MARKET DEVELOPMENT US Dollar, GBP/USD, USD/CAD EvaluationUSD: The issues surrounding the unfold of the coronavirus continues to d
USD: The issues surrounding the unfold of the coronavirus continues to drive sentiment and thus hold safe-havens underpinned. Consequently, the US Greenback trades above the 98.00 deal with whereas excessive beta currencies (AUD, NZD, CAD) are modestly decrease. As such, with little indicators of fabric stabilisation within the variety of instances being reported, safe-havens could stay higher bid.
GBP: A deeper pullback in GBP/USD because it fails to get better, a break beneath the 1.3000 degree leaves scope for a push in direction of January 20th low at 1.2962, which additionally coincides with trendline help. On the political entrance, Boris Johnson has given the inexperienced mild for Huawei to have entry to 5G networks, regardless of stress from the US to dam the corporate having entry. With that stated, market consideration has shortly shifted to the potential pressure this will trigger between UK-US relating to commerce talks. Wanting forward, Secretary of State Pompeo is scheduled to go to the UK tomorrow, whereas UK PM Johnson is because of arrive in Washington subsequent week.
CAD: Regardless of OPEC’s greatest efforts to jawbone the market and sign that they’re taking a look at potential deepening and increasing manufacturing cuts, weak spot throughout the oil complicated persists. In flip, near-term dangers stay tilted to the draw back for the Canadian Greenback, notably after the BoC’s latest dovish shift. On the topside, resistance is located at 1.3218 (61.8% Fibonacci retracement).
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of clients are net long.
of clients are net short.
Supply: DailyFX, Refinitiv
Financial Calendar (28/01/20)
WHAT’S DRIVING MARKETS TODAY
- “British Pound (GBP) Latest: Trending Lower Amid Global Risk-Off Sentiment” by Martin Essex,MSTA, Analyst and Editor
- “Dow Jones, US Market Sell-off: Buy the Dip or Sell the Rip?” by Paul Robinson, Foreign money Strategist
- “Dow Jones & DAX Forecast: Key Levels to Watch Amid Coronavirus Risks” by Justin McQueen, Market Analyst
— Written by Justin McQueen, Market Analyst
Observe Justin on Twitter @JMcQueenFX