Forex trading plan for January 20
By Kira Iukhtenko
EUR/USD consolidates around the 1.0900 mark. Market volatility remains subdued these days, but we expect the pair to break out of the current range in the coming sessions. The forthcoming ECB meeting on Thursday is a negative factor for the euro. Get ready to SELL the pair when the selling momentum increases ahead of the meeting. Major support lies at 1.0800.
GBP/USD remains a SELL as well. The BOE governor Marc Carney killed the optimism by saying that “it’s not the right moment” to discuss a rate hike in the current market conditions. Watch the UK labor market data on Wednesday. Average earnings growth are expected to have slowed down. If confirmed, the news will likely pressure the UK currency. Next support to watch is 1.4100.
USD/CAD will be influenced by the Bank of Canada decision tomorrow. According to the consensus forecast, the regulator will cut interest rates to 0.25%. That is why we expect the pair to grow after the current short-term consolidation.