{"id":163943,"date":"2020-01-27T10:58:18","date_gmt":"2020-01-27T15:58:18","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=163943"},"modified":"2020-01-27T10:33:27","modified_gmt":"2020-01-27T15:33:27","slug":"the-week-ahead-out-of-the-woods-yet","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/01\/the-week-ahead-out-of-the-woods-yet\/","title":{"rendered":"The Week Ahead: Out Of The Woods Yet?"},"content":{"rendered":"
January 27, 2020<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

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Trade of the week<\/strong><\/h3>\n

USDCHF Makes A Comeback<\/strong><\/h2>\n

The US dollar has been holding strong against major currencies ahead of the Fed\u2019s first meeting of the year. Market participants eagerly await the central bank\u2019s policy outlook for 2020. As trade sentiment improves, most expect rates to stay low until inflation picks up. A confident Fed could maintain the greenback\u2019s upward trajectory. The downside risk, though less likely, would be a dovish stance which would undercut market optimism. The dollar has recouped most losses from mid-January.\u00a00.9760<\/strong>\u00a0will be seller\u2019s stronghold to keep the downtrend intact.<\/p>\n

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EURJPY Struggles To Stay Up<\/strong><\/h2>\n

The single currency could carry on the sell-off triggered by a passive ECB last week. Policymakers pledged to stick with the bond-buying programme, and if needed, cut interest rates until inflation makes its return in the euro zone. As a result, markets will be extremely sensitive to this Friday\u2019s CPI data. A better-than-expected figure may provide strong relief and lift the euro against its peers. If not, the euro could reverse to a downtrend. The psychological level of\u00a0120.00<\/strong>\u00a0is a key support to maintain traders\u2019 optimism.<\/p>\n

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GBPCAD Makes A Bullish Attempt<\/strong><\/h2>\n

The British pound could be the mover and shaker next week as the UK will officially leave the European Union on Friday. The EU parliament is set to ratify the withdrawal agreement, after which Britain will enter an 11-month-long transition period. The BOE\u2019s inflation report and rate decision on Thursday will certainly add up to the pound\u2019s volatility. As uncertainty around future UK-EU trade relations looms, a dovish central bank could pour cold water on the latest rally.\u00a01.6950<\/strong>\u00a0on the bullish trend line is a major support. A breakout above 1.7280 may trigger an extended rally towards December\u2019s high of\u00a01.7700<\/strong>.<\/p>\n

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Brent Crude Drops Towards November\u2019s Lows<\/strong><\/h2>\n

Oil markets have been rattled<\/a>\u00a0by latest developments in the coronavirus outbreak in China. As Asia celebrates the Lunar New Year, the timing could not be worse. While Chinese authorities rush to contain the crisis, markets expect widespread travel restriction in the country, which may bring adverse impacts to the region\u2019s economic activity. A reduction in oil demand could further depress the price in the coming weeks. The crude is looking for support at\u00a060.40<\/strong>. Should it fail to bounce back, 58 could be the next target.<\/p>\n

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By <\/strong>Orbex<\/strong><\/a><\/p>

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By Orbex Trade of the week USDCHF Makes A Comeback The US dollar has been holding strong against major currencies ahead of the Fed\u2019s first meeting of the year. Market participants eagerly await the central bank\u2019s policy outlook for 2020. As trade sentiment improves, most expect rates to stay low until inflation picks up. A […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-163943","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/163943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=163943"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/163943\/revisions"}],"predecessor-version":[{"id":163959,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/163943\/revisions\/163959"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=163943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=163943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=163943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}