January 27, 2023 09:55 GMT
EUR Inside Shallow Corrective Pullback, Bias Remains Higher
- JPY trades firmer, gaining against all others in G10 after a spell of interest in early Asia-Pac hours. EUR/JPY's pullback, however, has been shallow as the single currency undergoes a shallow corrective pullback. For now, EUR/USD remains in a broader uptrend, with Thursday's 1.0929 print highlighting the upside bias. Key short-term support levels remain intact and note that moving average studies continue to highlight positive market sentiment. The next objective is 1.0954, the Apr 11 2022 high.
- At the other end of the table, GBP is softer amid a minor pullback in rate hike expectations for the front-end of the UK curve. GBP/USD remains above yesterday's lows of 1.2345, a break below which opens 1.2264/59 the Jan 24 Low and the 20-day EMA respectively.
- A softer SEK puts NOK/SEK closer to the week's best levels, but the cross is running into congestion at 1.0451 - 55. The moves follow a higher than expected Swedish unemployment rate for December, which ticked higher to 7.5% from 7.2% previously.
- Focus Friday rests on US personal income/spending data as well as the December PCE release. Pending home sales and final Michigan sentiment data round off the week.
- The central bank speaker slate is light, with ECB's Villeroy the sole speaker - although he's expected to comment on climate rather than monetary policy.