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

USD Rebounds On Better Trade Numbers & NMI

Jan 8 2020, 09:05 PM (+06) | Orbex.com

The US dollar is rebounding after a patch of strong economic reports from the United States.

The ISM non-manufacturing PMI was higher at 55.0, beating estimates of 54.5. It was also higher compared to November’s print of 53.9.

The trade balance figures also narrowed as exports outstripped imports. However, given the broader middle east tensions, investor sentiment remains in check.

Eurozone Flash Inflation Within Estimates

The latest flash inflation estimates for the eurozone for January matched expectations. Headline inflation rose by 1.3%, matching forecasts, while core CPI was also up 1.3% during the period ending January 2020.

However, the euro remained unimpressed by the big change in inflation. In a separate report, eurozone retail sales rose by 1.0%, beating estimates of a 0.6% increase.

EURUSD Back to Lower Support

The declines in the common currency sent EURUSD back to the support area of 1.1131. This comes amid a failure to breakout above the resistance level. The formation of a lower high also suggests that the downside momentum is building. In the event of a breakout below 1.1131 support, we expect the euro to slip to 1.1100 level next.

EURUSD

Brexit Fears Resurface Dampening Demand for GBP

With less than 24 days to go, Brexit is back in the headlines. UK Prime minister, Boris Johnson said that he is pushing for speedy talks with the EU. Despite the January 31 deadline, both parties are expected to kickstart a transition period for the trade negotiations to continue. The pound sterling is trading weaker on the day.

GBPUSD Holds on to Support

Price action in the GBPUSD is currently weaker as the support level of 1.3100 is being tested. We expect the currency pair to stay range-bound within 1.3226 and 1.3100 in the short term. A breakout from this region is required that will confirm the direction. For the moment, the bias remains to the upside.

GBPUSD

Gold Holds Steady on Caution

Gold prices retreated on Monday, but price action remains bullish. The precious metal remains well bid as the ongoing tensions between Washington and Tehran show no signs of abating. Even some positive economic data from the US did not help stem the bullish gains in gold prices.

Will XAUUSD Breakout Higher?

This is the question to ask as gold prices approach the previous highs near 1577.68. A breakout past this level will confirm further gains to the upside. The next main target is at the 1600 level. However, if there is a correction, gold prices will be initially stalling near the current lows of 1557.76. A breakdown below this level will trigger declines down to 1534.

XAUUSD

 

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