FX Breakout Monitor: USD breaking higher in slow motion
The big EURUSD pair finally broke to the new local lows yesterday in the wake of the dovish ECB meeting, but faces a bit level almost immediately to the downside and a test next week in the form of the next FOMC meeting on Wednesday. Elsewhere, the attempt to take sterling to new highs in the wake of firm UK PMIs today was rebuffed.
FX Update: ECB wrap, sterling eyes flash PMIs
The ECB meeting was seen as mostly a disappointment as it generated little excitement on the outcome of the policy review now under way. Lagarde largely refused to answer the interesting questions. In world news, coronavirus headlines remain a concern, but most markets are oddly immune to this issue at the moment. Elsewhere, sterling is on the move after flash January PMIs.
FX Breakout Monitor: USD losing momentum, GBP trying to gear up
The negative sentiment from the worrisome virus outbreak in China has done little to spark volatility. The US dollar is doing what it has done best over the last eighteen months by not developing further momentum after teasing important upside breakout levels. Sterling has shown fresh signs of life today on strong UK jobs numbers.