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Corona-who? Lockdown prospects in New Zealand and rising trade and geopolitical tensions between the U.S. and China got nothing on optimism over vaccine prospects today.

Think the risk-taking will extend to London session trading?

Before we check out today’s setup, here’s a list of all the market-moving themes during the Asian session:

Currency Snapshot

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • BOJ’s presser on tap
  • U.K.’s CPI numbers at 6:00 am GMT
  • BOE MPC member Silvana Tenreyro to give a speech at 8:00 am GMT
  • Canada’s manufacturing sales at 12:30 pm GMT
  • NY manufacturing sales at 12:30 pm GMT
  • BOC’s policy decision at 2:00 pm GMT

What to Watch: GBP/CHF

GBP/CHF 1-hour Forex Chart
GBP/CHF 1-hour Forex Chart

GBP/CHF is consolidating around the 1.1825 area that lines up with a mid-channel and 200 SMA resistance as well as a key area of interest on the 1-hour time frame.

Remember that the CPI report is due today and, while it’s not as market-moving as the monthly GDP numbers, it can still support or stall intraday trends.

The pound stalling its Asian session rally is good news for market bears who are looking for another round of disappointing headlines from the U.K.

Based on the pair’s average daily volatility, GBP/CHF could fall to the 1.1750 if we do see downside misses from the U.K.

If the risk-friendly trade environment extends to London session trading, however, then GBP/CHF could break above its current consolidation to reach areas of interest closer to the 1.1870 or 1.1900 levels.