Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
Forex today: risk-off sentiment is shaking markets
- The US dollar managed to recover after a slight fall. The US dollar index is near $93.80. Today traders will pay attention to Fed’s meeting minutes at 21:00 MT time. If the speech is more hawkish, the greenback has chances to stick to new highs near $94.
- The euro is continuing to fall. EUR/USD is near the support at 1.1720. No important economic data will be released today. If the pair is able to break 1.1720, the next weekly pivot point support is at 1.1680. Moreover, on the weekly chart, we can see that the upper boundary of the Ichimoku cloud lies at 1.1680 as well. It will strengthen a possibility of the pair’s rebound.
- The pound fell because of weak economic data and continuing pressure of the Brexit deal. A new round of Brexit negotiations is taking place in Brussels from Tuesday to Thursday.
GBP/USD broke the support at 1.34 and tested the next one at 1.3350. On Thursday, retail sales data will be released and the BOE governor will give a speech. Whether retail sales’ data will be greater and Mr. Carney will give positive clues on the UK economy, there are chances of the pound’s recovery.
- US president’s comments increased risk-off sentiments. Mr. Trump said that he isn’t pleased with talks with China. Moreover, Donald Trump has doubts on the summit with North Korea. The third issue that the US has to solve is Iran nuclear deal. The US withdrew from the deal, however, it hasn’t produced a realistic path to a new one yet.
- USD/JPY fell amid new risks. The pair broke below 61.8 Fibo level and the support at 110.35. Up to date, USD/JPY is trading near 200-day MA. Whether the pair is able to break the MA, there are risks of the further fall to 109.77. If risks ease, the pair has chances to return to levels above 110.35.
- The New Zealand dollar is declining. NZD/USD tested levels above 0.6940 because of a positive milk price forecast by Fonterra. It is well-known that the dairy industry is a huge driver of the New Zealand’s economy. However, the forecast didn’t support the NZD/USD pair. Unexpected comments of the Reserve Bank of New Zealand pulled NZD/USD down. Although currently, it doesn’t aim at introducing the unconventional monetary policy, there is a possibility of implementing a quantitative easing in a crisis. As a result, the pair broke the support at 0.69. No significant data will be released today. But on Thursday, trade balance’s data will be released. The forecast is much greater than the previous data. If the actual one is greater than the forecast, there is an odd of the pair’s rebound above 0.69.
That is all for today. Follow markets news with us!
The volatility that the markets experienced last week promises the second tidal wave! What should your favorite assets anticipate during the first week of February?
The US will reveal Non-farm payrolls on January 7, Friday, at 15:30 GMT+2 (MetaTrader time).
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.