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#SaxoStrats
Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Article / 12 January 2018 at 15:43 GMT

FX Board: USD struggles to new lows vs EUR and GBP —#SaxoStrats

Head of FX Strategy / Saxo Bank
Denmark
50-dollar bill
 The US dollar struggled, and the euro popped higher. Image: Shutterstock


Please see today's FX Board PDF attached to this post for the latest Notes of Interest, Trend and Trend Heat readings, as well as a few thoughts on key chart developments below.

Charts:

EURUSD

The key developments today were a continuation of the euro rally and a late GBP rally on potentially positive Brexit news (see GBPUSD chart below). With the EURUSD break to new cycle highs above 1.2092, that area plus a bit of slippage back towards 1.2050 becomes the important pivot zone that must be maintained to keep the focus higher. The next extension target is perhaps 1.2325, and the 1.2500 round level might attract if the action rises higher still in the weeks ahead.
eurusd
Source: Saxo Bank 

GBPUSD

GBPUSD launched a strong rally on general USD weakness and then later on the potentially positive Brexit developments, and the clearing of the 1.3650 area sets the focus higher still as long as the zone to about 1.3600 is maintained next week. The pre-Brexit low at 1.3835 is not terribly far away now if the rally endures.
gbpusd
Source: Saxo Bank


— Edited by John Acher 

John J Hardy is head of FX strategy at Saxo Bank

 
Download document

FX Board for Friday, January 12, 2018

12 January
seas seas
EURUSD closing right at 50% fib.

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