Euro and Pound are achieving new records and gold is reaching the 1345 level
The Asian session was pretty dull as it lacked any market-moving catalysts, so the majority of traders continued to sell the dollar. In the meantime, the retreat in iron ore prices burdened the Australian Dollar.
The Japanese yen has been strongly supported by the release of optimistic economic data, with the USDJPY taken out the 110.20 support. The greenback is pressured again with its most notable weakness against the cable.
The Japan PMI manufacturing increased to 54.4 in January, up from 54.0 and exceeded expectations of 54.3. Moreover, Japan’s adjusted trade balance has shown a surplus of JPY 86.6 B, below popular expectations of JPY 270 B.
The Japanese Nikkei closed down by 0.76% at 23,940.78. S&P 500 and NASDAQ extended the record runs but DOW closed flat.
Jerome Powell was finally confirmed by the Senate to be the 16th chairman of the Federal Reserve, with the final vote of the senate overbearing by 84 to 13. Powell will officially succeed Janet Yellen as early as February and has been given a 4-year term.
As for commodities, U.S. West Texas Intermediate (WTI) crude futures were at $64.50 a barrel, up 3 cents from their last settlement. Brent crude oil futures were at $69.86 a barrel, down 1 cents from their last close.
Ahead in the day, all eyes would be on the release of UK’s ILO unemployment rate and average weekly earnings data for the three months to November, to gauge strength in the nation’s labor market.
GBPUSD is expected to find support at 1.3955, and a fall through could take it to the next support level of 1.3870. The pair is expected to find its first resistance at 1.4080, and a rise through could take it to the next resistance level of 1.4125.
EURUSD: Breach of 1.2325 suggests EUR/USD’s rally is resuming. Intraday bias is back on the upside.
GBPUSD: GBP/USD’s rally continues today and reaches 1.4025 so far.
USDCAD: USD/CAD is staying in consolidation at 1.2355 and intraday bias remains neutral.
USDCHF: At this point, USD/CHF is staying above 0.9535 temporary low and intraday bias remains neutral.
USDJPY: USD/JPY’s fall resumed by taking out 110.120 and reaches as low as 109.81 so far.
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