Sterling Softens ahead of BoE, Dollar Maintains Gains
Action Insight Daily Report 2-4-21

Sterling Softens ahead of BoE, Dollar Maintains Gains

Sterling softens notably today as focus turns to BoE rate decision, and more importantly the stance regarding negative interest rates. Euro and Swiss Franc remain generally weak too. New Zealand and Canadian Dollars are paring some gains as risk markets turned mixed again. But Aussie is somewhat bucking the trend with a rebound. Dollar buying is picking up in Asian session, and there is some upside prospects, depending on tomorrow's non-farm payroll report.

Technically, GBP/USD's break of 1.3608 minor support is a sign of weakness in the Pound. some focuses will be on 141.16 support in GBP/JPY and 0.8917 resistance in EUR/GBP. These two levels are still far from the current prices. But they could be vulnerable should selling in Sterling intensifies.

In Asia, currently, Nikkei is down -0.90%. Hong Kong HSI is down -1.56%. China Shanghai SSE is down -1.17%. Singapore Strait Times is down -0.98%. Japan 10-year JGB yield is up 0.0040 at 0.063. Overnight, DOW rose 0.12%. S&P 500 rose 0.10%. NASDAQ dropped -0.02%. 10-year yield rose 0.026 to 1.131.

Full Report Here

Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

BOE Preview - Awaiting Updates on Negative Rate Policy and Economic Projections
US Crude Oil and Distillate Inventory Dropped while Gasoline Gained Last Week
RBA Extends Asset Purchases of AUD 100B Until September
Central Bank Views | China Watch | Oil N' Gold | Special Topics

GBP/USD Daily Outlook

Daily Pivots: (S1) 1.3613; (P) 1.3648; (R1) 1.3678; More....

GBP/USD's break of 1.3608 minor support suggests that deeper correction is underway. Intraday bias is turned back to the downside for channel support (now at 1.3481). Strong support is expected there to contain downside to bring up trend resumption. Above 1.3682 minor resistance will turn bias to the upside to bring retest of 1.3758 resistance. However, sustained break of the channel support will argue that it's already correcting whole up trend 1.1409. Near term outlook will be turned bearish for deeper fall.

Full Report Here

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

Recommended Readings

AUD/USD Upsides Capped, Dollar Extends Gains

Is It Time For Bears To Step In USD/JPY?

Italy Seeks To Bring Draghi Out Of Retirement, But It Can't Help The Euro

The Complete Guide To Non-Farm Payrolls (NFP)

Can Nonfarm Payrolls Extend the Dollar's Recovery?

Will the Bank of England Embrace Negative Rates?

Fundamental Analysis | Technical Analysis
In-depth Reports
RBA Extends QE With a Further AUD100 billion; Sentiment is Supportive of Current Stimulatory Stance
China Monetary Tightening? Not so Fast
We Have Raised Our Forecasts for AUD and Bond Rates
Dollar Remains Overvalued; Can America's Twin Deficits Still Sink It?
The Economic Outlook: What Could Possibly Go Wrong?
Update To Westpac's RBNZ OCR Forecast – Enough Is Enough
Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
21:45 NZD Building Permits M/M Dec 4.90% 1.20%
0:00 NZD ANZ Business Confidence Feb P 11.8 -15.6 9.4
0:30 AUD Trade Balance (AUD) Dec 6.79B 9.00B 5.02B 5.01B
6:45 CHF SECO Consumer Climate Q1 -16 -13
9:30 GBP Construction PMI Jan 52.8 54.6
10:00 EUR Eurozone Retail Sales M/M Dec 1.30% -6.10%
12:00 GBP BoE Interest Rate Decision 0.10% 0.10%
12:00 GBP BoE Asset Purchase Facility 895B 895B
12:00 GBP MPC Official Bank Rate Votes 0--0--9 0--0--9
12:00 GBP MPC Asset Purchase Facility Votes 0--0--9 0--0--9
12:30 USD Challenger Job Cuts Jan 134.50%
13:30 USD Initial Jobless Claims (Jan 29) 850K 847K
13:30 USD Nonfarm Productivity Q4 P -1.80% 4.60%
13:30 USD Unit Labor Costs Q4 P 3.40% -6.60%
15:00 USD Factory Orders M/M Dec 0.60% 1.00%
15:30 USD Natural Gas Storage -128B