Sample Category Title

Notes/Observations

• Risk appetite on the back burner after Trump, Kim failed to make any agreement at the Hanoi summit, meeting cut short by Trump; Cautious market sentiment also aided by uncertainty over the progress in U.S.-China trade talks
• China's economic growth continued to slow despite stimulus efforts (both China and Japan saw weaker economic releases during the Asian session)
• BOJ saw its 1st change in program in monthly bond buying program in 3 months; to purchase less bonds in 5-10-year range but with less frequency as yields declined to a 2-year low
• European inflation data for Feb showing small steps of improvement and likely add the ECB confidence of achieving target down the road (Various German States, France, Spain, Portugal, Italy reported).

Asia:

• Japan Jan Preliminary Industrial Production registers its largest decline since Jan 2018); M/M: -3.7% v -2.5%e; Y/Y: 0.0% v 1.3%e v -1.9% prior
• Japan Jan Preliminary Retail Sales M/M: -0.8%e v +0.9% prior; Retail Trade Y/Y: 1.4%e v 1.3% prior
• China Feb Official Manufacturing PMI: 49.2 v 49.4e (3rd straight contraction)
• Bank of Korea (BoK) left Repo Rate unchanged at 1.75% (as expected)
• BOJ Board Member Suzuki reiterated that was important to maintain powerful monetary easing; BOJ did not intend to raise interest rate levels at this time. Would act swiftly through market operations if yields rose rapidly. Must be ready if momentum for hitting price goal was threatened. Saw no need to ease policy currently as now momentum was sustained; BoJ had various tools if it were to ease

Europe:

• UK Parliament approved Amendment calling for vote on whether to rule out 'no deal' and extend Article 50; approved Amendment affirming Citizen's Rights even in a 'no deal' Brexit
• ECB's Villeroy (France) stated that still believes normalization of monetary policy is desirable; if current downturn happens to be more durable, then ECB will adapt

Americas:

• Trade Rep Lighthizer congressional testimony noted that it was too early to predict the outcome US-China trade talks. Currently intense negotiations with China and was making real progress. Believed that US would have an enforceable trade deal with the enforcement process being specific

Macro

• (FR) France: Q4 GDP confirmed at 0.3% q/q leaving the annual rate at 0.9% y/y. Consumption figures for January were stronger rebounding 1.2% m/m from the -1.5% m/m in December last year, when the yellow vest protests and changing consumption patterns weighed on numbers. Suggesting some economic activity in the domestic economy, even as the global backdrop is overshadowed by ongoing uncertainty.
• (US) United States: Fed Chairman Powell reiterated the Fed is in a position to stop the runoff of reserves later this year. The level of demand for liabilities, especially reserves and currency, is so much higher than pre-crisis, estimated about 16% to 17% of GDP. Even after ending the runoff, however, holdings could still be above the demand for reserves. Powell also repeated prior indications elsewhere that the Fed wants to go back to holding just Treasuries in the portfolio.
• (UK) United Kingdom: A vote in the UK's House of Commons yesterday came down overwhelming - 502 to 20 - in favor of a measure to legislate for the option of delaying Brexit, backing up the prime minister's concession to hold a vote on delaying Brexit should her Withdrawal Agreement, and a subsequent vote on whether to leave the EU without a deal, fail. Parliament had already strongly supported, earlier in the month, a motion rejecting a no-deal Brexit. Brussels seems set on insisting on a long, 21 month extension as a means to avoid the risk of perpetual three-month delays and to buy time to work on solutions on the Irish border issue. This won't be popular move.

SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM

Equities

• Indices [Stoxx600 -0.36% at 371.24, FTSE -0.81% at 7,049.50, DAX -0.14% at 11,470.66, CAC-40 -0.10% at 5,220.27, IBEX-35 -0.14% at 9,198.45, FTSE MIB +0.03% at 20,505.50, SMI -0.57% at 9,366.70, S&P 500 Futures -0.33%]
• Market Focal Points/Key Themes: Equities European Indices trades mainly lower tracking mainly lower Indices in Asia overnight and lower US Index futures. Indices have been under pressure as US President Trump and Kim failed to reach an agreement at the Hanoi summit with the meeting cut short. On a busy morning for corporate earnings shares of Zalando trades almost 20% higher after a rise in profits and upbeat guidance, with AB Inbev another notable riser despite mixed results, as strong EBITDA guidance helps lift the stock. Other notable earners include Geox, Kion Group, Duerr, Bureau Veritas, Carrefour, Rentokil among the names higher on earnings. Mean shares of Aston Martin Lagonada declines over 15% following a full year loss on geopolitical uncertainties; Rolls Royce also declines after earnings and withdrawal from competition to power Boeing's new Mid Size Airplane; ABB falls in Switzerland after earnings and cautious commentary. Other notable decliners include Adecco, RSA Insurance, Engie and Telford homes among others. In other news Thin Film falls in Norway after termination discussion with Tradeshift Holdings and Vivendi rises on reports of interest for its stake in Universal Music Group. Looking ahead notable earners include JD.com, Nielson Holdings, Crocs, PG&E and JC Penny among others.
• Consumer discretionary: Carrefour [CA.FR] +1.5% (earnings), IAG [IAG.UK] +2% (earnings; special dividend), Anheuser-Busch InBev [ABI.BE] +4.5% (earnings), Zalando [ZAL.DE] +17.5% (earnings), Adecco [ADEN.CH] -5% (earnings), Bakkavor [BAKK.UK] -13% (earnings)
• Consumer staples: British American Tobacco [BATS.UK] -3% (earnings; Finance Director to reitre)
• Energy: Engie [ENGI.FR] -3% (earnings), Repsol [REP.ES] -1% (earnings)
• Healthcare: UCB [UCB.BE] -4% (earnings)
• Industrials: Aston Martin [AML.UK] -12.5% (earnings), Rolls Royce [RR.UK] -3.5% (earnings; announcement), Dassault Aviation [AM.FR] +4.5% (earnings), ABB Ltd [ABBN.CH] -1.5% (earnings), Telford Homes [TEF.UK] -16.5% (profit warning), Subsea 7 [SUBC.NO] +3.5% (earnings; buyback; special dividend)

Speakers

• White House: Hanoi Summit ends, no agreement reached; US and North Korea teams to meet in future
• President Trump post Hanoi Summit press conference noted that he had good talks with NK Leader Kim but was not appropriate to sign a deal at this time but the relationship was moving along. North Korea was not willing to give what the US wanted in order to lift the sanctions. NK Leader Kim promised not to do nuclear weapons testing and no more rockets. Talks fell apart as North Korea was looking for all sanctions to be lifted
• Ireland PM Varadkar: Brexit extension is better than no-deal outcome. Potential extension could go into Jun/July period
• Pakistan Foreign Min Qureshi: Ready to consider return of Indian pilot if it helps to diffuse tensions
• India official: There would be no negotiations with Pakistan over the pilot's return; Pakistan needed to create conditions for talks. Pakistan creating ‘war hysteria'

Currencies/Fixed Income

• Some risk aversion flow in session after Trump, Kim fail to make any agreement at their Hanoi summit, meeting was cut short by Trump which saw the CHF and JPY currencies benefit in terms of price action
• GBP/USD moved off 7-month highs as some of the recent drama in the Brexit process dissipated for the time being. The GBP/USD previously tested 1.33.50 area as a no-deal Brexit was viewed as less likely and that Britain's departure from the European Union would be delayed.
• Plethora of European inflation data in session ahead of next week ECB meeting European inflation data for Feb showing small steps of improvement and likely add the ECB confidence of achieving target down the road (Various German States, France, Spain, Portugal, Italy reported). EUR/USD was higher by 0.2% but unable to climb back above the 1.14 level.
• Stronger Sweden Q4 GDP data helped to propel the SEK currency stronger. EUR/SEK was lower by 0.6% to test 10.47 area

