The is US$ stronger, oil prices higher, equity markets and US yields are higher. Dollar having best week in 7-months and extended its Fed-fueled rally before going into a consolidation phase in the Asian time-zone. Oil near its highest level since 2014. On the economic calendar the US will be reporting on the Core Personal Consumption Expenditures and Personal Income and Spending and the Michigan consumer sentiment. In other news. Russia’s Foreign Minister said that If it depends on Russia, then there will be no war. We don’t want wars. But we also won’t allow our interests to be rudely trampled, to be ignored,” Joe Biden announces retirement of Supreme Court Justice Stephen Breyer. Parts of the Mid-Atlantic and New England coasts face the threat of a dangerous blizzard, potentially piling 12 inches or more of snow Covid. Delhi Lifts Weekend Curfew, Reopens Restaurants as India COVID Cases. THE US recorded its 7th straight day of record-setting Covid cases. Omicron-specific vaccines could be ready by March. In currency markets. USD/JPY climbed to a nearly three-week high as the result of a widening of US-Japanese yield spread.
USD/CAD gained traction for the third straight day and climbed to over a three-week high. Retreating oil prices undermined the Loonie and provided an additional boost to the pair. Support rises to 1.2710 while resistance resets to 1.2815.
The German economy contracted more than expected in the fourth quarter of last year, as restrictions to slow the spread of the Omicron variant hampered activity. Euro area consumer and business sentiment deteriorated slightly in January.Support remains at 1.1115, while resistance sets at 1.1215.
EUR/GBP stands on slippery grounds while refreshing the weekly low to 0.8315. If the BoE delivers a 25bp rake hike next week, the pair could challenge strong support around the 0.8275 mark. Support holds .8280 (1.2077) while resistance remains at .8400 (1.1905)
GBP/USD bounces off five-week low. Report over UK PM Johnson’s future leadership remains delayed with more negative details getting added of late. Support remains at 1.3349 and resistance at 1.3455.