[ad_1]
- Carney, of the BoE, says the political response to a tough Brexit could go both ways.
- Strong PMI data from the United States eases concerns about an economic slowdown.
- The US dollar index exceeds 96.50 during the NA session.
After crossing the 1.30 mark for the first time since mid-November on Wednesday, GBP / USD continued to rise up to 1.31 on Thursday, but lost momentum as the generalized strength of the USD in the second half of the day weighed. the pair. However, the pair found support before 1.30 and traced almost all of its daily losses. At the time of writing these lines, the GBP / USD was down just 9 pips the day at 1.3058.
Current data from the United States indicate that manufacturing and services activity grew at a faster pace than expected in January. In addition, weekly jobless claims fell below 200,000 for the first time in nearly 50 years. Commenting on the data, White House economic adviser Kudlow said data on jobless claims suggested the January jobs report could be "up sharply". Backed by the data, the US dollar index hit its highest level in three weeks at 96.68 and was last seen up 0.45% on the day at 96.55.
Despite the impressive performance of the US dollar, the sharp fall in the EUR / GBP pair following ECB President Draghi's cautious remarks on the economic outlook has allowed the pound sterling to be resilient. EUR / GBP has now hit its lowest level since April at 0.8650.
Earlier in the day, BoE Governor Carney reiterated that the political response to a Brexit without agreement could go both ways. "The improvement in the financial situation of households, in relation to the financial crisis, is a factor of confidence so that the slowdown does not turn into stagnation," Carney said on the sidelines of the World Economic Forum in Davos.
Technical Outlook via Valerie Bednarik, FXStreet Chief Analyst
The pair traded at 1.3011 with a rebound from the capped level by selling interest around 1.3060, which now constitutes immediate resistance. The uptrend has eased, but the risk remains biased upwards according to the 4-hour chart, as the pair is trading well above a strongly bullish SMA, which broadens its distance with the 200 EMA, while technical indicators correct levels of overbought, remaining in positive territory. Below the daily minimum mentioned, the chances of a downward extension are greater, with a likely downside target for this Friday at 1.2925.
Support levels: 1.3010 1.2970 1.2925
Resistance levels: 1.3030 1.3085 1.3130
Source link
