USD/JPY: Support seen at 104.87 ahead of 104.3

Danske Research Team Danske Bank A/S

EUR/USD

Long upper shadows seen last 2 sessions is eroding upside momentum with trade settling lower in consolidation, keeping the bearish run from 1.1279 high firmly in play and bears seek break of lower support at 1.0850 to resume downtrend. [W.T]

USD/CHF

Pullback staged this week stalled in short-term consolidation and need a break of lower support at 0.9904 to trigger renewed weakness to .9843 stronger support. On the upside, lift above the 0.9999 resistance will set bulls back in control. [W.T]

USD/JPY

View unchanged from this morning with the renewed strength triggered last session above 104.87 resistance and poised for extension to next strong hurdle at 105.63. Intraday dips to attract buyers with support seen at 104.87 ahead of 104.30. [W.T]

EUR/CHF

Trade stuck in short-term consolidation with prices well-confined within the wider and stronger 1.0797-1.0864 band and with the preceding downmove from 1.0976 high still dominating, strategy favours selling towards the higher end of current range. [W.T]

GBP/USD

Within broader consolidation, weakness appearing with the appearance of an Engulfing-pattern last session and turning focus towards the 1.2083 support and break will expose deeper setback with the strong support at 1.1841 targeted. [W.T]

EUR/GBP

Consolidation seen whole of this week above the .8880 support is hammering out a base at the latter and need a swift lift above .8980 resistance to trigger stronger rebound to .9027 then higher .9142. [W.T]

Download The Full Technical Update

Author

Danske Research Team

Danske Bank A/S

Research is part of Danske Bank Markets and operate as Danske Bank's research department. The department monitors financial markets and economic trends of relevance to Danske Bank Markets and its clients.

EUR/USD weakens as US jobs data trims Fed rate cut bets

The EUR/USD pair trades in negative territory for the third consecutive day near 1.1860 during the early European session on Thursday. Traders will keep an eye on the US weekly Initial Jobless Claims data. On Friday, the attention will shift to the US Consumer Price Index inflation report.

GBP/USD bullish outlook prevails above 1.3600, UK GDP data looms

The GBP/USD pair gains ground near 1.3635, snapping the two-day losing streak during the early European session on Thursday. The preliminary reading of UK Gross Domestic Product for the fourth quarter will be closely watched later on Thursday. The UK economy is estimated to grow 0.2% QoQ in Q4, versus 0.1% in Q1.

Gold remains on the defensive below two-week top; lacks bearish conviction amid mixed cues

Gold sticks to modest intraday losses through the Asian session on Thursday, though it lacks follow-through selling and remains close to a nearly two-week high, touched the previous day. The commodity currently trades above the $5,070 level, down just over 0.20% for the day, amid mixed cues.

UK GDP set to post weak growth as markets rise bets on March rate cut

Markets will be watching closely on Thursday, when the United Kingdom’s Office for National Statistics will release the advance estimate of Q4 Gross Domestic Product. If the data land in line with consensus, the UK economy would have continued to grow at an annualised pace of 1.2%, compared with 1.3% recorded the previous year.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.