The British monthly GDP is announced on Friday at 09:00 MT time.
Market updates on September 20
Key events ahead:
Speech by the FOMC member Williams – 15:15 MT (12:15 GMT) time
Canadian core retail sales – 15:30 MT (12:30 GMT) time
Speech by the FOMC member Rosengren – 18:20 MT (15:20 GMT) time
US-China trade talks
- The British pound was supported today after the interview given by the European president Jean Claude Juncker, where he said that the Brexit deal would happen. The cable spiked above the 1.25 level and has tested the resistance at 1.2557. If this level is broken, the next resistance levels will lie at 1.2577 and 1.2598. In case of any uncertainties, bears will be looking for the fall towards the support levels at 1.2506, 1.2476 and 1.2444. On H4, we can see a bearish divergence with MACD, which may signal about a possible short-term reversal
- USD/CAD is awaiting the release of Canada’s core retail sales. On H4, the pair managed to stick above the 200-period SMA. At the moment of writing, USD/CAD has been moving upwards to the resistance at 1.3277. If the release disappoints the market, this level will be broken. The next resistance will be placed at 1.3289. In case of an alternative scenario, the pair will slide back below the 200-period SMA to the support at 1.3253. The next support will be placed at 1.3246 (100-period SMA).
- EUR/USD is consolidating between the 1.1058 resistance level and the 1.1037 support level on H4. If bulls manage to break their way to the upside, the next resistance levels will lie at 1.1068-1.1074. On the other hand, bears will pay attention to the break of the 1.1037 level. After that, the next support will lie at 1.1014.
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.