The prices of major world currencies fell against the US dollar today on the background of profit taking after the rally based on the greenback’s weakening. The common currency received some negative news today as the Social Democratic party in Germany refused to form a coalition. Moreover, investors negatively reacted to the news that the ECB is unlikely to reduce the asset purchasing program until the consumer price index in the Eurozone reaches 2.0%. Tomorrow the market focus will be on the final CPI report in the Eurozone for December and industrial production data in the US.
The GBP/USD decreased today due to technical factors and the fall of consumer inflation to 3.0% in December against the 3.1% in the previous month. The appreciation of the pound is likely to lead to a decline of the CPI in the UK and that in turn will give less reasons for the Bank of England to increase interest rates.
The Australian dollar moved down slightly today despite positive statistics on new motor vehicle sales that increased by 4.5% in December compared to 0.2% in November. Today, the course of trading is likely to be impacted by the Westpac consumer sentiment release at 23:30 GMT.
The USD/JPY pair is likely to be influenced by core machinery orders in November which are due to be released at 23:50 GMT.
EUR/USD
The EUR/USD price retreated today after some consolidation. Quotes have crossed the SMA100 line on the 15-minute chart which is a negative signal for the bulls and that may force them to fix profits. The potential fall is likely to be limited by the support at 1.2070. In case of growth resuming, the next target will be 1.2400.
GBP/USD
The GBP/USD corrected after some consolidation near 1.3800. In order to continue the rising dynamics with the objective at 1.4000, the price needs to overcome resistance at 1.3850. In case of further descending correction, the price may return to the strong support at 1.3600. Volatility is likely to reduce but may stay above the average level.
AUD/USD
The AUD/USD has not reached the psychologically important 0.8000 level and rolled back slightly within the limits of the rising channel. After the end of the current correction, the quotes are likely to resume positive dynamics with the immediate target at 0.8000. In order to change the current bullish trend to bearish, the price needs to break through the lower limit of the channel and the local low of 0.7850.
General Risk Warning for FX & CFD Trading. FX & CFDs are leveraged products. Trading in FX & CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, FX & CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with FX & CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to FX or CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.
Recommended Content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.