Mid Day Market Update – I -14-Jan
Intraday bias in EURUSD is bullish today. Euro Group meeting is running in brassels whole day on issues like Greece: state of play, Cyprus: state of play , International Monetary Fund(IMF) Article IV consultation with the euro area , European Semester and Thematic discussion on growth and jobs: national insolvency frameworks. Earlier today German WPI m/m released which shows the index of selling prices in wholesale trade was down 1.2% on an annual average in 2015 from the preceding year, as reported by the Federal Statistical Office (Destatis).
Right now EURUSD is testing the resistance level 1.0942. A breakout of this level may fuel the current bullish move. Rejection from the resistance will widen the consolidation mode.
Buy EURUSD @1.0950 if it breaks out above 1.0942 and retest it as support. Stop loss @1.0930 and Take Profit @1.0980.
The BOE’s Monetary Policy Committee (MPC) sets monetary policy in order to meet the 2% inflation target and in a way that helps to sustain growth and employment. At its meeting ending on 13 January 2016, the MPC voted by a majority of 8-1 to maintain Bank Rate at 0.5%. The Committee voted unanimously to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion, and so to re-invest the £8.4 billion of cash flows associated with the redemption of the January 2016 gilt held in the Asset Purchase Facility. The decision of holding Bank rate same may hurt the buyers of Sterling .The dovish tone is tempered by the impact of low oil prices on spending and recent Sterling weakness on inflation.
The intraday bias in GBPUSD is bearish. Right now it is in the confluence zone of top of down slope channel and support zone. A breakdown below 1.4350 may gear hitting the 6 years low 1.4228 level.
Sell below 1.4340 after breaking 1.4352 level and retesting it as resistance. Stop Loss @1.4385 and Take Profit @ 1.4260.
USDJPY is in consolidation mode right now ,so intraday bias is neutral in USDJPY. A breakdown below 117.18 may spur the Yen’s bull run against USD.
Sell below 117.10 with Stop Loss @117.40 and Take Profit @116.80.