Markets in Details: 05 February 2019

5 February, 2019

News


  • The central bank’s indicator of the trend in economic activity in Italy dropped to the weakest level since 2014, thus indicating that January remained weak.
  • Growth in the UK services sector almost ground to a halt as businesses remained cautious and were more likely to postpone new projects due to the lack of positive news on the country’s Brexit plans.

In the Spot Light

  • Markets are eagerly waiting for the delayed SOTU speech on Tuesday to see whether the President could shift his focus to other important issues apart from the wall and get his view on the trade war with China and a possible intervention in Venezuela.

Upcoming events. All times GMT.

  • 9:00 UK will release New Car Registration data and EU will release January’s Services PMI.
  • 9:30 UK will release January’s Services PMI.

Technical Analysis

  • GBP/USD has broken support at 1.3027 at around 9:00 GMT after testing momentum resistance at RSI 50. The pair has sharply weakened after this breakout and seems be going to test the 1.2946 support level, which was set about three weeks ago. All other short-term support levels have been broken. This indicates that bears are going to dominate today’s session.
  • EUR/USD is also under selling pressure on Tuesday after it got no support at 1.1426, but the RSI is not in the oversold zone yet. The next support level is 1.1413.


Source  
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