FX MARKET REPORT 18.01.2021

FX MARKET REPORT 18.01.2021

FX MARKET REPORT 18.01.2021

Daily Commentary
Daily Commentary
FX MARKET REPORT 18.01.2021
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FX MARKET REPORT 18.01.2021

GBP/USD is below 1.36. While bears push sterling to oversold conditions,  Britain’s rapid vaccination campaign and optimism about the Biden era  may prompt a bounce. Support below 1.35 awaits at 1.3455, the 2020  trough, followed by 1.33, a stepping stone on the way up in late  December. Some resistance is at 1.3545, which was a cushion early in the  year. It is followed by 1.3610, a support line from last week.     EUR/USD loses further momentum and drops to 1.2060. The better tone in  the dollar keeps weighing on the pair. ECB’s Lagarde participates in the  EuroGroup meeting.  The upside momentum in EUR/USD run out of steam in  the 1.2350 area earlier in the month. The subsequent corrective downside  breached already the 1.2100 mark and appears to still have further legs  to go. Despite the corrective downside, the outlook for EUR/USD remains  constructive and appears 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. In addition, real interest rates  continue to favour the euro area vs. the US, which is also another  factor supporting the EUR along with the huge long positioning in the  speculative community. The dollar index steadied after touching a  one-month high and last traded at 90.857, its highest level since Dec.  21.

GBP/USD is below 1.36. While bears push sterling to oversold conditions,  Britain’s rapid vaccination campaign and optimism about the Biden era  may prompt a bounce. Support below 1.35 awaits at 1.3455, the 2020  trough, followed by 1.33, a stepping stone on the way up in late  December. Some resistance is at 1.3545, which was a…

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