Daily Market News – February 23rd, 2016

Daily Market News – February 23rd, 2016


Hello and welcome to HiwayFX market news for February 23rd, 2016. Yesterday, the EUR/USD pair fell to the key level of 1.10 for the first time in nearly three weeks. Currently, we observing a technical correction – the pair trades near the level of 1.1040, by adding 0.1%. The Euro remains supported on the back of persistent risk-aversion and the resultant broad USD weakness. During the day, we expect a release of economy data from the US. Analysts expect a slowdown – that may support the EUR/USD pair. The resistance levels for the euro are 1.1075 and 1.1130. The support levels for the EUR/USD are following 1.0953 and 1.0898. On Monday, the British pound has crashed over 2% to its lowest level in 7 years as the market is gravely concerned about the possibility of Brexit. Currently, the GBP/USD pair trades near the level of 1.4100, by losing 0.3%. , “The pound’s weakness is a product of uncertainty of the U.K.’s ongoing membership of the union not the timing of the poll,” said David Page, a senior economist at AXA Investment Managers in London. “Weakness is likely to reflect any increased perception of the likelihood to leave and as such is likely to be a constant feature over the coming months.” Goldman Sachs Group Inc. said earlier this month “if Britain quits the European Union the pound may fall to $1.15-$1.20 — levels last seen in 1985”. HSBC said in January a forecast for a jump to $1.60 by year-end relied on the nation remaining in the 28-member group. The resistance levels for the GBP/USD are 1.4123 and 1.4171. The support levels for the pound are 1.4078 and 1.4056. The Australian dollar trades on a positive area. This morning, the AUD/USD pair trades near the mark of 0.7240 by adding 0.2%. As Bloomberg reports, “The Aussie dollar has climbed about 6% from a near seven-year low reached in January amid signs Australia’s labour market is recovering enough to allow the Reserve Bank to extend a nine-month stretch in which interest rates have remained unchanged. The Australian dollar is gaining some support from the Reserve Bank of Australia’s apparent reluctance to lower its benchmark rate from an already record low 2%, even as the swaps market is already pricing in a quarter percentage point cut over the next six months. An 18% advance this year in the price of iron ore Australia’s chief export, has underpinned the currency’s rally.” The resistance levels for the AUD/USD are 0.7250 and 0.7262. The support levels for the Australian dollar are 0.7212 and 0.7198. To get more trading ideas, like us on Facebook, Follow us on Twitter and Pinterest and subscribe to our YouTube channel. For more information on all the key financial news around the world, please visit our website www.hiwayfx.com. Thank you and have a good trading day.

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