Action Insight Weekly Report 1-26-19
FOMC, Government Reopen, US-China Trade Talks & NFP ahead for Dollar | Action Insight Weekly Report 1-26-19 | | FOMC, Government Reopen, US-China Trade Talks & NFP ahead for Dollar |  Dollar ended last week as the weakest one after deep selloff before weekly close. A whole lot of events are scheduled ahead to keep the greenback busy. Those include FOMC rate decision, US-China trade talk, non-farm payrolls. Also, the partial government shutdown has finally ended temporarily and we'll have more economic data for gauging the economy of the US. Australian Dollar ended as the second weakest but it has already pared back much losses after Friday's rebound. Yen followed as the third weakest. Sterling ended as the strongest one and maintained strengthen towards the end. It's boosted by receding chance of no-deal Brexit. The debate and vote on amendments in the Commons on Tuesday will likely provide a more concrete path forward regarding Brexit. New Zealand Dollar was the second strongest after solid CPI lowered chance of an RBNZ cut. Euro was surprisingly resilient and survived a batch of weak data as well as dovish ECB. The common currency will face tests from GDP and CPI this week. | GBP/JPY Weekly Outlook GBP/JPY's rebound from 131.51 extended to as high as 144.84 last week and there is no sign of topping yet. Initial bias remains on the upside this week for trendline resistance at around 147.35. We'd expect strong resistance from there to limit upside at first attempt. On the downside, below 143.39 minor support will turn intraday bias neutral first and bring consolidations. But further rise will remain in favor as long as 139.43 resistance turned support holds. |  | | | |
