The British monthly GDP is announced on Friday at 09:00 MT time.
Daily news: Britain's retail sales to be released today
- The main focus today is on the UK retail sales, which are expected to fall by 0.2% from the June’s increase by 0.7%. If it’s true, the analysts expect GBP/USD turn back towards its 1.3032 support level. In addition, the Times reported that Prime Minister Theresa May had rejected an improved offer from the EU to solve the Irish border issue. However, if the data today is positive, the resistance level to keep an eye on is at 1.3320.
- New Zealand published new data for the June’s quarterly GDP. It grew by 1.0% which is higher, than the forecast of 0.8%. These data and China’s premier Li Keqiang yesterday’s speech resulted in the kiwi reaching its last month highs. Right now NZD/USD is trading near the 50-day MA at 0.6650. After crossing this level, it can possibly move up further to the resistance at 0.6720. In the opposite situation, bears will push the price to the support at 0.6550.
- The Swiss National Bank had a meeting today. There were no major announces nor changes. The bank interest rate remains unchanged at 0.75%. The inflation stays stable at 0.9% in 2018, then goes down to 0.8% in 2019. Following this information USD/CHF experienced a sell-off today. Right now the pair is trading just above its support at 0.9640. Any positive news concerning the USD will turn the heads of traders to the resistance at 0.9750.
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The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
The USD continues dipping, while the GBP is rising on hopes for the Brexit deal done today.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.