AUD/USD Selling Eases, GBP/USD Drops on Carney, CAD Eyes BoC’s Poloz - US Market Open

2020-01-09 14:05:00

MARKET DEVELOPMENT –AUD/USD Selling Eases, GBP/USD Drops on Carney, CAD Eyes BoC's Poloz

GBP: Sterling is among the laggards in the G10 complex following dovish comments by BoE Governor Carney, which in turn has seen a modest repricing of near-term easing bets with the risk of a January cut rising to 16% from 5%.However, with little in the way of notable new information, GBP/USD has pulled off recent lows. Keep in mind that January 30th will be Carney’s final monetary policy meeting. (full analysis)

GBP/USD Bearish

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Change in	Longs	Shorts	OI
Daily	3%	-7%	-3%
Weekly	4%	-10%	-5%

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AUD: Selling in the Australian Dollar has abated as the currency finds a lift from cross-related buying in AUD/NZD. Although, eyes will be on the retail sales overnight, which are expected to rise 0.4% from a prior of 0.0%. Of note, risks are tilted to the upside for the November retail sales report, given seasonal effects stemming from black Friday.

CAD: Eyes will be on BoC Governor Poloz at 19:00GMT (14:00ET) who is scheduled to take part in a fireside chat. There is a risk that the Governor could provide a more cautious outlook from a domestic standpoint following the recent economic growth data, where Canada showed a contraction in growth for the first time in 8 months at -0.1%. Elsewhere, focus will also be on the Canadian jobs report on Jan 10th and Business Outlook Survey on Jan 13th. USD/CAD has continued to steady reversal since bottoming out at 1.2950, thus a move to 1.3100 is on the cards, particularly on a cautious Poloz.