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There was not much on the economic data front to give the markets a boost yesterday and so we had to try read some clues through some of the political developments that we saw unfold yesterday. Major news is that the US National Security Advisor, Michael Flynn has resigned, reports suggest that he was giving a choice between resigning and being fired after it emerged that he lied to Vice President Pence over conversations he had with Russia. Barely three weeks into the new administration and US politics is already clouded in controversy.
In the Zone
- EURUSD
- NZDUSD
- USDCAD
- USDJPY
- USDCHF
- USDZAR
Noteworthy News
- Many Europeans are breathing a sigh of relief after it emerged that despite winning the first round of voting, Le Pen was far behind after the second round in French elections. I wouldn’t read too much into that just yet – Trump was always behind Clinton, until voting day. This election could be tighter than what is been reported.
Recap
The dollar spent most of the day on the front foot and made head way against most the pairs, it is still too early to determine how this resignation will affect the dollar. I think that the initial reaction will be for the greenback to weaken, but don’t be surprised if the dollar strengthens later on in the afternoon, you may see some traders interpret this as evidence of what the people wanted to see out of the government for some time – accountability!
The EURUSD, for lack of a better word, slumped yesterday. We discussed yesterday the range that the pair has formed of late and we were keen to see the range break before we cast our eye over the pair. The pair broke through the 1.0630 support level and traded down as low 1.0585, in the new day I would expect the pair to challenge that 1.0610 – 1.0630 level again and we will be watching to see if that level becomes resistance now.
PM Trudeau of Canada was the latest leader to visit Washington, and Canada completely avoided Trumps wrath! If anything President Trump launched a charm offensive and seemed to want to create even better relations and trade with Canada, even suggesting that the two needed to make it easier to move across the border. Despite a stronger USD and weaker oil prices, the CAD still managed to strengthen towards 1.3050. There is some near support at 1.3040 and I will watching to see how this pair trades in the London session.
The pairs are a mixed bag this morning with most pairs undecided as to where we go against the USD this morning, but we do cover that in the morning video.
Dean's Daily FX Update – 14 February 2017
Daily Ranges 14/02/2017
Majors
EURUSD
Resistance 1.0640 – 1.0650
Support 1.0600 – 1.0585
GBPUSD
Resistance 1.2550 – 1.2560
Support 1.2450 – 1.2440
AUDUSD
Resistance 0.7670 – 0.7710
Support 0.7625 – 0.7610
NZDUSD
Resistance 0.7210 – 0.7230
Support 0.7170 – 0.7150
USDCAD
Resistance 1.3110 – 1.3130
Support 1.3040 – 1.3020
USDJPY
Resistance 113.90 – 114.20
Support 113.20 – 113.00
USDCHF
Resistance 1.0040 – 1.0060
Support 1.0000 – 0.9960
Rand
USDZAR
Resistance 13.3550 – 13.3050
Support 13.2110 – 13.1750
EURZAR
Resistance 14.1950 – 14.2180
Support 14.0795 – 14.0000
GBPZAR
Resistance 16.7310 – 16.7660
Support 16.6100 – 16.5740
Minors
AUDCAD
Resistance 1.0060 – 1.0080
Support 1.0000 – 0.9980
AUDJPY
Resistance 87.40 – 87.70
Support 86.50 – 86.20
EURCHF
Resistance 1.0670 – 1.0690
Support 1.0630 – 1.0610
EURGBP
Resistance 0.8510 – 0.8530
Support 0.8460 – 0.8430
EURJPY
Resistance 121.00 – 121.20
Support 120.30 – 120.00
GBPJPY
Resistance 142.77 – 142.90
Support 141.40 – 141.20
GBPCAD
Resistance 1.6410 – 1.6430
Support 1.6310 – 1.6300
GBPCHF
Resistance 1.2590 – 1.2610
Support 1.2500 – 1.2480
Indices
DE30
Resistance 11760 – 11800
Support 11690 – 11660
UK100
Resistance 7280 – 7320
Support 7250 – 7230
US500
Resistance 2330 – 2360
Support 2280 – 2260
US30
Resistance 20400 – 20450
Support 20250 – 20200
SA40
Resistance 46000 – 46200
Support 45000 – 44800
Commodities
BRENT
Resistance 56.80 – 57.00
Support 55.50 – 55.10
XAUUSD
Resistance 1235.00 – 1250.00
Support 1215.00 – 1200.20
XAGUSD
Resistance 17.80 – 17.99
Support 17.40 – 17.20
Important Economic Data out today
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