News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
More View more
Real Time News
  • GameStop is down around 260 now afterhours - official close was 347.51
  • RT @tracyalloway: Aaaand r/wallstreetbets just went private https://t.co/wAudxFdqfl
  • Not only was today the worst day for the #SP500 in almost 3 months (-2.57%) But also, the #VIX market 'fear-gauge' surged 61.64% That was the largest single-day surge since February 2018 which means.... Yes, worse than any single instance during last year's Covid crash https://t.co/u2laobD913
  • 🇯🇵 Retail Sales YoY (DEC) Actual: -0.3% Expected: -0.4% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2021-01-27
  • 🇯🇵 Foreign Bond Investment (23/JAN) Actual: ¥752.6B Previous: ¥272.4B https://www.dailyfx.com/economic-calendar#2021-01-27
  • Heads Up:🇨🇭 World Economic Forum Annual Meeting due at 00:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-28
  • US equities tumbled overnight. All 11 S&P 500 sectors declined, with only 15% of the index’s constituents closing in the green on Wed. Communication services (-3.82%), consumer discretionary (-3.13%) and healthcare (-3.05%) were among the hardest hit. https://t.co/wGR3JBguZg
  • Heads Up:🇯🇵 Retail Sales YoY (DEC) due at 23:50 GMT (15min) Expected: -0.4% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2021-01-27
  • Heads Up:🇯🇵 Foreign Bond Investment (23/JAN) due at 23:50 GMT (15min) Previous: ¥272.4B https://www.dailyfx.com/economic-calendar#2021-01-27
  • Will the Swiss Franc find reprieve after recent losses against the Canadian and New Zealand Dollars as NZD/CHF and CAD/CHF uptrends face key chart barriers? Find out from @FxWestwater here:https://t.co/c89gcaNhTt https://t.co/aWbG3XGCXt
British Pound Advances Despite USD Counteroffensive- Yen Plummets

British Pound Advances Despite USD Counteroffensive- Yen Plummets

Michael Boutros, Strategist

Daily Winners and Losers

British_Pound_Advances_Despite_USD_Counteroffensive-_Yen_Plummets_body_Picture_2.png, British Pound Advances Despite USD Counteroffensive- Yen PlummetsBritish_Pound_Advances_Despite_USD_Counteroffensive-_Yen_Plummets_body_Picture_3.png, British Pound Advances Despite USD Counteroffensive- Yen PlummetsBritish_Pound_Advances_Despite_USD_Counteroffensive-_Yen_Plummets_body_Picture_4.png, British Pound Advances Despite USD Counteroffensive- Yen Plummets

The British pound is the top performing currency against a stronger greenback in early US trade with an advance of 0.24%. The dollar has mounted a counter-offensive after yesterday’s broad based sell-off with the reserve currency advancing against all its major counterparts save the sterling. The pound was the weakest performer yesterday and continues to decouple from moves in its European counterparts with positive data out of the UK continuing to support the sterling in the interim. December public sector net borrowing came in at £10.8B, besting calls for a print of £12.1B, suggesting that the newly implemented austerity measures may be taking effect with the figure coming off a previous read of £15.1B. The data helped temporarily ease concerns regarding the UK economy as high unemployment and low growth has fueled speculation that the Bank of England will need to introduce further easing measures by way of expanding asset purchases past the £275 billion threshold already committed by the MPC.

The GBP/USD has continued to trade within the confines of an ascending channel formation dating back to January 16thwith the 1.56-figure capping advances over the past 24-hours. Our medium-term bias remains weighted to the downside on the pound noting interim support at the 23.6% Fibonacci extension taken from the December 21st and January 3rd crests at 1.5570. Subsequent floors are seen lower at 1.5540, the 38.2% extension at 1.5510, and 1.5480. A break above the 1.56-handle eyes topside targets at 1.5620, 1.5650, and the January 3rd high at 1.5670. Traders will be eyeing key UK economic data with 4Q GDP, the BoE minutes, and CBI trends orders on tap for tomorrow. The bank of England minutes will also be closely eyed as speculation for further easing continues to take root.

Key Levels/Indicators

Level/Indicator

Level

200-Day SMA

1.5976

100-Day SMA

1.5670

50-Day SMA

1.5551

2011 GBP High

1.6745

Upcoming Events

Date

GMT

Release

Expected

Previous

1/25

9:30

Gross Domestic Product (QoQ) (4Q A)

-0.1%

0.6%

1/25

9:30

Gross Domestic Product (YoY) (4Q A)

0.8%

0.5%

1/25

9:30

Bank of England Meeting Minutes

-

-

1/25

9:30

BBA Loans for House Purchase (DEC)

35000

34738

1/25

9:30

Index of Services (MoM) (NOV)

0.4%

-0.7%

1/25

9:30

Index of Services (3Mo3M) (NOV)

-0.1%

0.2%

1/25

11:00

CBI Trends Total Orders (JAN)

-23

-23

1/25

11:00

CBI Trends Selling Prices (JAN)

3

7

1/25

11:00

CBI Business Optimism (JAN)

-

-30

British_Pound_Advances_Despite_USD_Counteroffensive-_Yen_Plummets_body_Picture_5.png, British Pound Advances Despite USD Counteroffensive- Yen PlummetsBritish_Pound_Advances_Despite_USD_Counteroffensive-_Yen_Plummets_body_Picture_6.png, British Pound Advances Despite USD Counteroffensive- Yen Plummets

The Japanese yen is the weakest performing currency with a decline of nearly 0.90% against the dollar. The Bank of Japan held interest rates at 0.10% as expected with the central bank making no mention of further easing to monetary policy. The BoJ also cut Japan’s growth forecast for both 2011 and 2012 citing concerns over appreciation in the yen and a slowdown in overseas economies. For fiscal 2012, the central bank expects GDP growth of just 2%, down from the previous 2.2% projections. Accordingly the yen has come under pressure across the board with the low yielder falling against all its major counterparts.

After holding an incredibly tight range for the entire month, the USD/JPY pair finally broke above the 38.2% Fibonacci extension taken from the November 18th and January 4th troughs at 77.22 in early European trade. The pair ran out of steam just ahead of the 76.4% extension at 77.85, where interim resistance now stands. A breach here eyes subsequent topside targets at the 78-figure and 78.25. Interim support now rests at the 61.8% extension at 77.60 backed by 77.40 and the 38.2% extension at 77.22. Overnight traders will be eyeing data out of Japan with the December merchandise trade balance figures on tap. Trade deficits are expected to ease with imports called lower on a year on year basis.

Key Levels/Indicators

Level/Indicator

Level

200-Day SMA

78.39

100-Day SMA

77.16

50-Day SMA

77.36

2011 JPY High

75.50

Upcoming Events

Date

GMT

Release

Expected

Previous

1/24

23:50

Adjusted Merchandise Trade Balance (Yen) (DEC)

-376.5B

-537.9B

1/24

23:50

Merchandise Trade Balance Total (Yen) (DEC)

-154.9B

-684.7B

1/24

23:50

Merchandise Trade Exports (YoY) (DEC)

-7.4

-4.5

1/24

23:50

Merchandise Trade Imports (YoY) (DEC)

8.0

11.4

---Written by Michael Boutros, Currency Strategist with DailyFX.com

To contact Michael email mboutros@dailyfx.com or follow him on Twitter @MBForex.

To be added to Michael’s email distribution list, send an email with subject line “Distribution List” to mboutros@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES