FX News Today
- The global stock market recovery continued during the Asian session.
- News came out at the last minute that a “legally binding” agreement has been reached between the EU and the UK, giving May an assurance that the dreaded Irish border backstop doesn’t become permanent underpinned.
- The pound strengthened, as well as stock markets across Asia after a positive close on Wall Street, where robust retail sales had helped to bolster confidence.
- The latter also helped tech stocks to break the losing streak amid news that Nvidia Corp. agreed to buy chipmaker Mellanox Technologies Ltd.
- Topix and Nikkei rose 1.52% and 1.79% respectively overnight. The Hang Seng is up 1.2% and CSI 300 and Shanghai Comp rose 0.48% and 0.76% so far, with the Shenzen Comp up 0.88%.
- The ASX underperformed and closed with a loss of -0.09%, as Aussie loans data again came out negative.
- US futures are broadly higher, while the front end WTI future saw a high of USD 57.14 before falling back to now USD 56.91 per barrel.
Charts of the Day
- EURUSD has continued its rise after the positive Brexit news, trading around the 1.1256 Resistance level, far from both the next 1.1224 Support and 1.13 Resistance.
- GBPUSD gained on the positive Brexit developments, breaking through the 1.32 Resistance but the MACD suggests that this may be running out of steam.
- XAUUSD continues to fluctuate around the 1295 mark, with the MACD and Stochastics indicators pointing to the downside as price it hits its 200HMA.
- USDJPY continues to move upwards, with immediate Resistance at the 200HMA level at 111.54, while Stochastics and the MACD point downwards.
Main Macro Events Today
- Industrial and Manufacturing Production (GBP, GMT 09:30) – Industrial and Manufacturing Production are expected to have remained flat registering 0.0% m/m growth in January, compared to a 0.5% and 0.7% declines in December.
- Consumer Price Inflation (USD, 12:30) – US CPI is expected to stand at the same level as in January, both for the overall and the core index, at 2.2% and 1.6% respectively.
- Brexit Vote (EUR, USD, N/A) – The UK Parliament will vote on whether it will accept May’s amended deal, in light of today’s agreement on the backstop.
Support and Resistance
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Dr Nektarios Michail
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