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Tuesday, February 14th
The EUR/USD pair retreats from session’s peaks, marked at 1.0633 spot, however, still remaining positive. Seems that euro’s recovery has run out of steam, as poor flash German GDP, released in early European trading session, is limiting pair’s further upside traction. However, cautious sentiments are starting to gather pace among investors ahead of the upcoming testimony by Chief J.Yellen before the Senate Banking Committee, slightly supporting the common currency. Looking ahead, German ZEW Economic Sentiment, preliminary GDP from Eurozone and US PPI will also grab attention during this trading session.
The GBP/USD pair is building gains for the second session in a row, refreshing its daily tops near mid-point of the level 1.25. The pound is showing surprisingly strong resilience despite recent pick up in the demand of the greenback, as investors have started to price in strong UK inflation figures, that will be released later in Europe. Markets are expecting that UK Consumer Price Index will tick higher to 1.9% in January, after having shown 1.6% in previous month. Furthermore, traders will also await for US PPI and Fed Chairwoman J.Yellen’s Testimony, that will be released later in NA session.
The USD/CAD pair extends its bullish run this Tuesday in wake of softer tone around the US dollar, witnessed in Asia. Currently the pair is trading within striking distance of its recent lows, posted at 1.3046 handle, as US bulls are apparently out of steam as of late. However, slight weakness in crude oil prices is slowing down pair’s decline, as the Looney remains sensitive to price dynamics of the black gold. Later in the day, US PPI and several Feadspeaks, with J.Yellen’s testimony in a main role, will be able to bring some impetus to the pair, while Canadian docket will continue to keep silence during this Tuesday.
The Aussie remains positive today against its American competitor following upbeat Chinese data. The AUD/USD pair performed sharp upsurge, refreshing its daily highs at 0.7686 and recovering from yesterday’s losses, after Chinese CPI and PPI had shown better-than-expected results in Asia, lending extra legs of support to the Australian currency. Moreover, the greenback corrects slightly lower against basket of its main competitors, thereby additionally underpinning the pair. Now all attention remains focused on US PPI and Fed Chair J.Yellen’s testimony due later today which will be able to provide investors with fresh short-term trading opportunities.
The main events of the day:
UK CPI – 11.30 (GMT +2)
German ZEW Economic Sentiment – 12.00 (GMT +2)
US PPI – 15.30 (GMT +2)
Fed Chair J.Yellen Testimony – 17.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0548 R. 1.0682
USDJPY S. 113.01 R. 114.53
GBPUSD S. 1.2443 R. 1.2579
USDCHF S. 0.9997 R. 1.0099
AUDUSD S. 0.7600 R. 0.7700
NZDUSD S. 0.7120 R. 0.7246
USDCAD S. 1.3014 R. 1.3148
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