FX168 Financial News Agency (Hong Kong) News January 6 22:30 to January 7 06:30 Summary of the foreign exchange market: The situation in the United States and Iran is still rampant and market sentiment remains cautious. Although the dollar has risen against the yen, it has gained against the Swiss Lang continues to move lower. Iran announced on Sunday that it will abandon uranium enrichment restrictions and further reduce compliance with the 2015 Iran nuclear agreement commitments, but will continue to cooperate with the United Nations nuclear watchdog. The United States has withdrawn from the agreement in 2018.
The US dollar is sometimes seen as a safe-haven asset, as most central banks around the world use the US dollar as their main reserve currency, and many global companies use the US dollar for trade, but the yen and the Swiss franc are more traditional hedging options. At the same time, the euro / dollar implied volatility indicator is relatively stable, indicating that investors have not hedged their portfolio risk by buying foreign exchange options on a large scale. In addition, the Deutsche Bank's exchange rate volatility index rose only slightly and remained close to a record low.
On the other hand, the British Parliament is about to resume and plans to start a debate on Prime Minister Johnson's Brexit agreement with the European Union. The pound rebounded against the dollar.
Analysis of major currency trends:
EUR / USD: This time period opened at 1.1195. During the time period, it fluctuated within a narrow range, and was traded around 1.1194 in the late hours. From a technical point of view, the MACD red kinetic energy column has continued to shrink, and the KDJ indicator has turned up in the overbought area, indicating that the exchange rate is expected to resume its upward trend in the short term. The initial resistance of the exchange rate is at 1.1215, the further resistance is at 1.1236, and the key resistance is at 1.1265. The initial support of the exchange rate is at 1.1166, the further support is at 1.1136, and the more critical support is at 1.1116.
GBP / USD: The period opened at 1.3146, which rose moderately during the period, and traded around 1.3174 in late trading. From a technical point of view, the MACD red kinetic energy column is moderately stretched, and the KDJ indicator turns up and re-enters the overbought area, indicating that the exchange rate can be released again in the near future. The initial resistance of the exchange rate is located at 1.3210, further resistance is located at 1.3249, and the more critical resistance is located at 1.3323. The preliminary support of the downward exchange rate is located at 1.3096, further support is located at 1.3022, and more critical support is located at 1.2983.
USD / JPY: Opened at 108.08 during this period, the growth rate has shrunk during the period, and traded around 108.34 in late trading. From a technical point of view, the MACD green kinetic energy column contracted slightly, and the KDJ indicator rose low, implying that the retreat pressure of the exchange rate has begun to weaken. The initial resistance of the exchange rate is at 108.64, the further resistance is at 108.95, and the more critical resistance is at 109.39. The preliminary support of the downward price of the exchange rate is at 107.89, the further support is at 107.45, and the more critical support is at 107.15.