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Tuesday, January 9th
The EUR/USD pair remains offered for the third consecutive session, extending its retreat from the area of its multi-year tops, located near the level of 1.2090. Recent weakness of the major is mainly explained by ongoing post-New Year correction of the US dollar. Moreover, even yesterday’s cautious comments regarding less aggressive rate hikes by Fed members failed to stop recovery of the greenback. Looking ahead, today the EU data calendar will bring only secondary data reports, which most likely won’t attract much of investors’ attention, while the US will publish JOLTs job openings, thus bringing fresh trading opportunities during the NA session.
The GBP/USD pair failed to keep its yesterday’s positive trend and retreated to the region of 1.3550. Seems that Brexit jitters are still gripping the market, thus weighing the pound across the board. Recently the UK PM T.May made an announcement on the appointment of another Brexit minister, whose responsibilities will include regular updates on preparations for leaving the EU without a trade deal. Moreover, ongoing optimism around the US dollar continues to dominate the market, thereby also contributing to pair’s recent retreat. However, further decline of the pair looks limited, as increased demand for higher-yielding assets is still persisting on the market, thereby providing some support to the risky pound. On the data front, today the UK data calendar will remain absolutely silent, leaving the pair at the mercy of broad market trend, while the US will publish data from the labor market, which will bring some trading opportunities later ahead.
The JPY/USD pair witnessed pretty volatile trades during the Asian session, making the yen the most profitable asset of this Tuesday. Earlier today, the pair came under strong selling pressure and dropped to the area of 112.50 on news that the BoJ reduces its daily JGBs purchases that appeared highly supportive to the Japanese currency. However, ongoing post-New Year correction of the US dollar helped the pair to recover some pips and meet the European morning near the level of 112.70. Today, all traders’ attention will remain glued to another report from the US labor market, while the US dollar dynamics and increased risk appetite will continue to navigate the pair on Tuesday.
The AUD/USD pair regained its positive tone this Tuesday, having recovered some positions after yesterday’s slide from its multi-month highs, marked on the level of 0.7875. Renewed optimism around the pair is mainly attributed to ongoing demand for higher-yielding assets, which exerts support to the Australian currency. Adding to this, green numbers from the Australian housing market, published in Asia, also contribute to pair’s upside correction this Tuesday. On the data front, the US will publish JOLTS job openings data, which will help the pair to form its trajectory in the NA session, but until then the US dollar dynamics will remain the key navigator for the major.
Major events of the day:
US JOLTs Job Openings – 17.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.1894 R. 1.2088
USDJPY S. 112.61 R. 113.61
GBPUSD S. 1.3495 R. 1.3621
USDCHF S. 0.9718 R. 0.9810
AUDUSD S. 0.7801 R. 0.7891
NZDUSD S. 0.7137 R. 0.7201
USDCAD S. 1.2343 R. 1.2487
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