FX MARKET REPORT 03.02.2021

FX MARKET REPORT 03.02.2021

FX MARKET REPORT 03.02.2021

Daily Commentary
Daily Commentary
FX MARKET REPORT 03.02.2021
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FX MARKET REPORT 03.02.2021

GBP/USD bulls have managed to defend the critical 21-daily moving average (DMA), now at 1.3648, so far this Wednesday. The price breached the latter on Tuesday but recaptured it towards the closing. GBP buyers remain hopeful so long as the price holds above the 21-DMA. The major could likely retest Tuesday’s high at 1.3710. GBP/EUR was still showing strength halfway through the session opening, despite the latest Q4 GDP figures from the Eurozone highlighting improvement. The pair is up 0.33% on Tuesday at 1.1364 and data this week could see the pound at 1.1400 if it can stay in a bullish posture. EUR/USD has been failing to recover as Europe’s vaccination campaign lags. The euro is set to extend falls after the breakdown after breaking below the triple-bottom of 1.2050. Investors are upgrading their outlooks in response to prospects of additional spending, buying stocks and selling stocks – and the resulting increase in Treasury yields makes the dollar more attractive. The relative growth dynamics between Europe, which is weak, and the U.S., which is better, are favouring the USD at the moment, but it remains to be seen if this can be a longer-lasting theme. Analysts are predicting EUR/USD to go below 1.20. The dollar index inched up 0.02% to 91.043 and rose to a two-month high during the previous session. The USD/JPY pair inched up 0.04% to 105.02, after the USD rose to 105.17 overnight for the first time since Nov. 12. The AUD/USD pair edged up 0.11% to 0.7614 and the NZD/USD pair was up 0.38% to 0.7218. The USD/CNY pair inched up 0.07% to 6.4594, after disappointing data was released in China earlier in the day.

GBP/USD bulls have managed to defend the critical 21-daily moving average (DMA), now at 1.3648, so far this Wednesday. The price breached the latter on Tuesday but recaptured it towards the closing. GBP buyers remain hopeful so long as the price holds above the 21-DMA. The major could likely retest Tuesday’s high at 1.3710. GBP/EUR…

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