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
  • 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
  • USD broadly stronger during early trade $USD $EUR $JPY $CHF $CAD $AUD https://t.co/DlvOYzrVVU
USD Advances as Risk Appetite Dwindles Ahead of FOMC- Kiwi Heavy

USD Advances as Risk Appetite Dwindles Ahead of FOMC- Kiwi Heavy

Michael Boutros, Strategist

Daily Winners and Losers

USD_Advances_as_Risk_Appetite_Dwindles_Ahead_of_FOMC-_Kiwi_Heavy_body_Picture_2.png, USD Advances as Risk Appetite Dwindles Ahead of FOMC- Kiwi HeavyUSD_Advances_as_Risk_Appetite_Dwindles_Ahead_of_FOMC-_Kiwi_Heavy_body_Picture_3.png, USD Advances as Risk Appetite Dwindles Ahead of FOMC- Kiwi HeavyUSD_Advances_as_Risk_Appetite_Dwindles_Ahead_of_FOMC-_Kiwi_Heavy_body_Picture_4.png, USD Advances as Risk Appetite Dwindles Ahead of FOMC- Kiwi Heavy

The British pound is the top performer against a stronger dollar for the second consecutive day with a decline of just 0.30% in early US trade. The greenback has remained well supported ahead of the FOMC interest rate announcement later today, with the reserve currency advancing against all its major counterparts. Minutes from the January Bank of England monetary policy meeting have helped support the sterling as the MPC struck a less dovish tone on future policy. Although the central bank cited that further asset purchases were ‘likely,’ members noted that the risk for inflation is more ‘finely balanced’, easing concerns that the BoE will undershoot the 2% inflation target. The remarks offset a weaker than expected print on the 4Q GDP which showed a contraction of 0.2% q/q, missing calls for a contraction of 0.1% q/q.

The GBP/USD broke below channel support dating back to January 16thin overnight trade before rebounding off soft support at 1.5540. Interim support now rests with the 23.6% Fibonacci extension taken from the December 21st and January 3rd crests at 1.5570 with subsequent support targets seen at 1.5540, the 38.2% extension at 1.5510 and former trendline resistance, now support at 1.5480. Topside resistance is eyed at the 1.56-figure backed by 1.5620 and 1.5645. The pound is likely to remain under pressure over the next few hours with the FOMC interest rate decision on tap. Should the accompanying Fed statement show no mentions of further easing, look for the dollar’s advance to accelerate with the pair eyeing subsequent support targets.

Key Levels/Indicators

Level/Indicator

Level

200-Day SMA

1.5972

100-Day SMA

1.5666

50-Day SMA

1.5549

2011 GBP High

1.6745

USD_Advances_as_Risk_Appetite_Dwindles_Ahead_of_FOMC-_Kiwi_Heavy_body_Picture_5.png, USD Advances as Risk Appetite Dwindles Ahead of FOMC- Kiwi HeavyUSD_Advances_as_Risk_Appetite_Dwindles_Ahead_of_FOMC-_Kiwi_Heavy_body_Picture_6.png, USD Advances as Risk Appetite Dwindles Ahead of FOMC- Kiwi Heavy

The New Zealand dollar is the weakest performer against the greenback with a decline of 0.85% on the session. A move into risk aversion in European trade carried over into the US session with higher yielding assets coming under pressure as the dollar pressed higher. Continued concerns over stalling Greek PSI negotiations have weighed on broader market sentiment with the ECB citing today that it would not accept haircuts on Greek debt. The kiwi remains at risk ahead of the Reserve Bank of New Zealand interest rate decision later this evening with the central bank widely expected to hold rates at 2.50%.

The NZD/USD broke back below the 123.6% Fibonacci extension taken from the December 29th and January 8th troughs at 0.8087 in overnight trade before settling just below the 0.8060 level. Interim resistance now stands here with a breach eyeing subsequent ceilings back at 0.8087, the 0.81-figure, and the 136.8% extension at 0.8120. Support rest lower at the 100% extension at 0.8030 backed by the 0.80-handle and 0.7980. Look for the pair to follow broader market sentiment with the greenback’s rally likely to limit topside moves in the interim. Event risk mounts later in the day for the kiwi with the RBNZ rate decision and the December business performance of manufacturing index.

Key Levels/Indicators

Level/Indicator

Level

200-Day SMA

0.8040

100-Day SMA

0.7857

50-Day SMA

0.7755

2011 NZD High

0.8841

Upcoming Events

Date

GMT

Release

Expected

Previous

1/25

20:00

Reserve Bank of New Zealand Interest Rate Decision

2.50%

2.50%

1/25

21:30

Business NZ Performance of Manufacturing Index (DEC)

-

45.7

1/25

23:00

RBNZ Governor Alan Bollard Speaks on New Zealand Economy

-

-

---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