EURUSD 09-02-2018 Intra-day analysis.

BoE signals faster pace of rate hikes. GBP gives up gains

Posted on
EURUSD 09-02-2018

Daily Forex Market Preview, 09/02/2018

The Bank of England’s monetary policy meeting yesterday surprised the markets with hawkish tone from the central. Officials voted to leave the interest rates unchanged at 0.50% at yesterday’s meeting by a unanimous vote. However, the statement showed that the central bank expects faster pace of rate hikes given the uptick in the global growth.

Despite the hawkish tone from the BoE, the fact that the central bank acknowledged that the UK wasn’t fully able to take advantage of the growth phase and the uncertainty from Brexit remained some key factors that offset the hawkish tone.

The equity markets resumed the selloff with the Dow Jones falling over 1000 points on the day on Thursday. Major U.S. stock indexes were down by at least 3%. The selloff extended to the Asian session with the Nikkei index down 2.7% while the Shanghai Index was seen losing 4.11% at the time of writing.

Earlier today, China’s inflation data confirmed that consumer prices rose at a slower pace of 1.5% as expected. This is a weaker print compared to December’s inflation rate of 1.8%. Producer prices were also weaker, rising just 4.3% missing estimates and slower than December’s increase of 4.9%.

Looking ahead, the economic calendar will see Canada’s unemployment details. Unemployment rate is expected to edge slightly higher to 5.8% while the economy is forecast to add 10.3k jobs during January.

 

EURUSD 09-02-2018 Intra-day analysis

EURUSD (1.2254): The EURUSD extended declines as prices touched a fresh monthly low at 1.2211 before pulling back slightly. The daily session in the EURUSD ended with a spinning bottom candlestick pattern that could suggest a near term recovery in the declines. On the 4-hour time frame, EURUSD is seen consolidating near 1.2237 retesting the January 23 lows. We expect to see a pullback in prices that could see EURUSD retesting the broken support level at 1.2363 – 1.2333. If resistance is established here, then EURUSD could extend declines down to 1.2090 – 1.2070 level in the medium term. The bias shifts if price manages to breakout above 1.2363, resistance high.

(Visited 18 times, 1 visits today)

John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.

Follow Me:
Twitter

Disclaimer:

This material is intended for marketing/information purposes only and does not contain, and should not be construed as containing; an attempt of solicitation for any transactions in financial instruments and does not constitute investment advice or research. Past performance is not a guarantee of or prediction of future performance. The Trade Ideas are provided independently by an external third party company, PIA First Limited, which is authorised and regulated by the Financial Conduct Authority FRN 787261 to provide regulated products and services including Investment Advice. Registered in England & Wales, company number 07428345. Registered Office: Kemp House, 152 City Road, London EC1V 2NX. VAT number 153 646014. Copyright © 2018.

ORBEX does not take into account your personal investment objectives or financial situation, Readers should consider the possibility that they may incur losses. ORBEX makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any employee of ORBEX, a third party or otherwise. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of ORBEX. This communication must not be reproduced or further distributed without the prior permission of ORBEX.

This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change.

START TRADING

or practice on DEMO ACCOUNT

Trading CFDs Involves high risk of loss

John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.

© Orbex