The British pound has broken significantly below the 190 yen level and then broke significantly lower than that.
That being said, the market has turned around to show signs of somewhat resilient behavior.
If we can turn around and break above the 190 yen level, I think that could be a fairly decent sign of bullish pressure.
If we can break above there, then the market could go looking for the 50-day EMA, possibly even the 200-day EMA after that. If we break down below the bottom of the candlestick, then the market could drop to the 187 yen level and then possibly the 185 Yen level. These are a few of the important levels I will be watching if we do drop from here.Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Support Sitting BelowThe 185 Yen level is an area that has been important multiple times as support. So, I think you have to pay close attention to it if we do drop from there. But really at this point in time, I think you’ve got a situation where we are starting to see a little bit of value come into the picture. And despite the fact that the Bank of Japan is suggesting that they are going to lift rates later this year. The reality is that the interest rate differential will continue to be huge between these two currencies and you do get paid to hold British pounds against the yen. The yen has been a bit of a juggernaut as of late, but I don’t know if this is a longer term trade. I think given enough in the meantime, though, we’re trying to get our footing, and it is going to be quite noisy. This is fairly common for this pair, and therefore we should be cautious about our position sizing in this market going forward.EURUSD Chart by TradingViewBegin trading our daily forecasts and analysis . Here is a list of Forex brokers in Japan to work with.
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During the trading session on Thursday, we have seen the Euro rallied quite significantly against the US dollar, as it looks like we are going to head toward the 1.05 level yet again.
The 1.05 level is an area that is a large, round, psychologically significant figure, and of course we have seen this area tested a couple of times.
At this point in time I think it is going to be very difficult to break through, mainly because there’s so much congestion all the way to the 1.06 level.
Technical AnalysisTop Forex Brokers1 Get Started 74% of retail CFD accounts lose money The technical analysis for this EUR/USD pair of course is pretty significant to look at, as the market is at the top of a consolidation range. Quite frankly, this is a market that I think will be looking to see whether or not the US dollar can finally soften, because quite frankly it’s like a wrecking ball to risk appetite. That being said, Germany and France exiting a recession is what most people are starting to price in, so to be interesting to see how that plays out.Recently, we seen interest rates in the United States drift a little bit lower, and that’s part of what’s going on, but the same time we are starting to see people think that perhaps there won’t be as big of a trade war as once anticipated. It’ll be interesting to see if that actually ends up being the case, it looks beyond is here: Donald Trump could write this train by putting out a tweet. I have gotten several emails from newer traders who have no idea how to deal with Trump 2.0, which is going to be challenging under the best of circumstances.EURUSD Chart by TradingViewAs things stand right now, we are simply at the top of a consolidation area and not waiting to see whether or not the euro can break out. I think it’s going to be a struggle, or at least at this moment. However, once we get above the 1.06 level I think the trend will change permanently.Ready to trade our EUR/USD analysis and predictions ? Here are the best European brokers to choose from
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GBP/USD climbed to its highest level in two months above 1.2650 on Friday.
Mixed macroeconomic data releases from the UK limit the pair’s upside.
The US economic calendar will feature preliminary PMI reports for February.
GBP/USD corrects lower and trades near the 1.2650 area in the European session on Friday, after having set a new two-month high at 1.2678 earlier in the day. Despite the recent pullback, the pair’s technical outlook suggests that the bullish bias remains intact.
British Pound PRICE This week
The table below shows the percentage change of British Pound (GBP) against listed major currencies this week. British Pound was the strongest against the Canadian Dollar.
USD
EUR
GBP
JPY
CAD
AUD
NZD
CHF
USD
0.17%
-0.48%
-1.25%
0.09%
-0.55%
-0.65%
-0.13%
EUR
-0.17%
-0.49%
-1.45%
0.02%
-0.64%
-0.72%
-0.20%
GBP
0.48%
0.49%
-0.86%
0.52%
-0.09%
-0.23%
0.29%
JPY
1.25%
1.45%
0.86%
1.36%
0.73%
0.81%
1.09%
CAD
-0.09%
-0.02%
-0.52%
-1.36%
-0.62%
-0.74%
-0.22%
AUD
0.55%
0.64%
0.09%
-0.73%
0.62%
-0.09%
0.44%
NZD
0.65%
0.72%
0.23%
-0.81%
0.74%
0.09%
0.52%
CHF
0.13%
0.20%
-0.29%
-1.09%
0.22%
-0.44%
-0.52%
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
On Thursday, the broad-based selling pressure surrounding the US Dollar (USD) helped GBP/USD push higher. Disappointing Jobless Claims data and falling US Treasury bond yields weighed on the USD.
