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Tuesday, February 21st
The EUR/USD pair dipped back below the level of 1.06 in Asia, refreshing its five-day lows at 1.0542 level. Today the common currency came under strong selling pressure, as worries around Greece crisis are gathering a pace. Yesterday Greece and euro zone resumed discussion over aid payments to support Greek economy. Moreover, pre-election opinion poll in France showed that National Front leader Marin Le Pen is pulling into the lead with 27% of votes, additionally weighing the pair. Furthermore, euro bulls ignored better-than-expected flash German Manufacturing PMI data, published this morning, bringing no relief to the common currency. Today the US docket will keep silence for the second session in a row with only couple of Fedspeaks to show in NA session, so the pair will continue to follow global market’s trend during this Tuesday.
Today the Aussie is losing ground vs. its American competitor in wake of slightly dovish RBA Meeting Minutes, published in Asia. The CB of Australia has left its policy outlook unchanged, however, providing the market with cautious comments on the labor market. Moreover, strong demand for the US currency is also collaborating with pair’s decline. Today the major will keep following USD price dynamics and overall risk trend to determine its further direction, while several speeches by FOMC members and data set from Australian economy, scheduled on next Asian session, will also be closely watched for fresh short-term trading opportunities.
The GBP/USD pair fails to sustain its growth despite positive risk trend, witnessed in early Europe. Today strong pick up in the demand for the greenback is majorly driving the market, sending the pair to refresh its today’s lows at 1.2418. Moreover, cautious sentiments around the pound, triggered by debates on Article 50 in The House of Lords, are additionally weighing the pair. However, expected that there won’t be any amendments made during discussion. Today BoE will publish its February Inflation Report that will grab most part of traders’ attention as well as following Bank Governor M.Carney’s and his colleagues’ speeches, scheduled on European session.
The USD/CAD pair pays little of attention to better crude oil prices and approaches the mid-level of 1.31. Strong US dollar’s pick-up in demand across the board is driving market’s sentiments as of late. Seems that investors prefer to price in today’s Fedspeaks and FOMC minutes, scheduled on tomorrow. Today all eyes will be focused on US dollar’s price actions, while sentiments around oil prices will also be able to influence the pair amid lack of fundamentals from both economies.
The main events of the day:
BoE Governor M.Carney’s Speech – 12.00 (GMT +2)
BoE Inflation Report Hearings – 12.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0585 R. 1.0645
USDJPY S. 112.58 R. 113.48
GBPUSD S. 1.2368 R. 1.2528
USDCHF S. 0.9994 R. 1.0060
AUDUSD S. 0.7648 R. 0.7710
NZDUSD S. 0.7158 R. 0.7208
USDCAD S. 1.3052 R. 1.3144
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