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Thursday, February 9th
The NZD/USD pair reacted negatively on the RBNZ interest rate decision, losing for more than a cent since pre-decision region. As it was widely expected the RBNZ left its interest rate unchanged on its meeting, witnessed in Asia, however, following comments of RBNZ Governor G.Wheeler have sent the pair to refresh its 3-week lows below the level 0.72. G.Wheeler stressed that the Bank won’t increase its rate until inflation reaches its target level, so most likely interest rate will continue to stay low, thereby crashing market’s expectations of further rate hikes. Currently the pair is trading within striking distance of its recent lows, trying to consolidate in the region of 0.72. Nothing else is scheduled in data calendar for today, so USD price dynamics will continue to drive the pair during this Thursday.
The USD/JPY retreats from its recent highs, marked at 112.42, in wake of shrinking demand for the US dollar. However, the pair remains supported, as cautious sentiments are gathering pace ahead of Japanese-US summit, scheduled on tomorrow in Washington. This Friday Japan PM S.Abe and US President D.Trump will meet to discuss trade, defense and jobs, that brings nervousness amid the market, as US President’s protectionist policy could intensify trade war between two countries that may cause additional risks to Japanese business . Only secondary tier data will be published during this Thursday, so the major will keep tracing global risk trends during this trading session.
The single currency is gaining points versus its American competitor today, retaking 1.07 level. The EUR/USD has regained a smile, staying within striking distance of its recent tops, marked at 1.0705, after brief bearish slide, seen in Asia. However, poor German Trade Balance, published in early Europe, is slowing down pair’s bullish run. Looking ahead, data calendar from Eurozone remains absolutely empty, while the US economy will provide the market with secondary tier data, so the pair will stay at mercy of the USD price dynamics during this Thursday.
The USD/CAD pair steps lower, refreshing its daily lows at 1.3137, after short lived upside rally, witnessed in Asia. By the time of writing the pair was trading on the level of 1.3140, as US bulls apparently are losing control over the pair. Moreover, today oil prices remain on a firm note despite red numbers of Crude Oil Inventories, thereby supporting commodity linked assets, such as Loonie. Yesterday prices for the black gold remained positive despite sharp increase in crude oil stockpiles, as traders had already priced in negative results of the report, guided by similar figures of API data. Today nothing much is scheduled in data calendar, as only secondary data from Canadian housing and US labor markets could bring some short-term trading opportunities for market participants.
The main events of the day:
BoE Governor M.Carney’s speech – 20.30 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0610 R. 1.0758
USDJPY S. 111.11 R. 112.95
GBPUSD S. 1.2446 R. 1.2596
USDCHF S. 0.9889 R. 1.0027
AUDUSD S. 0.7586 R. 0.7694
NZDUSD S. 0.7191 R. 0.7369
USDCAD S. 1.3094 R. 1.3224
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