The UK’s Office for National Statistics (ONS) reported early Friday that Retail Sales rose by 1.7% on a monthly basis in January. This reading followed the 0.6% decline recorded in December and came in better than the market expectation for an increase of 0.3%.
Other data from the UK showed that the S&P Global/CIPS Manufacturing PMI dropped to 46.4 in early February, suggesting that the business activity in the manufacturing sector contracted at an accelerating pace. On a positive note, the Services PMI improved to 51.1 from 50.9 in January. Nevertheless, these mixed data releases seem to be making it difficult for Pound Sterling to preserve its strength.
S&P Global will release the Manufacturing and Services PMI reports for the US later in the day. If either of the headline PMIs unexpectedly come in below 50 and point to a contraction, the initial market reaction could force the USD to come under renewed selling pressure and open the door for a leg higher in GBP/USD.
GBP/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart retreats toward 60 after rising slightly above 70 on Thursday, suggesting that the bullish bias remains intact following a technical correction.
GBP/USD faces a pivot level at 1.2650 (Fibonacci 78.6% retracement of the latest uptrend). If the pair manages to stabilize above this level and confirms it as support, 1.2700-1.2710 (round level, static level) could be seen as next resistance before 1.2750 (static level).
On the downside, 1.2600 (round level, static level) aligns as first support ahead of 1.2530 (Fibonacci 61.8% retracement) and 1.2500 (round level, static level).
Pound Sterling FAQs
The Pound Sterling (GBP) is the oldest currency in the world (886 AD) and the official currency of the United Kingdom. It is the fourth most traded unit for foreign exchange (FX) in the world, accounting for 12% of all transactions, averaging $630 billion a day, according to 2022 data. Its key trading pairs are GBP/USD, also known as ‘Cable’, which accounts for 11% of FX, GBP/JPY, or the ‘Dragon’ as it is known by traders (3%), and EUR/GBP (2%). The Pound Sterling is issued by the Bank of England (BoE).
The single most important factor influencing the value of the Pound Sterling is monetary policy decided by the Bank of England. The BoE bases its decisions on whether it has achieved its primary goal of “price stability” – a steady inflation rate of around 2%. Its primary tool for achieving this is the adjustment of interest rates. When inflation is too high, the BoE will try to rein it in by raising interest rates, making it more expensive for people and businesses to access credit. This is generally positive for GBP, as higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls too low it is a sign economic growth is slowing. In this scenario, the BoE will consider lowering interest rates to cheapen credit so businesses will borrow more to invest in growth-generating projects.
Data releases gauge the health of the economy and can impact the value of the Pound Sterling. Indicators such as GDP, Manufacturing and Services PMIs, and employment can all influence the direction of the GBP. A strong economy is good for Sterling. Not only does it attract more foreign investment but it may encourage the BoE to put up interest rates, which will directly strengthen GBP. Otherwise, if economic data is weak, the Pound Sterling is likely to fall.
Another significant data release for the Pound Sterling is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought-after exports, its currency will benefit purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
EUR/USD holds steady near 1.0500 after posting strong gains on Thursday.
Investors await preliminary February PMI data from Germany, the Eurozone and the US.
Profit-taking ahead of the German election could ramp up the pair’s volatility heading into the weekend.
EUR/USD gathered bullish momentum and climbed above 1.0500 on Thursday, as the US Dollar (USD) came under heavy selling pressure. The pair holds steady at around 1.0500 in the European morning on Friday as investors await preliminary February Purchasing Managers’ Index (PMI) data.
Euro PRICE This week
The table below shows the percentage change of Euro (EUR) against listed major currencies this week. Euro was the strongest against the Canadian Dollar.
USD
EUR
GBP
JPY
CAD
AUD
NZD
CHF
USD
-0.05%
-0.68%
-1.07%
0.06%
-0.61%
-0.72%
-0.14%
EUR
0.05%
-0.48%
-1.03%
0.21%
-0.47%
-0.57%
0.01%
GBP
0.68%
0.48%
-0.46%
0.70%
0.06%
-0.09%
0.49%
JPY
1.07%
1.03%
0.46%
1.13%
0.48%
0.55%
0.89%
CAD
-0.06%
-0.21%
-0.70%
-1.13%
-0.65%
-0.79%
-0.21%
AUD
0.61%
0.47%
-0.06%
-0.48%
0.65%
-0.09%
0.49%
NZD
0.72%
0.57%
0.09%
-0.55%
0.79%
0.09%
0.58%
CHF
0.14%
-0.01%
-0.49%
-0.89%
0.21%
-0.49%
-0.58%
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
The USD Index, which tracks the USD’s valuation against a basket of six major currencies, declined sharply on Thursday. The US Department of Labor reported that the weekly Initial Jobless Claims rose to 219,000 from 214,000. Moreover, the benchmark 10-year US Treasury bond yield dropped below 4.5%, further weighing on the USD.
