The British monthly GDP is announced on Friday at 09:00 MT time.
Forex today: the USD is lower and lower
- Traders will look at the G7 summit that will take place on June 8-9 in Quebec to get clues on the world economic growth. However, there are worries about a G7 statement. The France President Mr. Macron has signaled that a progress on tariffs, Iran nuclear agreement and Paris climate accord must be made before he'll be willing to sign a joint statement. Let’s see whether an agreement will be achieved.
- The US dollar index continues its downward movement. It is trading below $93.30. The next support lies at $93. No important economic data will be released today. As a result, the further fall is anticipated.
- The pound continues to rise. On Wednesday, GBP/USD managed to close above 1.34. Up to now, the pair has tested the next resistance at 1.3460. 50-week MA weighs on the pair. No more important economic data will be released either today or tomorrow. As a result, there is a risk that GBP/USD won’t be able to break the resistance. A pullback to the pivot point at 1.33 may be anticipated.
- Today’s Australian trade balance data was at the same level as anticipated (0.98B), however, it didn’t support the AUD. The AUD/USD pair couldn’t break the resistance at 0.7660 again, 100-week MA weighs on it. Up to now, the pair is moving to the support at 0.7640. No more significant economic data will be released today. As a result, the fall may continue.
- Oil goes down as crude oil inventories data was greater than anticipated (2.1M vs -2.0M). 50-hour MA doesn’t let Brent go up. However, the trading isn’t extensive. Brent is anticipated to trade within $74.60-76.65. WTI couldn’t break the resistance at $65.20 (100-day MA) and it’s moving down. The support lies at $64.60. An interesting comment on future oil prices. According to an analyst of the Andurand Commodities Fund, oil can reach the level of $100 this year and $150 in 2020-2021. The point is that oil traded at $100, and even $150 in a much weaker economic environment of 2008.
- As a result, the Canadian dollar is unstable. USD/CAD trading isn’t extensive. Oil weigh on the CAD, at the same time, the US dollar is weakening. Traders will take into consideration a speech of the BOC Governor Mr. Poloz (18:15 MT time). If the Governor gives any positive clues on the future monetary policy, the CAD will appreciate. The support is at 1.2930 (50.0 Fibo level). Otherwise, the USD/CAD pair will go up. The resistance is at 1.2975.
- Bitcoin is near the resistance at $7,600 again. 50-day MA is crossing the 100-day MA. It’s a positive signal for the cryptocurrency. If Bitcoin is able to break the resistance, the further aim is at $8,000.
That is all for today. Follow markets news with us!
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 US unemployment claims are out on Thursday at 15:30 MT time.
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.