Daily economic digest from Forex.ee – Analytics & Forecasts – 13 February 2018

Daily economic digest from Forex.ee – Analytics & Forecasts – 13 February 2018


Daily economic digest from Forex.ee

Stay informed of the key economic events

Tuesday, February 13th

 

The EUR/USD pair follows broad market trend
today, breaking the resistance level of 1.2300 in early Europe. The key reason
of pair’s recent upside trend remains broad softness around the US dollar, as investors
are still locking some profit after bullish rally of the greenback, witnessed
last week. This dynamics of the US dollar is especially relevant ahead of
important US inflation data, which will be published this Wednesday. Moreover,
strong risk-off sentiment, which is dominating the market this week, could also
be involved in recent pair’s growth. Looking ahead, today we will have another
quiet trading session, as both economic calendars again won’t bring us any surprises,
thus leaving the pair at the mercy of broad market trend on Tuesday.

 

The GBP/USD pair keeps mildly bullish trend
this Tuesday, while investors remain in anticipation of the key event of this
day. The positive mood of the pair could be mostly explained by retreat of the
US dollar against its major counterparts. However, further upside trend of the
pair remains limited amid broad demand for safety, which is additionally
boosted by overall cautiousness ahead of the UK inflation report, which will be
published in the next few hours. This data looks especially interesting in wake
of recent talks of BoE members about monetary policy tightening measures,
triggered by positive results of the UK economy. Besides the UK inflation report,
nothing interesting is scheduled in the data calendar for today, so the impact
after the UK data and market trend will remain key determinants for the pair this
Tuesday.

 

The USD/JPY pair remains highly offered
this Tuesday, trading on a striking distance of its 5-month lows, marked in the
vicinity of 108.00 last week. Persisting risk aversion remains the key driving
factor for the pair at the first half of this week, thus exerting notable
support to the safe-haven yen. Moreover, ongoing correction of the US dollar
also negatively affects positions of the pair, sending it towards recent dips.
It seems that the pair even ignored dovish talks of the BoJ Governor H.Kuroda,
who once again reiterated the need of maintaining current policy, as inflation
level is still far away from its target level. On the data front, today the US
economic calendar once again will leave investors without any surprise, so
broad market trend, backed by risk sentiment and softness around the US dollar,
will keep navigating the pair during this trading session.

 

The AUD/USD pair trades with a bullish bias
for the third consecutive session, extending its rebound from 7-week lows,
marked at 0.7759 spot last Thursday. Recent upside trend of the pair is mostly
attributed to broad softness around the US dollar, as American bulls remain exhausted
after recent strong upside rally of the greenback. Adding to this, positive
Australia’s business confidence numbers, published during the Asian trading
session, also exerted some support to the Aussie. However, further gains of the
pair look capped, as risk-off sentiment, additionally underpinned by the upcoming
US inflation report, negatively affects risky Australian dollar. Today, in absence
of any market-moving data in the US data calendar, the pair will remain
influenced by the US dollar dynamics and risk sentiment during this trading
session.

 

Major events of the day:

UK CPI – 11.30 (GMT +2)

 

Support and resistance levels for
the major currency pairs:

EURUSD               S. 1.2211 R. 1.2337

USDJPY                 S.
108.20 R. 109.10

GBPUSD               S. 1.3755 R. 1.3915

USDCHF               S. 0.9345 R. 0.9427

AUDUSD              S. 0.7790 R. 0.7898

NZDUSD               S. 0.7211 R. 0.7303

USDCAD               S. 1.2518 R. 1.2654

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