Daily economic digest from Forex.ee
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Tuesday, January 31st
The yen remains bullish against its American competitor after BOJ monetary policy decision, announced this morning. Today the BoJ during its meeting left its interest rate unchanged also revising its outlook regarding further economic growth pace, majorly leaving it untouched. Meanwhile, the USD/JPY pair remains additionally weighed, as risk-off sentiments remain at full steam underpinning yen’s safe-haven status, triggered by recent news that US president has fired Attorney General S.Yates for criticism regarding his anti-immigrant order. Today investors will continue tracking fresh headlines from US political field, while RO-RO trend will remain as a key driver for the pair this Tuesday.
The EUR/USD remains well bid refreshing its today’s highs amid broad US dollar’s weakness. Today the greenback ran into offers across the board, as D.Trump fired S.Yates, acting Attorney General, who stated that Trump’s travel ban is “not lawful”. Currently the pair is trading at 1.0715 level, awaiting for flurry of fundamentals with German Unemployment Change and EU flash inflation report that are scheduled on European trading session, which will be able to bring some short-term trading opportunities across the market, while fresh Trump headlines will continue to hog the limelight during this Tuesday.
The pound is losing positions against the greenback in early Europe after brief northern rally during Asian session. Seems that US bulls have regained control over the pair somewhat this morning, dragging the GBP/USD pair away from its overnight highs, posted at 1.2519 level, however, leaving the major in the region of 1.25 level. Moreover, uncertainty around D.Trump’s policy and his recent actions are weighing on the greenback, limiting pair’s further losses. Looking ahead, only US CB Consumer Confidence will be able to bring some impetus to the pair, so the major will continue to follow broad market’s sentiments, led by recent Trump headlines.
The AUD/USD gives away most part of its positions gained in Asia. Earlier this day the pair met fresh bids, as positive data from Australian economy and recent weakness surrounding the greenback in light of US president’s travel ban, allowed the major to refresh its overnight highs at 0.7571. However, the pair has changed its course and now is trading within striking distance of its daily lows, posted in the region of mid-point of 0.75, as prevailing risk-off sentiments are negatively influencing higher-yielding assets, such as Australian currency. Now focus remains on US macro data that are scheduled on NA session, but until then the major will continue following US dollar’s trend to determine its further direction.
The main events of the day:
German Unemployment Change – 10.55 (GMT +2)
Prelim. EU CPI – 12,00 (GMT +2)
Canadian GDP – 15,30 (GMT +2)
US CB Consumer Confidence – 17.00 (GMT +2)
NZ Employment Change – 23,45 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0564 R. 1.0806
USDJPY S. 112.55 R. 115.57
GBPUSD S. 1.2382 R. 1.2652
USDCHF S. 0.9864 R. 1.0086
AUDUSD S. 0.7510 R. 0.7588
NZDUSD S. 0.7213 R. 0.7331
USDCAD S. 1.3027 R. 1.3213
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