FX MARKET REPORT 08.02.2021

FX MARKET REPORT 08.02.2021

FX MARKET REPORT 08.02.2021

Daily Commentary
FX MARKET REPORT 08.02.2021
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FX MARKET REPORT 08.02.2021

GBP/USD has been retreating amid hopes for a large US stimulus package but Britain’s virus advantage may send sterling higher. While the case for robust stimulus remains dollar positive, it is unlikely to pass immediately, allowing for the dollar to take a breather. The UK’s vaccination drive is gaining pace, with over 17% of the population already having received one short, nearly double America’s 9.1%. Some resistance awaits at the daily high of 1.3740, closely followed by the 2021 peak of 1.3752. Further above, 1.3810 and 1.40 are eyed. Support is seen at 1.3680, where the 50 SMA hits the price. The next cushion is 1.3615, which was a low point last week. The next level to watch is 1.3565, the February trough. EUR/USD seems to have met decent contention in the YTD lows around 1.1950 so far. In spite of the recent correction lower, the outlook for the pair remains constructive in the longer run and is always supported by prospects of a strong recovery in the region (and abroad), which is in turn underpinned by extra fiscal stimulus by the Fed and the ECB along with hopes of an acceleration in the vaccine rollout. The dollar index was up 0.1% at 91.075, after falling 0.6% on Friday. USD/JPY up 0.1% at 105.50, while AUD/USD fell 0.1% to 0.7676.

GBP/USD has been retreating amid hopes for a large US stimulus package but Britain’s virus advantage may send sterling higher. While the case for robust stimulus remains dollar positive, it is unlikely to pass immediately, allowing for the dollar to take a breather. The UK’s vaccination drive is gaining pace, with over 17% of the…

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