Wednesday’s list of macroeconomic publications from 1:30 PM (GMY) – when United States starts to trade – is extremely rich. We can find there data on retail sales, the January inflation, industrial production, and above all, the second day of Janet Yellen before the Senate. Therefore USD can ve very volatile.
First, the UK labor market
However, before we focus on events in the US, we will focus on a report from the British labor market, which is planned for 10:30. Investors do not count on big changes – most of the indicators are projected to remain at the same levels, adversely will probably be change in the number applying for benefits (the so-called. Claimant count change).
On the technical side, GBP continued to weaken relative to the US dollar, as most of the major currency pairs. From the peaks of the session cable has lost about 100 pips, set a short-term support, which as yet defends against stronger falls.
In connection with pre- and afternoon macro publications current technical situation may significantly change.
Prepare for the dollars “Super Wednesday”?
Publication of data from the US will begin at 14:30 and will end really only after 18:45 when we hear speech of last member of the FOMC. The central event is the second day of speeches of Janet Yellen, who in the Congress presents a semi-annual report of the state of monetary policy. This time, before another committee so markets can once again learn something important:
Yesterday’s session on the EUR/USD ended with false breakout of 23.6% abolition of declines seen since June last year and for investors it may be a signal encouraging resale of this high liquidity currency pair.
Today, new highs sets USD/JPY due to dovish comments of Haruhiko Kuroda (President BoJ) regarding monetary policy. Interestingly presents USD/CAD, where Tuesday’s session finally drawn a spool candle:
While some technical levels for the pair is clear (as resistance from the turn of the year) or the area 1.3000 where it takes a 50% abolition of the last upward trend and the area of horizontal support, also interesting is another level – specially marked in a different color ( blue). If we erase prolapsing piece underneath support levels zone, we recognize that the lows of December 2016 are now an excellent resistance and are tested from the bottom the third day in a row.
From the fundamental side, such a scenario seems unlikely, however – especially that all investors believe in the further strengthening of the dollar. The situation is no less interesting and definitely worth watching its further development.