HCOB Composite PMI in Germany and the Eurozone are both forecast to come in above 50 in February’s flash estimate and show an ongoing expansion in the private sector’s business activity. In case one of these PMIs drop into the contraction territory below 50, the Euro could have a hard time finding demand.
In the second half of the day, S&P Global will publish the Manufacturing and Services PMI reports for the US. If the Services PMI comes in above the market expectation of 53, the USD could gather strength with the immediate reaction.
It’s worth mentioning that Germany is preparing for a general election to the Bundestag, the lower house of its parliament, on February 23. Investors could opt to book their profits toward the end of the European session and trigger a leg lower in EUR/USD.
EUR/USD Technical Analysis
The Relative Strength Index (RSI) indicator on the 4-hour chart holds above 60, suggesting that the bullish bias remains intact. On the upside, 1.0500-1.0510 (round level, Fibonacci 78.6% retracement of the latest downtrend) aligns as the first resistance area before 1.0550 (static level) and 1.0600 (beginning point of the downtrend).
In case EUR/USD fails to stabilize above 1.0500-1.0510, buyers could hesitate. In this scenario, supports could be seen at 1.0440 (Fibonacci 61.8% retracement), 1.0390-1.0400 (100-period Simple Moving Average (SMA), 50-day SMA, Fibonacci 50% retracement of the latest downtrend) and 1.0375 (200-period SMA).
Euro FAQs
The Euro is the currency for the 19 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.
Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy.
Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.
Despite platinum price attempt to face the negative pressures, the frequent consolidation below 983.00$ will increase the chances of activating the correctional bearish track on the near-term basis, to expect suffering more losses by crawling towards 950.00$
On the other hand, succeeding to jump above 983.00$ and providing positive close will allow the price to form some bullish waves, to achieve more gains by rallying towards 1000.00$ followed by reaching 61.8% Fibonacci correction level at 1017.00$.
The expected trading range for today is between 950.00$ and 983.00$
Despite platinum price attempt to face the negative pressures, the frequent consolidation below 983.00$ will increase the chances of activating the correctional bearish track on the near-term basis, to expect suffering more losses by crawling towards 950.00$
On the other hand, succeeding to jump above 983.00$ and providing positive close will allow the price to form some bullish waves, to achieve more gains by rallying towards 1000.00$ followed by reaching 61.8% Fibonacci correction level at 1017.00$.
The expected trading range for today is between 950.00$ and 983.00$
Oracle Corporation’s stock price (ORCL) rose in the intraday levels, amid the dominance of the main upward trend in the medium term, with the stock trading alongside the secondary short-term trend line, with positive signals from the RSI despite reaching overbought levels, coupled with positive pressure due to trading above the 50-day SMA.
Therefore we expect more gains for the stock, provided it settles firmly above $170.70, targeting the pivotal resistance of $198.30.
Oracle Corporation’s stock price (ORCL) rose in the intraday levels, amid the dominance of the main upward trend in the medium term, with the stock trading alongside the secondary short-term trend line, with positive signals from the RSI despite reaching overbought levels, coupled with positive pressure due to trading above the 50-day SMA.
Therefore we expect more gains for the stock, provided it settles firmly above $170.70, targeting the pivotal resistance of $198.30.
During the trading session on Thursday, we have seen the Euro rallied quite significantly against the US dollar, as it looks like we are going to head toward the 1.05 level yet again.
The 1.05 level is an area that is a large, round, psychologically significant figure, and of course we have seen this area tested a couple of times.
At this point in time I think it is going to be very difficult to break through, mainly because there’s so much congestion all the way to the 1.06 level.
Technical Analysis
The technical analysis for this EUR/USD pair of course is pretty significant to look at, as the market is at the top of a consolidation range. Quite frankly, this is a market that I think will be looking to see whether or not the US dollar can finally soften, because quite frankly it’s like a wrecking ball to risk appetite. That being said, Germany and France exiting a recession is what most people are starting to price in, so to be interesting to see how that plays out.
Recently, we seen interest rates in the United States drift a little bit lower, and that’s part of what’s going on, but the same time we are starting to see people think that perhaps there won’t be as big of a trade war as once anticipated. It’ll be interesting to see if that actually ends up being the case, it looks beyond is here: Donald Trump could write this train by putting out a tweet. I have gotten several emails from newer traders who have no idea how to deal with Trump 2.0, which is going to be challenging under the best of circumstances.
As things stand right now, we are simply at the top of a consolidation area and not waiting to see whether or not the euro can break out. I think it’s going to be a struggle, or at least at this moment. However, once we get above the 1.06 level I think the trend will change permanently.
