Forex Daily Analysis : January 25, 2021

The daily forex analysis of January 25, 2021 will discuss the poor release of UK economic data at the end of last week has made the Pound Sterling weaker against the US Dollar. Where the data is data on manufacturing activity in the UK. The weakening of the pound sterling is also a result of the high number of new cases of the Covid-19 virus. However, in trading on Monday (January 25, 2021) in the Asian session, it is expected to move to strengthen/rise. British Prime Minister "Boris Johnson" also said on Friday last week, that there is clear evidence that a new variant of Covid-19 that has been discovered at the end of 2020 can be linked to higher death rates. Meanwhile, the US Dollar could not withstand its further strengthening against other currencies, the impact of negative economic data from Europe and new concerns from market participants about the existence of the latest type of coronavirus, thus supporting investor demand for safe-haven currencies. The weakening of the Greenback is due to the 10-year bond yield is only temporary, with interest rate hikes expected to still not be carried out by the US central bank due to the stimulus policy of the Covid-19 relief package for a long period of time. The weakening of the US dollar depends on inflation data, the state of the economy and the Federal Reserve on the economic calendar. The FOMC (Federal Open Market Committee), is expected to provide a more optimistic view on the condition of the American economy after the launch of the fiscal stimulus package to overcome economic conditions due to the Covid-19 pandemic. The U.S. economy is expected to show strong growth only in the fourth quarter, after the stimulus relief that is expected to fuel hopes "for a quick recovery and support the strengthening of the dollar". On the one hand, the Greenback is likely to reverse the trend lower, as the treasury yield for tenors is between 2 - 10. These two time periods are one of the measuring tools to assess the declining health of the American economy.

Forex Daily Analysis Predictions

Today's FOREX prediction on the GBPUSD pair is expected to strengthen/rise and the recommended OP (Open Position) is BUY at the level of 1.37100. With a Target Profit (TP) of 10 - 20 points and a Stop loss (SL) of 5 - 10 points. This the analysis of January 25, 2021. Keep Money Management and Risk Management first in your trading. Visit GIC Indonesia to get information about the world of trading. You can also join us in the GIC Trade Telegram Community and GIC Trade Telegram Channel. Don't forget to check out the GIC Indonesia Youtube account which is full of a lot of information, and follow our Instagram account to get information about various interesting webinars that you can participate in.