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Thursday, February 23rd
Today the EUR/USD pair once again is losing ground, stepping away from its overnight highs, posted in 1.0570 area, in wake of mixed morning data from German economy. However, yesterday the greenback remained unimpressed by eventless FOMC meeting minutes, as most of Fed members had already expressed their opinions regarding further rate-hikes and Fed’s monetary policy by the time of minutes’ release. And once again FOMC members reaffirmed necessity of further tightening, however, noting that it will happen “fairly soon”, while only a few of them expect a hike at upcoming meeting. Additionally, the euro yesterday got positively affected, as one of the French presidential candidates F.Bayrou quitted the race, giving E.Macron extra chances to exceed far-right M.Le Pen. Nothing much is left in data calendar for this Thursday, so the pair will follow USD price actions during this trading session.
The dollar/yen pair is trading in a bearish direction, however, remaining able to hold above 113 level. Yesterday the dollar came under strong selling pressure against its main competitors, as FOMC minutes after its latest monetary policy meeting showed necessity of further rate hikes, however, noting that much will depend on D.Trump's fiscal policy. Moreover, broadly based risk-off sentiments, witnessed in Asia, are additionally collaborating with pair’s downside traction. Today only secondary data releases are left in economic calendar, so RO-RO trend and dollar’s price actions will remain as key drivers on this Thursday.
Softer tone around the greenback is allowing the GBP/USD pair to retake its upside direction and refresh its daily peaks in 1.2470 area. Yesterday USD bulls remained unable to benefit from FOMC Meeting Minutes, as committee members once again stressed that interest rate increase is expected “fairly soon”, however, showing some uncertainty surrounding US president’s policy. On the other side, weak UK GDP report, published yesterday, continues to suppress the pound. Today the pair will continue to follow global market’s sentiments amid relatively thin economic calendar, as only secondary tier US data are scheduled on this Thursday.
The Looney is building some gains today against its American neighbor, despite dollar's attempts to recover after yesterday’s events. The USD/CAD pair continues to trade in a red territory on Thursday, as investors are still digesting yesterday’s cautious FOMC Meeting Minutes. Moreover, strong rally in oil prices, triggered by green numbers of API Weekly Crude Oil Stock report is additionally supporting Canadian currency. Yesterday crude oil inventories by API showed huge drop from last week’s 9.940M to -0.884M. Today Crude Oil Inventories report by EIA will take center stage in NA session in wake of recent data and absence of any fundamental releases from both sides.
The main events of the day:
Crude Oil Inventories – 18.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0460 R. 1.0622
USDJPY S. 112.49 R. 114.13
GBPUSD S. 1.2364 R. 1.2550
USDCHF S. 1.0044 R. 1.0170
AUDUSD S. 0.7646 R. 0.7742
NZDUSD S. 0.7119 R. 0.7233
USDCAD S. 1.3060 R. 1.3260
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