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USD starts the week lower after Friday’s solid session

jeffriess
January 20, 2020
by Joseph Jeffriess, Market Analyst

Risk majors edging higher into Monday trade after solid losses to end the week.

Friday saw early rallies reversed from risk to the USD setting up strong losses to end the week. The USD found demand into the London session as traders moved out of risk and back into safe havens. The JPY also saw a solid session to the three main risk majors. Data mainly hit the GBP with retail sales figures coming in way under expectations at -0.6%. This miss got sellers going on the GBP. Some positive data came in later in the session showing home building in the U.S. hit a 13 year high.

Stock Indexes saw further gains U.S. indexes touched and closed at new records. The US30 (Dow) saw a late session fade. Indexes in Europe saw strong demand, the FTSE and CAC leading the gains out of the major indexes adding 0.85% and 1.02% respectively.

Oil and gold both moved higher but in quite different technical pictures. Gold continues to push for a continuation type pattern but remains held in a minor range with 1560 the main obstacle atm. Oil continues to move off its support hold in a corrective phase.

Today risk has started the week higher to the USD and JPY. The AUDJPY +0.22%, EURJPY +0.11%. Local and Asian indexes have started in the positive, the ASX200 +0.33% the Nikkei +0.13%.

One of the main questions we’re asking today looking at price action in the majors to the USD is how will today’s rallies finish up? Will we see fades and new continuations develop? Today’s video below, we run over Friday’s price action and look at today so far with price breakdowns from a bull and bear perspective over the AUDUSD, EURUSD, GBPUSD and Oil. We look at the key European index moves on Friday and some of the main price positions we’re watching.

News will be light in today’s and tonight’s session with no high impact data due. USD liquidity may be lighter than normal tonight as some US banks may be observing the Martin Luther King Bank holiday.

Good trading from Eightcap.
All times are AEDT.