ad
Forex Brokers Award 2021
Vote your favourite broker

USD Higher On Further Data Beat

Feb 6 2020, 08:56 PM (BDT) | Orbex.com

USD Higher on Data Beat

The US dollar continued to rally over the European morning on Thursday following another batch of solid data yesterday. The ISM non-manufacturing reading for January came in at 55.5 vs 55.1 expected. The ADP employment reading soared to 291k vs 157k expected, fuelling hopes of a strong NFP reading on Friday. The USD index trades 98.16 last, still capped by the 98.25 resistance level for now.

Euro Testing 1.10

EURUSD is under pressure again on Thursday as the USD rally continues to gain strength. EURUSD is trading back down around the 1.10 support level which as tested yesterday and is holding for now, though it looks vulnerable. Speaking in Paris yesterday, ECB head Lagarde noted the risks to the Eurozone economy and highlighted the new threat from the coronavirus.

GBP Stuck At Support

GBPUSD has been a little softer today also given the ongoing rally in USD. Tensions between the UK and EU earlier in the week as leaders set out their visions for a future trade relationship have taken some of the shine off better UK data this week. GBPUSD is anchored around the 1.2978 level.

Risk Markets Soften Somewhat

Risk assets have softened a little over early European trading today though the tone remains buoyant. News of President Trump’s acquittal has boosted US equities, seeing the SPX500 breaking out to fresh highs of 3358.63 overnight. Risk appetite has also been bolstered by emerging hopes of a coronavirus vaccine, despite the WHO stating that no cure has been found yet.

Safe Havens Pick Up

Safe havens have been a little firmer this morning, given the mild pull back in equities. Both JPY and gold have been higher against USD though are both trading lower on the week. USDJPY is now testing the bearish trend line around the 109.86 level, having broken above the 109.71 resistance yesterday. XAUUSD trades 1561.36 last, having found support at the 1554.69 level once again.

Crude Slides on Bearish EIA

Oil prices have seen a small late week recovery amidst the pickup in risk appetite seen over recent days. However, crude has run into resistance at the 52.17 level, capping the recovery for now. Yesterday, the EIA reported a further 3.4 million barrel surplus in US crude stores which is weighing on crude prices here.

Loonie Capped By Resistance

USDCAD has had a muted start to the day with price treading water around the bearish trend line from 2019 highs, capped by the 1.33 resistance level for now. Canadian trade balance data released yesterday was better than expected with the deficit narrowing to -0.4 billion from -1.2 billion prior.

Aussie Lower on Data Miss

AUDUSD has come back under pressure today also. The recovery in AUDUSD has waned a little overnight on the back of weak data with retail sales coming in below expectations at -0.5% vs -0.2% expected. AUDUSD trades .6742 last.

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
ad