GBP Jumps On CPI Beat

FOMC Minutes on Watch

The US dollar continues to hold just below the week’s highs, with the index trading at 99.33 last, as price is continuing to grind back towards the 100 level. The FOMC meeting minutes due later today will be the main USD focus though not much is expected from the minutes. There are some downside risks if the Fed appears highly concerned over the coronavirus, though given that the impact on the US since the meeting has been very limited, these comments might lose relevance.

Euro Still Low

EURUSD continues to trade at lows today with price edging lower, in line with the rally in USD. The continued slide has seen price breaking down below the key support of 1.0986 to trade 1.0801 last as price pushes further into 2017 levels. The ECB meeting minutes due tomorrow will be the main focus with the potential for further downside if the meetings show any dovishness among ECB members.

GBP Rallies on Inflation Beat

GBPUSD has had a volatile morning, recovering from initial losses in response to better than expected UK inflation data which came out at 1.8% vs 1.7% expected and 1.3% prior. GBPUSD trades 1.3004 last as price continues to battle around the 1.30 level.

SPX500 Recovers Following Losses

Risk assets have been a little softer so far today though the SPX500 has at least mostly recovered its losses on the week following a breakdown and retest of the 3358.86 level yesterday. Price action is likely to remain volatile this week with ongoing risks from coronavirus and manufacturing data due later in the week.

JPY Down Sharply

Safe havens have had a mixed start to the day with JPY selling off against the dollar while gold rallies. Asian stocks have been rallying. This comes after it was reported that cases of coronavirus have fallen for a second day in Hubei province, China (the epicenter of the outbreak). XAUUSD trades 1608.86 last, continuing to forge new highs. USDJPY trades 110.24 last, heading back up towards the year’s highs.

Crude Continues to Rally

Oil prices have continued to recover this week with price rallying up to 52.95 last. The ongoing recovery in risk appetite recently has helped lift sentiment for crude. Traders will now wait on the EIA inventories report due tomorrow. Any reports of a further build could stem the rally here.

Loonie Holds Above Support

USDCAD has been a little higher today, despite the pickup in crude prices, with price trading back up to 1.3237 last, following a sharp reversal lower yesterday. Price is now just above the 1.3225 support level.

AUD Recovery Continues

AUDUSD has been softer today following a reversal over the European open this morning. Overnight, Aussie wage price data came out in line with expectations at 0.5%. AUDUSD trades .6697 last as price continues to grind back towards the .6709 level.

About the Author
“John Benjamin Resident Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.” [space height="10"] At Orbex, we are dedicated to serving our clients responsibly with the latest innovations in forex tools and resources to assist you in trading. Please Director at Visit our site for more details.

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