FX MARKET REPORT 10.02.2021

FX MARKET REPORT 10.02.2021

FX MARKET REPORT 10.02.2021

Daily Commentary
FX MARKET REPORT 10.02.2021
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FX MARKET REPORT 10.02.2021

The GBP/USD pair has moved north of 1.3800. The breach of the 1.3800 resistance implies that the GBPU/SD may extend its run all the way to 1.4000, although the immediate next target is at 1.3880. Strong vaccination drive, and being past the peak of the most recent pandemic surge will be supportive of the cable pair. The risk sentiment remains buoyed by the US stimulus hopes, upbeat earnings reports and ample liquidity in the markets, which is expected to ramp up the global economic recovery from the coronavirus pandemic induced downturn. The further upside in the cable also remains at the mercy of the US CPI report, the BOE Governor Andrew Bailey’s speech and the appearance by the Fed Chief Jerome Powell, all of which are lined up later in the NA session. The EUR/USD pair has moved back above 1.21. The broad USD is now likely to be under further pressure amid risk-on. Market may now shift to focus on EUR-positives like the narrowing BTP-Bund spread, and target 1.2150 for the EUR/USD. The dollar index was down 0.1% at 90.343, after earlier falling as low as 90.332 for the first time this month. USD/JPY traded down 0.1% at 104.52, while the risk-sensitive AUD/USD rose 0.1% to 0.7749.

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The GBP/USD pair has moved north of 1.3800. The breach of the 1.3800 resistance implies that the GBPU/SD may extend its run all the way to 1.4000, although the immediate next target is at 1.3880. Strong vaccination drive, and being past the peak of the most recent pandemic surge will be supportive of the cable…

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