Let’s have a look at the economic calendar.
Weekly Forex Report: January 22-26
What happened in financial markets last week apart from the fact that Bitcoin plunged from $14,000 below $10,000 and the recovered a bit? Many things actually.
The USD index fell to the lowest levels since the end of 2014 as the US government was at risk of shutdown. It doesn’t seem like the American currency has any kind of technical support. Pay all your attention to advance GDP and core durable goods orders on Friday.
The ECB president Mario Draghi will take the stage on Thursday. Traders will watch his press conference looking for hints that the ECB doesn’t approve the advance of the euro. If that’s what Draghi says, EUR/USD will fall in the short-term. Key support is at 1.20. If it seems that the ECB doesn’t care about how expensive the euro has become, the pair will crush resistance and renew high. Levels to watch on the upside are 1.24 and 1.26. In addition, keep an eye on parties’ negotiations in Germany and European PMIs on Wednesday.
If you trade USD/JPY, the Bank of Japan’s meeting on Tuesday will be important. The central bank will likely try to ease concerns that it’s preparing for the reduction in monetary stimulus, and the pair will get a chance for a short-term recovery. Still, it would be hard to provoke a big selloff in JPY.
Bank of Canada’s meeting left USD/CAD in a sideways range around 1.2450 as a rate hike came as no surprise. GBP/USD rose above 1.3900 because of the USD weakness. The upcoming British labor market data and on Wednesday and preliminary GDP on Friday will, however, test the pair.
World Economic Forum will take place in Swiss Davos. World leaders might use this event to make some important statements, so follow the new at fbs.com.