EUR/USD is currently trading at its highest level since February 9th amid ECB rate hike talk. The pair broke above $1.0650 and climbed to $1.0699 after unnamed sources said the ECB have discussed whether rates can rise before their bond-buying program ends. From a technical view, the February 9th high at $1.0710 is our first level of resistance followed by the February 7th high at $1.0750. On the downside, the overnight low at $1.0573 and yesterday’s low at $1.0525 are in focus.
Having nearly re-tested multi-week lows, GBP/USD has staged a relatively good recovery and is currently trading around daily tops at $1.2188. Above here, we look for resistance at yesterday’s high at $1.2195 followed by Wednesday’s high at $1.2214. In terms of support, today’s low at $1.2140 forms our first support level ahead of the January 17th low of $1.2018.
USD/JPY has retreated from multi-week highs post-US payrolls data, dipping to ¥114.66 lows following comments from President Trump’s commerce secretary Wilbur Ross who said Japan will be high on US priority list for trade agreements. Below here, we look for support at Wednesday’s intraday low of ¥114.27 followed by Monday’s low at ¥113.56. On the upside, the earlier high at ¥115.51 may offer some resistance ahead of the January 19th high at ¥115.62.
GBP/EUR slipped to a fresh seven-week low of €1.1385 this afternoon following source reports suggesting that ECB policymakers considered the question of whether interest rates could rise before their bond-buying program comes to an end. Sterling also remains in a defensive mood as investors countdown to the triggering of Article 50 with recent media report suggesting it could happen as early as Tuesday. From a technical view, we look for support at the January 17th low at €1.1340 followed by the January 16th low at €1.1297. On the upside, the overnight high at €1.1504 and Thursday’s high at €1.1553 are in focus.