Posts by CSFXNews

Daily FX Analysis - GBP/USD drops, EUR/USD navigates, NZD/USD strengthens, USD/CHF soars. Introduction GBP/USD faces pressure, dropping towards 1.2650 after disappointing UK Retail Sales data. The pair grapples with a resurgent US Dollar and cautious market sentiment, awaiting crucial US data and Federal Reserve speeches. Meanwhile, EUR/USD remains stable below 1.0900, monitoring ECB President Lagarde’s speech. NZD/USD gains strength above 0.6100, while USD/CHF rises to nearly 0.8680 on SNB Chairman’s concerns about the appreciating Swiss Franc. Market dynamics continue to evolve as traders brace for upcoming economic indicators and central bank communications. Markets In Focus Today – GBP/USD GBP/USD Drops Toward 1.2650 After UK Retail Sales Data. GBP/USD is dropping toward 1.2650, under intense selling pressure after the UK Retail Sales dropped more than expected in December. The pair is also feeling the heat from a pause in the US Dollar decline, as sentiment remains tepid ahead of top-tier US data, Fedspeak. GBP/USD reversed its direction after dipping below 1.2700 and closed in positive territory above 1.2750 on Thursday. The positive shift seen in risk mood supports the pair on Friday as markets await Producer Price Index (PPI) data from the US. Inflation figures provided a boost to the US Dollar (USD) with the initial reaction but they seemingly failed to persuade markets that the Federal Reserve (Fed) could refrain from lowering the policy rate in March. Technical Overview With Chart : Moving Averages : Exponential : MA 10 : 1.27 | Negative Crossover | Bearish MA 20 : 1.27 | Negative Crossover | Bearish MA 50 : 1.26 | Positive Crossover | Bullish Simple : MA 10 : 1.27 | Negative Crossover | Bearish MA 20 : 1.27 | Negative Crossover | Bearish MA 50 : 1.26 | Positive Crossover | Bullish RSI (Relative Strength Index) : 49.84 | Neutral Zone | Neutral Stochastic Oscillator : 47.09 | Neutral Zone | Neutral Resistance And Support Levels : R1 : 1.28 R2 : 1.29 S1 : 1.26 S2 : 1.25 Overall Sentiment : Neutral Market Direction : Buy Trade Suggestion : Limit Buy : 1.2655 | Take Profit : 1.2754 | Stop Loss : 1.2595 EUR/USD EUR/USD Holds Steady Below 1.0900 Ahead Of Lagarde Speech. EUR/USD is holding steady below 1.0900 in European trading on Friday. A modest uptick in the US Dollar alongside the US Treasury bond yields, amid a cautious mood, is weighing on the pair. ECB Lagarde’s speech and US data awaited. The EUR/USD pair oscillates in a narrow range through the early European session on Friday and remains within the striking distance of over a one-month trough touched on Wednesday. Furthermore, ECB President Christine Lagarde declined to push back against bets for a cumulative of over 150 basis points (bps) rate cuts this year. Lagarde, however, cautioned against premature optimism in markets amid a rise in the Eurozone inflation, to the 2.9% YoY rate in December. Technical Overview With Chart : Moving Averages : Exponential : MA 10 : 1.09 | Negative Crossover | Bearish MA 20 : 1.09 | Negative Crossover | Bearish MA 50 : 1.09 | Negative Crossover | Bearish Simple : MA 10 : 1.09 | Negative Crossover | Bearish MA 20 : 1.10 | Negative Crossover | Bearish MA 50 : 1.09 | Negative Crossover | Bearish RSI (Relative Strength Index) : 42.65 | Neutral Zone | Neutral Stochastic Oscillator : 15.01 | Buy Zone | Positive Resistance And Support Levels : R1 : 1.11 R2 : 1.12 S1 : 1.08 S2 : 1.07 Overall Sentiment : Neutral Market Direction : Buy Trade Suggestion : Limit Buy : 1.0849 | Take Profit: 1.0928 | Stop Loss : 1.0799 NZD/USD READ FULL REPORT - CAPITAL STREET FX