[B]Daily economic digest from Forex.ee[/B][I]Stay informed of the key economic events[/I]
[B]Thursday, February 16th [/B]
The [B]EUR/USD[/B] bounced off its 5-week lows yesterday, posted at 1.0521 spot, and now is extending its recovery above the level 1.06, despite stronger-than-expected set of macro data from the US economy. Greenback’s bulls lost its upside momentum yesterday, as Fed Chair Janet Yellen provided the market with cautious comments during her second testimony, stressing that economic indicators are somewhat disappointing lately, thereby forcing the US dollar to retreat vs. basket of its main competitors. However, currently the main currency pair is trading around 1.0610 level, awaiting for ECB monetary policy meeting minutes for the next leg of directional move, while data from the US housing market and Philly Fed manufacturing index will also be monitored for fresh trading opportunities in NA session.
The [B]AUD/USD[/B] pair has been quiet choppy for the last couple of trading sessions, once again refreshing its 3-month highs at 0.7732, on the back of dovish testimony of Fed Chair J.Yellen, seen yesterday. However, mixed data from the Australian labor market forced the pair to change its direction and to step below the level of 0.77. This morning Australia released Full Employment Change report, showing sharp drop in full-time jobs, while total Employment Change came in green. Now traders’ attention is focused on another bloc of fundamental reports from the US economy for fresh impetus during early NA session.
Softer tone around the greenback is allowing the [B]GBP/USD [/B]pair to recover part of its this week losses. Yesterday the pair gained upside traction, as J.Yellen failed to provide another bullish momentum to the dollar during her second testimony before the Joint Economic Committee. Moreover, better tone around higher-yielding assets is also supporting the pair, as broad post-Yellen’s rally starts to fade away. Now the GBP/USD is trading close to its session highs, marked at 1.2500, however, UK disappointing fundamentals, witnessed this week, are still weighing the pound. Today the UK docket remains empty, leaving the pair at the mercy of dollar’s price dynamics and US dataflow, scheduled on early New-York trades.
The [B]dollar/yen[/B] is extending its bearish rally after brief consolidation phase, seen in Asia. Currently the pair is trading at 113.75, down from its yesterday’s peaks, posted just a few pips below 115 level in wake of upbeat dataset from the US economy. However, the pair lost its upside momentum, as cautious comments from Fed Chairwoman J.Yellen overshadowed positive results of the US economy on Wednesday, forcing the buck to retreat across the board. Today US dollar’s price dynamics will remain as exclusive driver of pair’s near-term movement, while US initial jobless claims, data from US housing market and Philly Fed manufacturing index will also grab part of traders’ attention in NA session.
[B]The main events of the day: [/B]
US Building Permits – 15.30 (GMT +2)
Philadelphia Fed Manufacturing Index – 15.30 (GMT +2)
[B]Support and resistance levels for the major currency pairs:[/B]
EURUSD S. 1.0626 R. 1.0648
USDJPY S. 113.49 R. 113.73
GBPUSD S. 1.2473 R. 1.2537
USDCHF S. 1.0000 R. 1.0030
AUDUSD S. 0.7679 R. 0.7727
NZDUSD S. 0.7216 R. 0.7242
USDCAD S. 1.3021 R. 1.3051
[B]Your European ECN-broker,