EUR/USD

The pair settled the session lower and failed to benefit from a higher EUR/GBP cross amid broad based GBP weakness after market participants reacted to the release of the minutes from the most recent MPC policy meeting. There was little in terms of EU related commentary, but WSJ reported citing ECB’s Noyer that there is no particular interest in cutting rates by a few cents if it only impacts core countries. He also said that excess liquidity is very significant and will remain so even after upcoming LTRO repayments. Separately, ECB's Asmussen said that the recovery this year will be mild and gradual. He is cautiously optimistic on economic outlook. In terms of technical levels, supports are seen at the 55DMA line at 1.3283, the 21DMA lower Bollinger line at 1.3274 and then at 1.3250. On the other hand, resistance levels are seen at the 21DMA line at 1.3450, 1.3482 and then at 1.3520.

GBP/USD

GBP underperformed its peers on Wednesday following the release of the most recent BoE meeting minutes which revealed that 3 MPC voted for more QE. The MPC also considered cutting bank rate, buying other assets and changing remuneration of banks' reserves. The pair fell almost 100 pips shortly following the release of the statement by the BoE, which in turn supported the USD index. In terms of macro data, the Office for National Statistics (ONS) said that employment rose by 154,000 to 29.73m in the three months to December, the fastest rise since last summer. The rise was driven by full-time employment, up 197,000 on the previous quarter and 394,000 over the year, the largest annual increase since 2005. However the growth in employment came at the expense of earnings. Average earnings, excluding bonuses, rose by 1.3% Y/Y, the lowest rate for two-and-a-half years. In terms of technical levels, supports are seen at 1.5234 which is the 2012 Jan-13th low, followed by the 61.8% retracement of the 1.4228-1.6747 move at 1.5190 and then at 1.5125 which is the July- 21st 2010 low. On the other hand, resistance levels are seen at 1.5452, 1.5544 and then at the 10DMA line at 1.5570.

USD/JPY

The pair recovered from overnight losses after Japanese Finance Minister Aso said there are no plans to buy foreign bonds with PM Abe saying that the need for government-private fund to buy foreign bonds has lessened. Aso also said that the talk of currency wars is going too far and the JPY weakened without intervention. In terms of technical levels, supports are seen at 93.00, the 21DMA line at 92.44 and then at 92.22 which is the Feb-15th low. On the other hand, resistance levels are seen at 93.96, 94.22 and then at 94.41.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD consolidates weekly gains above 1.1150

EUR/USD consolidates weekly gains above 1.1150

EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.

EUR/USD News
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD stabilizes near 1.3300, looks to post strong weekly gains

GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains. 

GBP/USD News
Gold extends rally to new record-high above $2,610

Gold extends rally to new record-high above $2,610

Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.

Gold News
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap

SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures