The Dollar is recovering ahead of the FOMC meeting tomorrow
Economic releases from Japan mostly printed on the negative side, which didn’t stop the bulls from gravitating toward the low yielding yen amind an increase in overall risk reversion.
Japan’s household spending surprisingly revealed a decrease in December, as annualized retails sales soared higher than popularly expected.
In the meantime, the unemployment rate increased to 2.8% in December. However, the jobs-to-applicants raion improved to 1.59.
As for forex markets, the dollar was in the spotlight today, partly thanks to profit-taking ahead of this week FOMC statement and Trump’s first state of the Union address.
POTUS will most likely be talking about his market-friendly policies in regards to lower trade barriers for American exports; infrastructure plans and an endorsement for a stronger dollar.
RIsk aversion seems to be the dominating them among Asian equities, commodity prices and high-yielding currencies, with the Nikkei closing lower by 1.43% at 23,291.97.
As for commodities, crude futures fell 1.04% to $64.88 a barrel, while Brent inched down 0.72% to $68.69 a barrel.
Going ahead, investors would focus on UK’s net consumer credit and mortgage approvals data, both for December, slated to release in a few hours.
GBPUSD is expected to find support at 1.4005, and a fall through could take it to the next support level of 1.3955. The pair is expected to find its first resistance at 1.4125, and a rise through could take it to the next resistance level of 1.4200.
EURUSD: EUR/USD’s consolidation from 1.2535 is still in progress and intraday bias remains neutral.
GBPUSD: GBP/USD dips to as low as 1.4025 so far as the retreat from 1.4345 extends.
USDCAD: USD/CAD’s consolidation from 1.2280 temporary low is still unfolding and intraday bias remains neutral.
USDCHF: Intraday bias in USD/CHF remains neutral as consolidation from 0.9280 is extending.
USDJPY: Intraday bias in USD/JPY remains neutral for consolidation above 108.25 temporary low.
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***Information contained in this newsletter are gathered from third parties and should not be regarded in any way as trade advice or recommendations by CM Trading. CM Trading does not recommend or advise traders or investors in their decision making but merely provides information from the market for its clients as additional information is made available as per the events occurring in the financial markets.
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