EUROPEAN session review: Pound fell after Carney’s comments

Data released: 

09:30 GMT UK BBA Mortgage Approvals (Dec) 46.5K 47.2K 45.4K 

The pound fell sharply after BoE governor Carney’s commens. He said that sterling appreciation will hamper export growth. He noted tightening will be only gradual and MPC will look at range of options to update guidance in February QIR. 

EURO 

In the absence of major economic indicators scheduled for today, focus now turns to central bankers' speeches at the World Economic Forum, including the ECB President Draghi. 

EUR/USD trades near $1.3670. Above session highs resistance comes at $1.3720 and $1.3820 (Dec 30 highs). Minor support comes at $1.3680 (recent lows), $1.3620 (yesterday’s hourly lows). Below $1.3500 losses may widen to $1.3400 (Nov 21 lows). 

POUND 

The pair dropped afer Carney’s speech and stays atsession minimums. 

Data released showed, the UK BBA Mortgage Approvals rose to 46.5K in December, following 45.4K registered the previous month. Analysts projected an increase to 47.2K. 

GBP/USD fell to $1.6490 and then retreated to $1.6520. Now resistance comes at $1.6675/80 (channel line from Jan 10), then - at $1.6740/60. Minor support comes at $1.648, below - near $1.6400. 

YEN 

The yen headed for its biggest weekly advance since September as increased scrutiny of credit risks in China’s coal-mining industry supported demand for Japanese assets as a haven. 

USD/JPY remains under pressure and trades at Y102.60. Below losses may extend to Y102.20 (Dec 11 lows). Minor resistance is around Asian highs on Y103.60, then - at Y104.90/00 (Jan 16 highs). 

DATA AHEAD: 

Canada reports CPI data for December at 13:30 GMT.

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