Economic Data

• (ZA) South Africa Jan M3 Money Supply Y/Y: 5.1% v 5.7%e; Private Sector Credit Y/Y: 6.5% v 5.6%e
• (CH) Swiss Q4 GDP Q/Q: 0.2% v 0.4%e; Y/Y: 1.4% v 1.7%e
• (DE) Germany Jan Import Price Index M/M: -0.2% v +0.2%e; Y/Y: 0.8% v 1.2%e
• (UK) Feb Nationwide House Price Index M/M: -0.1% v 0.0%e; Y/Y: 0.4% v 0.3%e
• (NO) Norway Jan Credit Indicator Growth Y/Y: 5.7% v 5.4%e
• (FI) Finland Q4 GDP Q/Q: 0.7% v 0.4% prior; Y/Y: 2.2% v 2.1% prior
• (FI) Finland Jan House Price Index M/M: -2.6% v 0.0% prior; Y/Y: -0.6% v +1.2% prior
• (FI) Finland Dec Final Trade Balance: -€0.4B v -€0.4B prelim
• (DK) Denmark Q4 Preliminary GDP Q/Q: 0.7% v 0.4% prior; Y/Y: 2.2% v 2.3% prior
• (DK) Denmark Jan Gross Unemployment Rate: 3.7% v 3.7% prior; Unemployment Rate (Seasonally Adj): 3.0% v 3.1% prior
• (TR) Turkey Jan Trade Balance: -$2.5B v -$2.5Be
• (TH) Thailand Jan Current Account Balance: $2.3B v $3.0Be; Overall Balance of Payments (BOP): $B v -$0.2B prior; Trade Account Balance: $0.1B v $2.5B prior; Exports Y/Y: -4.7% v -1.6% prior; Imports Y/Y: +4.2% v -6.7% prior
• (FR) France Q4 Preliminary GDP Q/Q: 0.3% v 0.3%; Y/Y: 0.9% v 0.9%e
• (FR) France Feb Preliminary CPI M/M: 0.0% v 0.4%e; Y/Y: 1.3% v 1.5%e
• (FR) France Feb Preliminary CPI EU Harmonized M/M: 0.1% v 0.3%e; Y/Y: 1.5% v 1.7%e
• (FR) France Jan Consumer Spending M/M: 1.2% v 1.1%e; Y/Y: 1.0% v 0.8%e
• (FR) France Jan PPI M/M: +0.1% v -1.1% prior; Y/Y: 1.4% v 1.3% prior
• (DE) Germany Feb CPI Saxony M/M: +0.3% v -1.0% prior; Y/Y: 1.4% v 1.4% prior
• (ES) Spain Feb Preliminary CPI M/M: 0.2% v 0.3%e; Y/Y: 1.1% v 1.1%e
• (ES) Spain Feb Preliminary CPI EU Harmonized M/M: 0.2% v 0.1%e; Y/Y: 1.1% v 1.0%e
• (CH) Swiss Feb KOF Leading Indicator: 92.4 v 95.0e
• (HU) Hungary Jan PPI M/M: -0.5% v -0.4% prior; Y/Y: 3.8% v 4.7% prior
• (SE) Sweden Q4 GDP Q/Q: 1.2% v 0.6%e; Y/Y: 2.4% v 1.5%e
• (SE) Sweden Jan Retail Sales M/M: 0.8% v 1.0%e; Y/Y: 2.2% v 1.0%e
• (SE) Sweden Jan PPI M/M: % v -0.6% prior; Y/Y: % v 5.6% prior
• (SE) Sweden Dec Non-Manual Workers Wages Y/Y: 2.8% v 2.9% prior
• (DE) Germany Feb CPI Brandenburg M/M: +0.6% v -0.5% prior; Y/Y: 1.6% v 1.3% prior
• (DE) Germany Feb CPI Hesse M/M: +0.5% v -1.0% prior; Y/Y: 1.1% v 0.9% prior
• (DE) Germany Feb CPI Bavaria M/M: +0.5% v -1.0% prior; Y/Y: 1.7% v 1.7% prior
• (DE) Germany Feb CPI Baden Wuerttemberg M/M: +0.5% v -0.9% prior; Y/Y: 1.7% v 1.6% prior
• (CZ) Czech Jan M2 Money Supply Y/Y: 5.7% v 5.5% prior
• (NO) Norway Central Bank (Norges) Mar Bank Daily FX Purchases (NOK): -600M v -450M prior
• (IS) Iceland Jan Final Trade Balance (ISK): 7.0B v 4.6B prelim
• (PL) Poland Q4 Final GDP M/M: 0.5% v 0.5% prelim; Y/Y: 4.9% v 4.9% prelim
• (ES) Spain Dec Current Account Balance: €4.7B v €1.8B prior
• (DE) Germany CPI North Rhine Westphalia M/M: +0.5% v -0.7% prior; Y/Y: 1.6% v 1.5% prior
• (PL) Portugal Feb Preliminary CPI M/M: -0.2% v -1.2% prior; Y/Y: 0.9% v 0.5% prior
• (PL) Portugal Feb Preliminary CPI EU Harmonized M/M: -0.3% v -1.3% prior; Y/Y: 0.9% v 0.6% prior
• (ZA) South Africa Jan PPI M/M: -0.8% v +0.1%e; Y/Y: 4.1% v 5.0%e
• (SL) Sri Lanka Feb CPI Y/Y: 4.0% v 3.7% prior
• (IT) Italy Feb Preliminary CPI (NIC includes tobacco) M/M: 0.2% v 0.2%e; Y/Y: 1.1% v 1.1%e
• (IT) Italy Feb Preliminary CPI EU Harmonized M/M: -0.2% v -0.2%e; Y/Y: 1.2% v 1.2%e
• (GR) Greece Dec Retail Sales Value Y/Y: 0.7% v 2.9% prior; Retail Sales Volume Y/Y: 0.5% v 3.7% prior
• (GR) Greece Jan PPI Y/Y: 0.0% v -0.1% prior

