ad
Forex Brokers Award 2020
Vote your favourite broker
Trade 100 Bonus - the best offer on Forex market

GBP Crashes Despite Better UK Data

Jan 24 2020, 08:55 PM (+06) | Orbex.com

USD Breaks Resistance

The US dollar has been firmer over the last 24 hours with the USD index breaking above the 97.42 level yesterday. For now, momentum has stalled and price is sitting just above this level. The absence of any key US data this week means that moves have been light. However, USD sentiment is generally positive and further upside looks likely.

Euro Lower Following ECB

EURUSD has been firmly lower today. The ECB launched its strategy review at yesterday’s policy meeting though warned markets that while the review is underway, its monetary policy approach will not be on auto-pilot. EURUSD has broken through the 1.1072 level now and is trading 1.1049 last.

GBP Down Despite Better Data

GBPUSD reversed sharply from initial highs on the session above the 1.3150 level to trade 1.3119 last. The UK manufacturing PMI released today was seen rising to a nine-month high, though still below the 50-level at 49.8, the reaction in GBP has been firmly bearish.

Risk Assets Recovering

Risk assets have had a tricky week. The outbreak of the Wuhan virus in China weighed on equities initially though late in the week we saw a shift in sentiment with the SPX500 rallying off the week’s lows to trade back up towards recent highs.

JPY & Gold Lower

Safe havens have been lower today with both the Japanese yen and gold trading lower against the USD in light of the rally in both USD and equities. XAUUSD trades 1559.69 last, sitting atop the 1554.69 level into the end of the week. USDJPY is trading back beneath the 109.71 level today at 109.68 last.

EIA Reports Inventories Drawdown

Oil prices have been lower again today, ending the week firmly in the red. While crude saw some mild recovery yesterday on news of an EIA inventories drawdown, the move has been shallow compared to the declines suffered over the week on fears that the Wuhan virus will negatively impact crude demand. Crude trades 55.64 last.

BOC Sends Dovish Signals

USDCAD has been lower today. Despite the weakness in crude and the strength in USD over the week, the loonie has fallen back below the 1.3145 level to trade 1.3125 on Friday. At the BOC meeting this week the bank struck a more dovish tone, citing weakness in the domestic and global economy and the potential need for easing in the near future.

Aussies Rallies On Risk Recovery

AUDUSD has been a little higher today, benefitting from the recovery in risk appetite. Aussie employment data this week was better than expected with the unemployment rate falling to 5.1%. However, the market is still anticipating an RBA rate cut in response to bushfires which have been raging over the last month. AUDUSD trades .6853 last, sitting back above the .6850 level for now.

Orbex.com

At Orbex, the client is at the heart of everything we do and everything we do is designed to guarantee your satisfaction. Here’s how Forex Trading with Orbex will enhance your trading experience: Best-in-class customer service, including live chat and free webcall One-hour response time for sales and support requests Multiple asset trading and ECN accounts on MT4 0.9 pip fixed spread at ZERO commission Up to 1:500 leverage