance of its daily tops, marked at 112.77, however, failing to reach pre-NFP region. Seems that the pair has recovered its smile, as the dollar corrects higher against basket of its main competitors, bouncing off its overnight lows, posted at 112.23 handle. However, broadly weaker sentiments around higher-yielding assets, seen in Asia, are supporting Japanese currency, thereby slowing down pair’s recovery. Nothing much is scheduled in data calendar, so the dollar/yen pair will continue tracing US dollar’s price action to determine its further direction.
The main events of the day:
ECB President M.Draghi speech – 16.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0674 R. 1.0852
USDJPY S. 111.64 R. 113.90
GBPUSD S. 1.2410 R. 1.2572
USDCHF S. 0.9858 R. 1.0012
AUDUSD S. 0.7587 R. 0.7741
NZDUSD S. 0.7200 R. 0.7386
USDCAD S. 1.2949 R. 1.3109
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