Fixed Income Issuance

• None seen

Looking Ahead

• 05:30 (HU) Hungary Debt Agency (AKK) to sell bonds (3 tranches)
• 06:00 (PL) Portugal Q4 Final GDP Q/Q: No est v 0.4% prelim; Y/Y: No est v 1.7% prelim
• 06:00 (IE) Ireland Jan Retail Sales Volume M/M: No est v -0.4% prior; Y/Y: No est v 3.7% prior
• 06:00 (CA) Canada Feb CFIB Business Barometer: No est v 56.1 prior
• 06:30 (IN) India Jan Eight Infrastructure (Key) Industries: no est v 2.6% prior
• 06:45 (US) Daily Libor Fixing
• 07:00 (IN) India Q4 GDP Y/Y: 6.7%e v 7.1% prior; GDP 2019 Annual Estimate Y/Y: 7.2%e v 7.2% prior; GVA Y/Y: 6.5%e v 6.9% prior
• 07:00 (ZA) South Africa Jan Trade Balance (ZAR): -14.5Be v +17.2B prior
• 07:00 (ZA) South Africa Jan Budget Budget (ZAR): No est v 14.5B prior
• 07:00 (BR) Brazil Q4 GDP Q/Q: 0.2%e v 0.8% prior; Y/Y: 1.4%e v 1.3% prior; GDP 4Qtrs Accumulated: 1.2%e v 1.4% prior
• 07:00 (CL) Chile Jan Unemployment Rate: 6.8%e v 6.7% prior
• 07:00 (CL) Chile Jan Industrial Production Y/Y: 2.0%e v 1.0% prior; Manufacturing Production Y/Y: 0.3%e v 0.8% prior; Total Copper Production: No est v 560.9K tons prior
• 08:00 (DE) Germany Feb Preliminary CPI M/M: +0.4%e v -0.8% prior; Y/Y: 1.5%e v 1.4% prior
• 08:00 (DE) Germany Feb Preliminary CPI EU Harmonized M/M: +0.6%e v -1.0% prior; Y/Y: 1.7%e v 1.7% prior
• 08:00 (RU) Russia Gold and Forex Reserve w/e Feb 22nd: No est v $474.6B prior
• 08:00 (UK) Baltic Dry Bulk Index
• 08:00 (US) Fed's Clarida (moderate, voter) remarks at Economic Policy Conference
• 08:30 (US) Q4 Advance GDP Annualized Q/Q: 2.3%e v 3.4% prior; Personal Consumption: 3.0%e v 3.5% prior
• 08:30 (US) Q4 Advance GDP Price Index : 1.7%e v 1.8% prior; Core PCE Q/Q: 1.6%e v 1.6% prior
• 08:30 (US) Initial Jobless Claims: 220Ke v 216K prior; Continuing Claims: 1.74Me v 1.725M prior
• 08:30 (CA) Canada Q4 Current Account Balance: -$13.3Be v -$10.3B prior
• 08:30 (CA) Canada Jan Industrial Product Price M/M: +0.1%e v -0.7% prior; Raw Materials Price Index M/M: No est v 3.8% prior
• 08:30 (BR) Brazil Jan Primary Budget Balance (BRL): +35.1Be v -41.1B prior; Nominal Budget Balance: -2.2Be v -68.0B prior; Net Debt to GDP Ratio: 54.0%e v 53.8% prior
• 08:30 (US) Weekly USDA Net Export Sales
• 08:50 (US) Fed's Bostic (dove, non-voter)
• 09:00 (BE) Belgium Q4 Final GDP Q/Q: No est v 0.3% prelim; Y/Y: No est v 1.2% prelim
• 09:00 (MX) Mexico Dec Gold Production: No est v 6.4K kilograms prior; Silver Production: No est v 329.9K kilograms prior; Copper Production: No est v 39.8K tons prior
• 09:45 (US) Feb Chicago Purchasing Manager: 57.5e v 56.7 prior
• 10:00 (MX) Mexico Jan Net Outstanding Loans (MXN): No est v 4.453T prior
• 10:00 (CO) Colombia Q4 GDP (Seasonally Adj) Y/Y: 2.9%e v 2.5% prior (revised from 2.6%); GDP (unadj) Y/Y: 2.8%e v 2.7% prior; Overall 2018 GDP Y/Y: No est v 1.8% prior
• 10:00 (CO) Colombia Jan National Unemployment Rate: No est v 9.7% prior; Urban Unemployment Rate: 13.7%e v 10.7% prior
• 10:30 (US) Weekly EIA Natural Gas Storage Inventories
• 11:00 (US) Feb Kansas City Fed Manufacturing Activity: 6e v 5 prior
• 11:00 (US) Fed's Harker (hawk, non-voter)
• 11:30 (US) Treasury to sell 4-Week and 8-Week Bills
• 13:00 (BR) Brazil Jan Total Formal Job Creation: +86.0Ke v -334.5K prior
• 13:00 (US) Fed's Kaplan (dove, non-voter) in TX
• 14:00 (CO) Colombia Dec Economic Activity Index (Monthly GDP) Y/Y: 3.0%e v 2.2% prior

