The dollar is awaiting the latest FOMC headed by Janet Yellen on Wednesday
The Asian trading session was devoid of any economic releases, so market participants were trying to follow their US counterparts ahead of this week’s catalysts.
Following, the greenback spectacular retreat last week, the currency got a little down time from its losses against its major peers for the day. The start of this week can be interpreted as being mixed as there was a bit of remaining optimism from last Friday American trading session, which encouraged bullish behavior even as global trade-related concerns got involved in the mix.
Forex markets in the Asian session were trading pretty steady as the markets are preparing for an extremely busy week ahead. Trump will not be announcing his withdrawal from the NAFTA during his State of Union address on Tuesday according to some reports, with some US representatives expressing an optimistic attitude toward the deal during the weekend.
As for European news, the ECB Governing Council member Klass Knot has delivered some optimistic comments over the weekend.He also reiterated that there was no reason to continue with the EUR 30 B a month APP following its conclusion in September.
As for any Brexit issue, EU’s Brexit negotiator Michael Barnier could formally adopt the directives today that the UK must apply EU laws as if it were a member state during the transition period. Such compliance is expected to be unconditional. This has left the UK between a rock and a hard place, while Brexit secretary David Davis will request the power the object to such demands.
As for commodities, U.S. West Texas Intermediate (WTI) crude futures were at $66.16 a barrel, up 3 cents, or 0.05%, from their last settlement. Brent crude futures trade at $69.91 per barrel, dipping 24 cents or down 0.34%.
This week promises to be a pretty interesting one, with Janet Yellen’s last FOMC meeting as Fed chair to be the main highlight.
EURUSD is expected to find support at 1.2370, and a fall through could take it to the next support level of 1.2325. The pair is expected to find its first resistance at 1.2480, and a rise through could take it to the next resistance level of 1.2540.
EURUSD: Intraday bias in EURUSD remains neutral at this point but a further rally is expected as long as 1.2220 support holds.
GBPUSD: Intraday bias in GBPUSD remains neutral for consolidation below 1.4345 temporary top.
USDCAD: Intraday bias in USDCAD remains neutral for consolidation above 1.2280 temporary low.
USDCHF: Intraday bias in USD/CHF remains on the downside for the moment.
USDJPY: Intraday bias in USD/JPY remains on the downside at this point.
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