Not expecting much action as we’re seeing a typically quiet Monday, but if a surprise catalyst comes up, this simple technical setup on EUR/USD is one to watch for quick pips.
Intermarket Snapshot
| Equity Markets | Bond Yields | Commodities & Crypto |
| DAX: 11139.74 -0.37% FTSE: 7033.58 +0.19% S&P500: 2702.17 -0.16% DJIA: 24995.19 -0.27% |
US 10-yr 2.724% +0.033 Bund 10-YR 0.177% +0.01 UK 10-YR: 1.271% +0.022 JPN 10-YR: -0.012% +0.014 |
Oil: 53.74 -2.75% Gold: 1316.50 -0.42% Bitcoin: 3405.55 -0.55% Etherium: 106.08 -0.16% |
Fresh Market Headlines & Economic data:
- Eurozone Investor Confidence Lowest In Over 4 Years
- Spain’s January jobless rises after Christmas period
- Industrial producer prices down by 0.8% in both euro area and EU28
- U.K. Construction PMI Falls to 10-Month Low on Brexit Uncertainty
- Germany’s Merkel drops hint of a ‘creative’ Brexit compromise
- Australian building approvals tank again
- Australia job ads fell 1.7 percent in Jan – ANZ
- Australia MI Inflation Gauge -0.1% vs 0.4% previous
- New Zealand Building Consents Climb 5.1% In December
- Oil prices slide after hitting 2019 highs on tighter supply outlook
Upcoming Potential Catalysts on the Forex Calendar:
- Australia AIG Services PMI at 9:30 pm GMT
- New Zealand ANZ Commodity Prices at 12:00 am GMT (Feb 5.)
- Australia Trade Balance at 12:30 am GMT (Feb 5.)
- Australia Retail Trade at 12:30 am GMT (Feb 5.)
- Japan Composite & Services PMI at 12:30 am GMT (Feb 5.)
What to Watch: EUR/USD
With not too much action going on so far, and not much expected given the light economic calendar for the rest of the U.S. trading session, we’re checking out this retest of a minor area of interest on EUR/USD.
The 1.1450 area has been a battleground for the bulls and bears over the four or five trading sessions, and it looks like there’s downward pressure on it as we’re seeing lower highs after finding a top around the 1.1500 handle.
Weak European economic data came out during the morning London session, so there could still be a bearish lean today, making a break below this area one to watch for the session if we get some volatility catalyst from the U.S.
For EUR/USD bulls, a break above the falling highs will likely draw in buyers, or at least for some shorts to cover. But again, it’s not a likely scenario unless a surprise catalyst, which is always a possibility every single day given the slew of geopolitical drivers in the U.S. like the U.S.-China trade negotiations or the political drama that seems to pop up often between the White House and Congress.