empty
 
 

20.01.2022: Reasons for USD possible depreciation. Outlook for EUR/USD and GBP/USD

loader
views
The US dollar ceased rising against the euro and the pound sterling. Investors were buying the greenback amid the expectations of higher interest rates. Today, there is no use to open long positions on the instrument. In our video review on InstaForex TV channel, we will find out the main reasons for such changes.
In the eurozone, the final inflation data met the preliminary estimate, which unveiled acceleration to 5.0% from 4.9%. In other words, market participants did not receive any new information. That is why they ignored the report.
Meanwhile, the US statistical data may lead to a deeper decline in the US dollar. The number of first-time claims may increase by 2 thousand, thus remaining almost at the same level. However, the number of continuing claims may surge by 91 thousand. This significant jump could be considered a real sign of the deterioration in the US labor market situation. It could be the key reason for the greenback’s further drop. Now, let us focus on the trading charts.
The euro/dollar pair is recovering after a rapid decline logged on January 18. The level of 1.1315 is acting as intermediate support. The pair climbed approximately by 50 pips from the mentioned level. Now, the pair is returning to the range of 1.1230/1.1370.
Under the current conditions, the reading of 1.1370 may act as resistance, boosting interest for short positions. The signal will be proved, only if the price fails to consolidate above the mentioned level. In this case, the quote is highly likely to return to the intermediate support level of 1.1315. (*)
The alternative scenario will become possible after the price consolidates above 1.1400.
At the same time, the pound/dollar pair slackened its decline near 1.3600. This led to a rebound and then, to stagnation slightly above the control level. Although on January 14-18, the pound sterling showed a considerable drop, it is still at the peak of the uptrend. That is why we cannot say that the market sentiment has changed.
Under the current conditions, the pair may remain stagnant near 1.3600. This, in turn, may result in the formation of the short-term range between 1.3590 and 1.3655. If the price fixes below 1.3570, it is likely to go on falling.

00:00 Intro
00:25 Eurozone Annual Inflation Rate
00:41 American unemployment statistics
01:15 EUR / USD
02:05 GBP / USD


https://www.instaforex.com

FX Analytics - https://www.instaforex.com/forex_analytics
Forex Calendar - https://www.instaforex.com/forex_calendar
Forex TV from InstaForex - https://www.instaforex.com/instaforex_tv

Forex charts - https://www.instaforex.com/charts
Instant account opening - https://www.instaforex.com/fast_open_live_account
Forex Trading Contests - https://www.instaforex.com/forex_contests

List of official InstaForex blogs:
https://www.facebook.com/instaforex
https://www.instagram.com/instaforex/
https://twitter.com/InstaForex

#forex_news #european_session #instaforex_tv
← back to video list

Market TV Review

Market TV Review

InstaForex TV Calendar

InstaForex TV Calendar

Geography with InstaForex

Geography with InstaForex

InstaForex TV Interview

InstaForex TV Interview

Can't speak right now?
Ask your question in the chat.