Jan. 27: MARKET OVERVIEW
EUR/USD is holding above support at 1.1225 (23.6% of the decline after the ECB announced QE). The single currency is steady on Tuesday after having bounced off an 11-year low on Monday as investors decided to take profits on extremely bearish positions. In Greece the leftist Syriza has formed a government with the rightwing Independent Greeks party. Traders will be watching for more news from the country.
USD/JPY remains limited on the upside by the top of the Ichimoku Cloud in the 118.60/90 area. A member of Japan’s Council on Economic and Fiscal Policy said that the yen is very low and will appreciate.
The US Federal Reserve starts a 2-day policy meeting today, the results of which will be announced on Wednesday. The market players wonder if the Fed takes a more dovish stance after the central banks in the euro area, Canada and Switzerland eased their policy.
Watch for the following important events today: