Texas Freeze Supports Oil, GBP-Traders Await Inflation Data

Oil Rallies due to Snow Storm, UK CPIs on Tomorrow’s Agenda

The US dollar traded lower or unchanged against all but one of the other G10 currencies on Monday and during the Asian session Tuesday. It gained only versus JPY, while it underperformed against NOK, CAD, GBP and CHF in that order. The greenback was found virtually unchanged against EUR, AUD, NZD, and SEK.

Brent Oil — Technical Outlook

Brent Oil continues to drift north, after reversing higher from a severe fall in March and April 2020. The commodity is currently balancing above a short-term tentative upside support line taken from the low of February 1st. That said, after finding resistance near the 63.82 zone on Friday, the “black gold”, so far is finding it hard to overcome that obstacle. Given the steep upmove we already saw in the recent day days, there might be a chance to see a small correction lower before another possible leg of buying, that is, of course, if the price remains somewhere above that upside line. Hence our cautiously-bullish approach for now.

GBP/USD — Technical Outlook

GBP/USD is still seen moving to the upside, but from the beginning of February, the pair’s uprise became even steeper. The rate is currently balancing above a short-term tentative upside support line taken from the low of February 4th. This morning, GBP/USD found strong resistance near the 1.3950 barrier and corrected back down from there. If the pair struggles to overcome the 1.3950 hurdle straight away, we may see a larger correction lower. That said, as long as the rate remains above that upside line, we will stay positive with the near-term outlook.

As for Today’s Events

During the European trading, we get the German ZEW survey for February, the 2nd estimate of Eurozone’s GDP for Q4, as well as the bloc’s preliminary employment change for the quarter. With regards to the ZEW survey, the current conditions index is expected to have declined to -67.0 from -66.4, while the economic sentiment index is forecast to have fallen to 59.5 from 61.8. The 2nd estimate of Eurozone’s GDP is anticipated to confirm its preliminary estimate of -0.7% qoq, while no forecast is available for the employment change. Later, from the US, we have the New York Empire State manufacturing index for February.

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