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Friday, February 17th
The EUR/USD pair corrects lower toward 1.0640 level after brief consolidation phase, witnessed during Asia. The main currency pair has lost its upside momentum after significant bullish run from its Wednesday's multi-week lows. However, the dollar remains weak, as the currency market continues to digest recent dovish speech by Fed Chairwoman J.Yellen, who showed disappointment about US economic results. And even yesterday’s batch of positive macroeconomic releases was unable to break dollar’s bearish rally. Moreover, yesterday D.Trump during his speech once again failed in providing any clarity on his further economic and political steps, thereby discouraging traders from opening long-dollar bets. Currently the pair is trading within striking distance of its recent lows, following global markets sentiments, in wake of absolutely empty economic calendar this Friday.
The GBP/USD pair stays on a negative territory, following market’s sentiments, stepping away from its overnight highs, marked at 1.2511. At the moment of writing the pair was trading near the mid-point of 1.24, as bears finally took control over the pair in wake of broad pound’s weakness, triggered by recent awful UK inflation data. On the other hand, weaker sentiments around the dollar, based on dovish J.Yellen’s testimony and lack of details over D.Trump’s taxation reform, are restricting pair’s further fall. Today only UK Retail Sales data will be able to bring some impetus to the pair, as the US docket will keep silence at the end of this week.
The dollar/yen pair expands its bearish rally after short consolidation, seen in Asia. Currently the pair is trading within striking distance of its recent lows, marked in the region of 113 spot, as the dollar continues to suffer from recent events on the economic field of the US. Adding to that, shrinking risk appetite is also collaborating pair’s downside traction. With no relevant fundamental triggers scheduled on this trading session, the US price dynamics and prevalent risk-off sentiments will continue to determine pair’s further direction.
The NZD/USD pair is losing ground today extending its slide further below 0.7200 handle in wake of weak NZ fundamentals. The pair came under strong selling pressure in early Asia, as a drop in NZ business PMI and red numbers of Retail Sales have capped the pair from its further growth, despite broad dollar’s weakness. Moreover, prevalent risk-off sentiments are also negatively influencing higher-yielding assets, such as Kiwi. Nothing much is scheduled in data calendar for this Friday, so the pair will remain at the mercy of US dollar price-actions during this trading session.
The main events of the day:
UK Retail Sales– 11.30 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0557 R. 1.0737
USDJPY S. 112.30 R. 114.76
GBPUSD S. 1.2419 R. 1.2557
USDCHF S. 0.9907 R. 1.0085
AUDUSD S. 0.7655 R. 0.7751
NZDUSD S. 0.7183 R. 0.7257
USDCAD S. 1.2981 R. 1.3123
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