Daily economic digest from Forex.ee
Stay informed of the key economic events
Wednesday, February 8th
The dollar/yen pair is showing pretty volatile trades this Wednesday on the back of recent news from the BoJ. The pair reached its maximums in Asia at 112.52 spot, as the Bank of Japan announced about expansion of its bond buying program. However, pair’s upside rally was short lived, as plenty of offers, based on dollar’s weakness, absorbed the demand and the pair dropped to its overnight lows, marked at 112.04. Currently the pair is trading around the level of 112.40, as the US currency has regained its bid tone, while the market stays influenced by recent headlines related to CB of Japan. During this day the pair will continue to trace USD price dynamics and global RO-RO trend amid data-quiet Wednesday’s docket.
The GBP/USD pair remains consolidative today after its recent upside rally. Yesterday the pair performed a huge jump of almost 2 cents in wake of hawkish comments by BoE’s External MPC Member K.Forbes, who stressed that further interest rate increase remains reasonable if the UK economy continues to show solid growth. However, greenback’s pickup in demand has slowed down pair’s rally, capping it in the region of 1.25 level. Moreover, cautious sentiments across the market are also limiting pair’s actions, as the market has set up its attention on the outcome of Article 50, that is set to vote in the House of Commons this Wednesday. Furthermore, today only BoE MPC Member J.Cunliffe’s speech will be able to bring some impetus on the pair amid empty economic data calendar.
The EUR/USD keeps its bearish tone after brief correction, seen in early Asia. The main currency pair is following global market’s trends today, influenced by broad demand for the US currency, continuing its southern march for the third session in a row. Moreover, poor economic fundamentals from Eurozone, in particular German industrial production data, seen this Tuesday, are additionally weighing the pair. Today amid absolutely empty event calendar the pair will remain at the mercy of USD price actions.
The Loonie remains little changed against its American neighbor since today’s opening. Seems that US bulls have run out of steam, allowing the USD/CAD pair to correct lower after bullish run, triggered by strong demand for the greenback, that was witnessed yesterday. Moreover, weaker tone around oil prices in wake of the API report that showed second largest increase in US crude oil stockpiles, is also adding some selling pressure to commodity linked assets, such as the Canadian dollar. Looking ahead, today traders’ attention will stay focused on US Crude Oil Inventories report, which remains especially interesting in wake of recent data from the American Petroleum Institute.
The main events of the day:
US Crude Oil Inventories – 17.30 (GMT +2)
Решение по процентной ставке РБНЗ – 22.00 (GMT +2)
RBNZ Governor G.Wheeler’s speech – 23.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0602 R. 1.0788
USDJPY S. 111.19 R. 113.17
GBPUSD S. 1.2267 R. 1.2665
USDCHF S. 0.9856 R. 1.0066
AUDUSD S. 0.7562 R. 0.7712
NZDUSD S. 0.7219 R. 0.7415
USDCAD S. 1.3018 R. 1.3296
The best conditions for making a start on STP only at Forex.ee! Register an account now
and feel the difference from the first trade!
Your European ECN-broker,
Forex.ee
