The US dollar’s weakness offered a boost to emerging-market currencies and oil.
Forex today: mixed movements
- Geopolitical tensions seem to weaken. Japanese Prime Minister Mr. Abe and US President Mr. Trump agreed to continue a bilateral relationship, parties are aimed at trade deal’s talks. Moreover, according to Bloomberg, Russian President Mr. Putin was said to be looking for the decrease of tensions with the US.
- The USD is surging for the third day. The US dollar index broke the level of $89.40 and is climbing further.
- Risk-on sentiment led to the further rise of the USD/JPY pair. The pair is climbing to the resistance at 107.50. If it is able to break this level, it will move further to 107.90. Tenkan-sen line is the support for the pair. If it declines and breaks it, the next support will lie at 107.
- Stocks are continuing to rise and the volatility is dipping. US earnings season presents an increase in corporate profits. As a result, positive outlook on the global growth amid trade tensions enhances an investors’ sentiment.
- The Australian dollar is continuing to rise despite negative employment change’s data (actual 4.9K vs forecast 20.3K). The unemployment rate remained unchanged at 5.5%.
Let’s look at the chart. The AUD/USD pair broke the resistance at 0.7804, moved further but met another resistance presented by the 200-day MA. As a result, the pair rebounded. If the pair is able to break the level of 0.7804 again, it will repeat it the movement to the 200-day MA.
- Yesterday the GBP/USD pair broke down the pivot point at 1.4230, but did not reach the support at 1.4145 and turned around. Investors are waiting for the retail sales’ data that will be released today at 11:30 MT time. The forecast is not positive, however, if the actual data is greater than expected, the pound has chances to break the pivot point and appear in the positive area for the further rise.
On H4, we see that the 50-day MA is putting pressure on the trade. If the pair is able to break the MA, it will move further.
- The greenback is depreciating against the Canadian dollar. Yesterday the USD/CAD pair broke the resistance at 1.2620 (200-day MA) but did not find a support and fell. The “Head and shoulders” pattern is signaling about the turn of the downward movement. That is why we can anticipate the rise of the USD/CAD pair. There is no important data for the Canadian dollar today, however, tomorrow traders will pay attention to Canadian CPI and core retail sales (15:30 MT time). The forecast is lower than the previous data. If actual figures will not be encouraging, the USD/CAD pair will have chances to turn around and go up.
- Oil is climbing further. There are no negative factors that are leading to the oil’s depreciation. Brent managed to rise to $74 a barrel, WTI is near $70. Investors are still waiting for the meeting of the OPEC, Russia and their allies that will be held tomorrow.
That is all for today. Follow markets news with us!
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
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.