Today the focus is on Bitcoin investors, Oil making a jump, and continued Brexit woes.
Calendar
10:00 UTC
The German ZEW Economic Sentiment report will be released. Forecast: 59.6. If the results are lower than expected, it could be taken as a negative impulse for the EUR.
Assets to trade: GBP/EUR, GBP/USD, GBP/JPY
News
Bitcoin stalled just short of the $50,000 mark on Monday and other cryptocurrencies slipped, as investors took profit from a record-breaking rally driven by a worldwide shift in investor and public attitudes towards digital assets. Affects Bitcoin
New post-Brexit trade restrictions have pushed up the cost of parts and raw materials for two-thirds of small British manufacturers surveyed last month, and a majority reported some level of disruption. Affects GBP
Japan’s economy expanded more than expected in the fourth quarter, extending the recovery from its worst postwar recession thanks to a rebound in overseas demand that boosted exports and capital spending. Affects JPY
Oil joined equity markets in pushing higher, reaching its highest level since January 2020 on hopes U.S. stimulus will boost the economy and fuel demand. Affects Brent
Google has agreed to pay a fine of 1.1 million euros ($1.3 million) after French authorities concluded the search engine displayed “misleading” rankings for French hotels. Affects Google
Technical Analysis
EUR/GBP
Brexit woes continue to haunt the British economy and do not look to be ending soon. While the eurozone has not shown many signs of economic recovery in the midst of their prolonged lockdowns. As the economic divide strengthens and both economies feel the pressure the smaller British economy will fare better than the bloc.
The pair has shown a strong downward trend and has shown a Three Outside Down pattern indicating a continuation of the trend.
Silver
Approaching its resistance level around 27.71, the upward trend may be strong enough to push it past the line.
EUR/CAD
This pair will likely test and reflect off of its support level around 1.510.
