|Day's Range||1.132 - 1.136|
|52 Week Range||1.1223 - 1.2478|
The Pound came out on top last week. Hopes of a delay to Brexit and expectations that Britain will not leave without a deal provided the upside. Trade talks also influenced as did central banks.
The U.S. dollar is on track to end the week in negative territory on Friday amid statements from U.S. officials including President Donald Trump that indicated positivity on the trade front.
U.S. stocks retreated from the highest levels of Friday as headlines from wire services of President Donald Trump's Oval Office comments suggest doubt on progress on U.S.-China trade talks. In a letter written by Xi Jinping and read out by Trump, the Chinese leader said he hopes the two sides "redouble efforts to meet half way." Trump meanwhile said perhaps he and Xi will work out the final points or perhaps not. U.S. Trade Representative Robert Lighthizer said a few "very big" hurdles remain. The Chinese delegation will stay two additional days, Treasury Secretary Steven Mnuchin said.
The Euro rallied during the week, breaking the top of a hammer from the previous week. This is a good sign, and it looks very likely that the value hunters are coming back into defend the 1.1250 level underneath.
The Euro fell initially during the trading session on Friday but has turned around to show signs of life midday, because of this, it looks as if the 1.1350 level should offer buying pressure. With that in mind, it’s very likely that we will chop around over the next 24 hours but it looks to me as if the market is ready to try to go higher.
Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 1.1334.
Euro zone headline consumer inflation slowed slightly in January because of a sharp deceleration of energy price growth, but core inflation watched closely by the European Central Bank in policy decisions edged slightly higher, data showed on Friday. The European Union's statistics office Eurostat said consumer prices in the 19 countries sharing the euro fell 1.0 percent month-on-month in January for a 1.4 percent year-on-year rise, in line with previous estimates and market expectations. Without the volatile components of energy and unprocessed food, or what the ECB calls core inflation, prices fell 1.2 percent month-on-month for a 1.2 percent year-on-year increase, accelerating from 1.1 percent in annual terms in December.
The pair witnessed a bit of selling from the 1.1350 level in Thursday’s session, as it reached down towards the 1.1320 level. The area above is expected to remain noisy and volatile as the resistance extends up to the 1.14 level. Short term pullbacks in the market will continue to attract a lot of attention and also the Federal Reserve’s soft attitude towards rate hike will support the pair going higher. …Read MoreGBP/USD
The pair is to continue range bound action for a majority of the day but likely to see a change in momentum post-speech by central bank members later in the day.
A choppy start to the day sees the Aussie Dollar on a rollercoaster. The focus will be on economic data out of the Eurozone, trade talks and Brexit.
The dollar was steady and on track for its first weekly loss in a month in early trading in Europe Friday, although it had recovered most of the ground it lost Thursday in reaction to some weak numbers from the U.S. manufacturing sector.
Investing.com - The U.S. dollar edged up on Friday in Asia even after a set of weak U.S. data released overnight. The Aussie Dollar was little changed after sliding to a 10-day low yesterday.
The U.S. dollar climbs higher Thursday despite weaker-than-expected economic data, after the Federal Reserve’s January meeting minutes a day earlier failed to put another dovish damper on market sentiment.
The Euro continues to grind overall, as we see a lot of volatility around the 1.1350 level. This is an area that should continue to be very noisy, due to microstructure. At this point, I think the larger consolidation needs to be paid attention to though.
Investing.com - The U.S. dollar traded near session highs Thursday, despite a slew of negative U.S. economic reports pointing to signs of slowing growth in the underlying economy.
Based on the early price action, the direction of the EUR/USD on Thursday is likely to be determined by trader reaction to the downtrending Gann angle at 1.1364.
The greenback recovered from its sudden fall after disappointing economic data on Thursday raised concerns about the strength of the U.S. economy and supported the Federal Reserve’s decision to hold rates steady for the foreseeable future. New orders for durable goods, excluding volatile items, fell unexpectedly in December, while business activity in the mid-Atlantic region declined to its weakest level since May 2016, according to the Philadelphia Fed's monthly survey.
The pair is currently stationed around the 1.1350 level as there are a lot of developments around the market and is also looking for clarity on the future momentum. The weak momentum around the USD is likely to support the EURO to reach higher, and if it breaks above 1.15 level, it will be extremely bullish and will attract many buyers.
The pair trades range bound as traders await macro data updates for short term profit opportunity and ECB Preat speech for directional cues.
Economic indicators out of Japan this week have proven to be more of an economic alarm bell than an indicator. What’s next for the BoJ?
Economic data out of Japan spells more trouble, with a particularly busy economic calendar placing focus on the EUR and USD.
Investing.com -- The euro turned higher against the dollar in early trading in Europe Thursday, as purchasing manager indices from France and Germany signalled that the euro-zone economy may be bottoming out after its slowdown at the end of 2018.