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Monday, February 27th
The GBP/USD pair is extending its bearish pattern at the start of a new week, stepping below the level of 1.23. Today the pound once again is losing ground on weekend’s headlines, citing that UK PM T.May and First Minister of Scotland N.Sturgeon are preparing to trigger a new Scotland independence referendum in March, straight away after implementing Article 50. Moreover, recent news from UK has provoked huge wave of risk aversion sentiments across the market, additionally weighing the pound. Today another portion of the US data set will be able to bring fresh trading opportunities later during NA session, while tomorrow’s D.Trump’s speech before Congress will remain eagerly eyed for any clarity over his further fiscal policy.
The Aussie has lost a smile vs. its American competitor, trimming some of its early gains. In Asia the AUD/USD pair caught fresh bids, as Australian corporate profits data showed solid increase, thereby strongly supporting the AUD. However, broad risk-off sentiments, triggered by recent news from UK, have forced the pair to retreat from its earlier peaks, marked at 0.7707, to its current region of 0.7685. Moreover, slightly softer tone around commodity space, seen this morning, is also negatively influencing Australian currency. Now investors await for first D.Trump’s address to Congress for any details over his further policy steps. In the meantime, US fundamentals, due to release during NY trades, will also have some impact on the pair.
The dollar/yen pair fell on today’s opening, refreshing its two-week lows at 111.91, in wake of strong risk-off sentiments, based on UK PM T.May’s call to trigger another Scotland independence referendum. On the other hand, reports that the BoJ is going to expand its bond-buying program have forced the pair to bounce off its Asian lows and to retake the level of 112.28. Later today, US Core Durable Goods Orders and Pending Home Sales will be able to determine next leg of directional move for the pair.
Seems that the euro bulls are back in business, allowing the EUR/USD pair to recover some ground after Friday’s drop. Pair’s recovery could be attributed to negative risk environment across the market amid recent headlines of a new independence Scottish referendum, that is supporting the euro as of late. Later today, investors will look forward to the US data bloc, while fresh developments surrounding French elections will also have strong impact on the pair. Moreover, the next big event for the buck remains D.Trump’s address to Congress, which could shed some light on his further economic and political changes.
The main events of the day:
US Core Durable Goods Orders – 15.30 (GMT +2)
US Pending Home Sales– 17.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0516 R. 1.0638
USDJPY S. 111.31 R. 113.35
GBPUSD S. 1.2368 R. 1.2612
USDCHF S. 1.0004 R. 1.0114
AUDUSD S. 0.7629 R. 0.7739
NZDUSD S. 0.7163 R. 0.7253
USDCAD S. 1.3009 R. 1.3161
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