- GBP – BoE decides to maintain the interest rate unchanged at 0.5 percent.
- USOIL – Falls in a session of high volatility in the markets.
- USDCAD – Waiting for employment data release.
Main currencies daily performance
GBP – BoE decides to maintain the interest rate unchanged at 0.5 percent
Bank of England’s (BoE) Monetary Policy Committee (MPC) members decided unanimously to maintain the interest rate unchanged at 0.5 percent. MPC members see that the UK economy will grow “only modestly over the forecasted period.”
Inflation is expected to remain around 3% in the short term, attributed mainly to oil prices. Regarding the possibility of an increase in the interest rate, BoE Governor Mark Carney pointed out that the interest rate increase is likely to be realised soon. The BoE suggested as a possibility that it might be during the month of May.
Once the decision of the BoE was published, the Cable climbed up to 1.40 (resistance level R2) from where it made a reversal movement towards the pivot point. Structurally, in the short-term, we expect more falls towards the area of 1.355 – 1.345.
GBP-USD hourly Chart ( Click image to enlarge)
USOIL – Falls in a session of high volatility in the markets.
Oil has continued its downtrend. In a day marked by high volatility, crude oil closed with losses of 2.03%. In the United States stock market, the companies correlated with oil, Exxon <XOM> and Chevron <CVX> registered declines of -1.62% and -2.13% respectively.
In the currency market, the Canadian dollar fell -0.24%.
In our short-term view, we maintain a bearish bias down to the $60 – $59 zone, from which the crude could experience a technical rebound.
OIL WTI hourly Chart ( Click image to enlarge)
USDCAD – Waiting for employment data release.
The last emission of macroeconomic data of the week comes from the Canadian Dollar, where the unemployment rate will be released. The consensus of the analysts forecasts 5.8%, while the change of employment for the month of January should register a setback around -2K.
Our technical vision is that the Loonie could make a limited upward movement to the confluence zone between the weekly resistance level R3 and the Fibonacci level F(61.8) 1.2663. From there, it could initiate a bearish move with a target profit in the weekly pivot 1.2326. The invalidation level is 1.2808.
USD-CAD 4-hour Chart ( Click image to enlarge)