Investors Keep Their Gaze Locked on Monetary Policy

EU SHARES GAIN, WALL STREET SLIDES AMID LIGHT ECONOMIC AGENDA

The US dollar traded mixed against the other major currencies on Monday and during the Asian session Tuesday. It gained only versus EUR and JPY, while it underperformed against AUD, CAD and NZD in that order. The greenback was found virtually unchanged versus GBP and CHF.

EUR/USD — TECHNICAL OUTLOOK

EUR/USD traded lower on Monday, after it hit resistance at 1.1483 on Friday. At the time of writing, the rate is testing Friday’s low of 1.1413, but it still stays above the key zone of 1.1375, which acted as the upper bound of the range that continued the price action between November 26th and January 12th. Thus, we would still see chances of a potential rebound.

AUD/JPY — TECHNICAL OUTLOOK

AUD/JPY edged north today during the Asian session, breaking above the downside resistance line drawn from the high of January 5th, as well as above the key barrier of 82.20. This, combined with the fact that the rate is now trading above a newly-established upside line drawn from the low of January 28th, paints a positive short-term picture.

AS FOR TODAY’S EVENTS

We have the US NFIB small business optimism index for January and Canada’s trade balance for December. No forecast is available for the NFIB index, while Canada’s trade surplus is expected to have decreased to CAD 2.62bn from CAD 3.13bn.

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