EUR/USD

Current level - 1.1388

The bias is positive, with a risk of a rise towards 1.1450 area. The latter could cap the upside, for a reversal and downswing towards 1.1200 area.

USD/JPY

Current level - 110.72

The return above 110.60 has neutralized the negative bias and the intraday outlook here is neutral.

GBP/USD

Current level - 1.3286

The uptrend remains intact above 1.3230 support, for a rise towards 1.3450 zone.

The Australian Dollar depreciated about 71 base points against the US Dollar on Wednesday. The decline was stopped by a support level formed by the weekly PP at 0.7135 during the previous trading session.

The currency pair was stranded between the 200-hour simple moving average at 0.7145 and the weekly pivot point at 0.7135 during the first half of Thursday's trading session.

A breakout from this support and resistance levels is likely to occur within this session. However, technical indicators are neutral on both the smaller and the larger time frames.

The US Dollar bounced off the lower boundary of an ascending channel pattern at 1.3120 on Wednesday. The exchange rate tested a resistance cluster at 1.3171 during the beginning of the European trading session on Thursday.

As for the near future, it is likely that the US Dollar will continue to gain strength against its Canadian peers during the following trading session. The potential upside target will be at 1.3220.

Although, technical indicators suggest that a possible reversal from the resistance cluster at 1.3171 could be expected within this session.

The New Zealand Dollar depreciated about 66 base points against the US Dollar on Wednesday. The decline was stopped by a support level formed by the weekly pivot point at 0.6816.

If this support level continues to hold within this session, buyers could push the exchange rate towards the weekly R1 at 0.6911.

On the other hand, if the currency exchange rate passes the weekly PP at 0.6834, the next target for bearish traders will be at a support level set by the weekly S1 at 0.6775 in the nearest future.

The Australian Dollar appreciated about 80 base points against the Japanese Yen on Wednesday. The currency pair tested February 25 swing high of 126.34 during yesterday's trading session.

The exchange rate is currently testing a support level formed by the 50-hour simple moving average at 125.98.

If this support level holds, the currency exchange rate will continue its movement in the medium-term ascending channel within this session.

However, if the EUR/JPY pair passes the 50-hour SMA, a potential downside breakout could be expected during the following trading session.

The Australian dollar consolidates after strong sell-off previous day, as renewed concerns over US/China trade talks soured sentiment.

Wednesday's bearish outside day weighs, but fresh weakness found footstep at 50% retracement of 0.7054/0.7207 (0.7130).

