Cable remains under pressure as markets await FOMC decision

<p>The markets are taking their lead from the emerging markets sector, with Turkey and Argentina remaining under pressure and the situation further deteriorating in Ukraine. The Nikkei, […]</p>

The markets are taking their lead from the emerging markets sector, with Turkey and Argentina remaining under pressure and the situation further deteriorating in Ukraine.

The Nikkei, Hand Seng and Kopsi all had substantial losses following the worst close for the S&P on Friday for seven months.

Cable remains under pressure following comments from BoE Governor Mark Carney at the Economic forum in Davos.

Carney again played down the significance of the 7% unemployment threshold, saying that, “we will assess the overall conditions in the labour market (and) more broadly the supply capacity of the economy, just as we’ve said all along that we would do at that point, and set policy appropriately”.

The ECB President again reminded the markets that there was “an unwanted tightening of monetary conditions in the euro area”, with the Financial Times suggesting that the ECB may look to buy loans from banks to households and companies to fight the threat of deflation, which would signal an unconventional method of QE not seen before.

This week’s highlight will be the FOMC decision on Wednesday evening as we await the next reduction in asset purchases despite the weather distorted unemployment report.

We will also see GDP readings from the US and UK, with today’s data coming from Germany in the latest IFO reading.

The US will be revealing its latest new home sales data this afternoon.

 

 

EUR/USD

Supports 1.3650-1.3630-1.3570 | Resistance 1.3750-1.3780-1.3810


USD/JPY

Supports 102.00-101.75-101.00  | Resistance 102.80-103.10-103.85

 



GBP/USD

Supports 1.6475-1.6445-1.6400 | Resistance 1.6550-1.6630-1.6670

 

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.