Currency snapshot (major pairs)

Dollar index trading at 99.70 (+0.14%)

Strength meter (today so far) – Euro -0.18%, Franc -0.17%, Yen -0.58%, GBP +0.17%

Strength meter (since last week) – Euro +0.65%, Franc +0.71%, Yen +1.65%, GBP -0.38%

EUR/USD –

Trading at 1.078

Trend meter –

• Long term – Sell, Medium term – Sell, Short term – Sell

Support                      

• Long term – 1.01, Medium term – 1.032, Short term – 1.032

Resistance –

• Long term – 1.11, Medium term – 1.084, Short term – 1.084

Economic release today –

• Fourth quarter GDP increased by 1.8 percent.
• Unemployment rate came at 9.6 percent in December.
• Consumer price inflation rose by 1.8 percent y/y in December.

Commentary –

• The euro rose sharply after Trump’s trade advisor called it undervalued and bashes strong dollar. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01. stop loss revised to 1.13

GBP/USD –

Trading at 1.26

Trend meter –

• Long term – Sell, Medium term – Sell, Short term – range/buy

Support –

• Long term – 1.16, Medium term – 1.2, Short term – 1.2

Resistance –

• Long term – 1.32, Medium term – 1.27, Short term – 1.27

Economic release today –

• BRC shop price declined by 1.7 percent y/y in January.
• Nationwide house prices rose by 4.3 percent y/y in January.
• Markit manufacturing PMI marginally declined to 55.9 in January.

Commentary –

• The pound is still the worst performer of the week but turned positive against the dollar. We expect the pound to reach parity in the longer run.

USD/JPY –                      

Trading at 113.4

Trend meter –

• Long term – Sell, Medium term – Range/ Buy, Short term – sell

Support –

• Long term – 98, Medium term – 105, Short term – 112

Resistance –

• Long term – 121, Medium term – 120, Short term – 119

Economic release today –

• Nikkei manufacturing PMI marginally declined to 52.7 in January.

Commentary –

• The yen scaled back some of its gains as stocks rise. Active call- Sell USD/JPY targeting 110.

USD/CHF –        

Trading at 0.99

Trend meter –

• Long term – Buy, Medium term – Range/Buy, Short term – Range/sell

Support –

• Long term – 0.95, Medium term – 0.95, Short term – 0.98

Resistance –

• Long term – 1.08, Medium term – 1.037, Short term – 1.037

Economic release today –

• SVME PMI declines marginally to 54.6 in January.

Commentary –

• Franc is up in line with the euro, the pair is likely to decline towards 0.98 area in the very near term. Active call -Franc might decline to 1.08 per dollar. Target extended to 1.14