Momentum remains strong on daily chart, but the pair lacks direction as signals are still mixed.

Firm break below 0.7150 would generate initial bearish signal for extension towards Fibo supports at 0.7112/0.7090 (Fibo 61.8% and 76.4% respectively) and would expose higher low at 0.7070 (21 Feb).

Bullish scenario requires initial signal from lift above broken Fibo barrier at 0.7149 (38.2% of 0.7054/0.7207) and extension above 100SMA (0.7163) to confirm bulls are back to play for renewed attack at pivotal 0.7203 barrier (Fibo 61.8% of 0.7295/0.7054).

Res: 0.7146, 0.7163, 0.7203, 0.7238
Sup: 0.7130, 0.7112, 0.7090, 0.7070

The pair returned to directionless mode after short-lived dip to 110.35 on Wednesday, inspired by increased safe-haven demand, which started to fade.

Dip was contained by rising 20SMA, keeping near-term price action congested between 20 and 200SMA's.

Daily momentum in sideways mode and mixed setup of MA's lacks clearer near-term direction signal.

The pair would look for performance of other instruments, data and geopolitical situation, to get fresh signals.

Eventual break above 200SMA (111.30) and converging 100SMA (111.41) would generate strong bullish signal, while extension below 20SMA (110.41) and 110.08/00 (55SMA/psychological support) would weaken near-term tone and risk further weakness.

Res: 111.07, 111.30, 111.41, 111.55
Sup: 110.72, 110.41, 110.00, 109.40

A negative vibe swept across financial markets this morning after the US-North Korea summit ended abruptly and with no agreement reached.

With US President Donald Trump stating that the US is unwilling to lift sanctions and North Korea “unprepared” to meet his demands, the chances of a breakthrough deal happening anytime soon are unlikely. However, Trump and Kim walking away from the negotiating table doesn't mean bilateral relations between the two have taken a turn for the worse. With the summit ending amicably, this could open the doors for further talks in the future.

The final trading week of February has been incredibly eventful as investors tussled with the various fundamental theme drivers impacting global equities and currency &commodity markets. Risk-on sentiment got a boost at the start of the week amid signs that a US-China trade deal is drawing closer and that UK Prime Minister Theresa May is stepping away from the 29 March hard deadline for Brexit. Meanwhile, Fed Chair Jerome Powell continues to reiterate the Fed's “patience” policy mantra before Congress and markets.

Such developments have contributed to the Dollar's return to the 96-mark after a rough and rocky ride so far in 2019, while the Pound reached its strongest level since July last year. Major stock indices around the world are seeing double-digit gains year-to-date. Gold is poised to end a run of four consecutive months of gains, coming off $1,340 - its highest level since April 2018.

However, with concerns over plateauing global growth among many other geopolitical risks straining investor confidence, it must be said that we're not out of the woods just yet. Amid these developments, the fundamental questions remain; will the US and China strike a new trade deal that mutually appeases the world's two largest economies? When will the UK divorce itself from the European Union, and how? Should there be a return on any of these fronts in the coming weeks, risk aversion will be seen returning with a vengeance.

Moving forward, investors' risk appetite will continue to be tested as they also digest other risks, such as geopolitical tensions between India and Pakistan, China's Manufacturing PMI contracting further in February and political uncertainty in Washington. Should these tail risks become more pronounced, this may add another layer of concern to the markets.

To be sure, it remains that the overall base case for 2019 revolves around limited gains for the Greenback, the Fed standing pat on US interest rates and moderating global economic growth. The Pound is expected to remain vulnerable to Brexit developments, while Asian currencies may be affected by China's economic slowdown. Overall, investors may be rewarded if they adopt a “cautiously optimistic” approach in the near-term.

Will the course of US-China trade relations or the UK's relationship with the EU be permanently altered in March 2019?

Brace yourselves for a potentially volatile month ahead.

The EUR/USD did not manage to pass the resistance levels at the 1.1400 mark. Instead the rate retreated down to the lower trend line of the ascending channel pattern.

On Thursday morning the rate had bounced off the support of the trend line and had found additional support in the weekly R1 at 1.1380. Due to that reason it was assumed that the rate will make another attempt to pass the 1.1400 level.

On the other hand the rate might trade sideways and that way pass the support of the ascending channel. That way the rate would face the various support on the hourly chart one by one and decline below them.