Technical Analysis

Forexlive Americas FX information wrap: GBP squeezes larger into the weekend

Foreign exchange information for NY buying and selling on January 11, 2019

Markets:

S&P 500 closes close to unchanged at 2596.26Gold rises $1.85 or Zero.14% at $1288.50WTI crude oil is buying and selling -$-Zero.88 or 1.67% at  $51.71

The day as we speak noticed the GBP squeeze larger into the weekend for a change (there may be typically weekend Brexit nervousness).  In truth, the GBP was the strongest of the foremost currencies as we speak (see charts above).  There was chatter about extending Brexit previous the March 29th date. That – and favorable technicals – helped to maneuver the GBPUSD to a excessive for the day, week and month of January (the excessive reached 1.2865).  That prime was the best stage since November 23rd, and acquired near the 50% retracement of the transfer down from September excessive at 1.2875.  If the momentum continues into the brand new week, the 100 day MA at 1.28914 isn’t that far-off. The worth has not traded above that MA since November 15th.A transfer above could be extra bullish. 

The GBPUSD rose by Zero.77% on the day, however the largest acquire for the GBP as we speak was in opposition to the EUR. The GBP gained 1.02% vs the EUR as we speak.  Technically, the pair has been buying and selling in a Zero.8921 to Zero.9086 vary over the past 5 buying and selling weeks. At present, the worth tumbled from close to the excessive of that vary, all the way in which to the ground.   The worth stalled proper close to the decrease excessive.  Leaving a possible break decrease, for the brand new week.  Bear in mind. the Zero.8926 will assist outline the subsequent bias for the pair within the new week.  

The USDCAD as we speak fell early, however then shot larger within the NA session. The bounce was helped by holding simply above the Wednesday low at 1.1380 and likewise above the 100 day MA at 1.31684. The run larger moved above the 100 hour MA at 1.32458 within the North American session (and stayed above), reaching a excessive for the day at 1.3278 in the previous couple of hours of buying and selling.  The worth had not been above the 100 hour MA since January third (5 days all the way down to the Wednesday low).  The transfer from January third excessive took the worth from about 1.3650 to the lows this week at 1.3180. The query subsequent week is “Can the 100 hour MA maintain and the corrective transfer proceed?”  

For the week, the NZD and AUD are ending because the strongest, helped by hope from the US/China conferences in Beijing. The JPY and the USD was the weakest. The USDs decline was helped by the softer tone from Fed officers and the FOMC December assembly minutes.  Though Powell reiterated on Thursday that the Fed could be knowledge dependent, he might cease himself from saying that the stability sheet could be “considerably decrease” over time.  In actuality, that’s tightening as effectively.  

The inventory market didn’t actually like that speak. Nonetheless, the shares 5 day successful streak was solely damaged as we speak and that was by the slimmest of margins for the S&P (the S&P fell -Zero.1% as we speak).  What’s considerably ironic, is the beneficial properties got here regardless of the report breaking authorities shut down.  Beneath are the % modifications of the foremost indices this week.  The excellent news maybe, is there was not a variety of financial statistics popping out to doubtlessly damage the run.   Subsequent week, the earnings calendar begins to warmth up beginning with monetary’s earnings on Monday, Tuesday, Wednesday and Thursday.  Netflix may even be an early excessive flyer releasing earnings on Thursday.   

For good order, the US CPI knowledge was launched as per expectations as we speak.  The influence on the discharge was restricted.  

Wishing you all an important weekend. 


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