Weak data put US dollar under pressure

Information is not investment advice

Ichimoku Kinko Hyo

USD/JPY: The pair has just surpassed the Tenkan-sen level. Further increase of the market will lead USD/JPY towards the Kijun-sen level. A failed attempt to move higher will push the pair below the Tenkan-sen, with further bearish implications.

Fibonacci Levels

XAU/USD: Gold is heading towards the previous top and continues to be a bullish bet.

European Market View

The risk of a second wave of coronavirus is more likely to put pressure on rates. Risky assets are supported by fiscal and monetary stimulus.

The US dollar will most likely stay under pressure provided the weak data as well as the political uncertainty (yesterday’s comments from the President regarding postponing the US presidential elections).

GDP data for France, Spain, Italy and Canada are about to be released today. A significant slowdown is expected, as we saw in Germany and US yesterday.

The preliminary EU inflation data for July are expected as well to decline. The US PCE data (for July) are expected to rebound modestly.

Moody’s may update its view on the German sovereign rating. However, we do not expect to see a change to either the outlook or the rating.

European Key Point

The risk of a COVID-19 second wave
Weak data put US dollar under pressure
GDP data for France, Spain, Italy and Canada
The preliminary EU inflation data for July
Moody’s may update its view on the German sovereign rating

[email protected]

Similar

19.01.2021 17:55 EUR/USD bulls target again 1.24 area

U.S. stocks are set to reopen higher after the Martin Luther King Day holiday on Monday, with Yellen’s remarks a welcome reminder of the momentum behind economic stimulus measures.

19.01.2021 11:52 Dollar retreats from highs ahead of Yellen's testimony

Asian equity markets mostly rallied with risk appetite spurred as trade picked up from Monday’s holiday.

19.01.2021 10:14 USD/JPY: bouncing downwards

Look at the H1 chart for USD/JPY - is it not a perfect example of a reversal in the resistance zone?

Share with friends:

Choose your payment system

Phone number

Select the best time for us to call you.

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.