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GBP/USD stays mildly positive while picking up bids above 1.3600,  remaining poised for additional gains amid favourable technicals.  200-HMA and bullish crossover keep the buyers hopeful. 100-HMA at 1.3625  is on sight amid bullish RSI. Brexit deal reaches the House of Commons  for revoting, UK-China tussle intensify. UK NHS Chairwoman fears the  pandemic will throw unpredicted problems. The incoming US Treasury  Secretary Janet Yellen’s speech, Brexit chatters and virus updates will  be the key amid light calendar. EUR/USD was last seen trading at 1.2110,  adding 0.30% on the day. The spot hit a daily high of 1.2119 and a  day’s low at 1.2074. Dollar Index was down 0.2% at 90.547, after edging  as high as 90.94 overnight for the first time since Dec. 21, although  trading was subdued with U.S. markets on holiday. USD/JPY was up 0.4% at  104.06 while the risk-sensitive AUD/USD was up 0.4% at 0.7711.

GBP/USD is below 1.36. While bears push sterling to oversold conditions,  Britain's rapid vaccination campaign and optimism about the Biden era  may prompt a bounce. Support below 1.35 awaits at 1.3455, the 2020  trough, followed by 1.33, a stepping stone on the way up in late  December. Some resistance is at 1.3545, which was a cushion early in the  year. It is followed by 1.3610, a support line from last week.     EUR/USD loses further momentum and drops to 1.2060. The better tone in  the dollar keeps weighing on the pair. ECB’s Lagarde participates in the  EuroGroup meeting.  The upside momentum in EUR/USD run out of steam in  the 1.2350 area earlier in the month. The subsequent corrective downside  breached already the 1.2100 mark and appears to still have further legs  to go. Despite the corrective downside, the outlook for EUR/USD remains  constructive and appears supported by prospects of a strong recovery in  the region (and abroad), which is in turn underpinned by extra fiscal  stimulus by the Fed and the ECB. In addition, real interest rates  continue to favour the euro area vs. the US, which is also another  factor supporting the EUR along with the huge long positioning in the  speculative community. The dollar index steadied after touching a  one-month high and last traded at 90.857, its highest level since Dec.  21.

GBP/USD has been hovering below 1.37 as markets digest Biden and  Powell's speeches. The UK's vaccination campaign and weak US data may  push cable above the strong 1.37 resistance. Critical resistance is at  around 1.37-1.3705, which is now a triple-top after halting the pair's  ascent in once again. Beyond 1.37, the next levels to watch are 1.3730,  1.3810, and 1.40 – all dating to 2018. Support awaits at 1.3610,  Thursday's low, followed by 1.3545 and 1.3450. EUR/USD adds to the  weekly drop near 1.2120. The offered bias around the single currency  stays unchanged for yet another session and drags EUR/USD to the 1.2120  zone on Friday. The recent downside in the par has been exacerbated by  dovish comments from ECB officials regarding the appreciation of the  exchange rate in recent weeks and its impact on the inflation. This view  was later reinforced by the ECB Accounts published on Thursday. The  dollar edged higher Friday after President-elect Joe Biden outlined his  plans for additional stimulus, but gains are likely to be limited after  Federal Reserve Chairman Jerome Powell declined to join any discussion  about reducing monetary stimulus.  The dollar index was up 0.1% at  90.267, rebounding from last week’s near three-year low. USD/JPY was  down 0.1% at 103.67, while the risk-sensitive AUD/USD was down 0.3% at  0.7753.

The GBP/USD pair has been torn between optimism about the UK vaccine  rollout and US stimulus hopes. Economists at Credit Suisse anticipate  the Bank of England will increase its assets purchases by a further  GBP150 B at its 4 February meeting, continuing a policy of fully  financing gilt issuance. But critically, and contrary to market pricing,  they do not expect the BoE to opt for negative rates, given the  potential threat this poses to bank profits and credit growth. It is  expected that the EUR/GBP and GBP/USD pairs can reach 0.87/88 and 1.40,  respectively.  The UK vaccination campaign continues at full speed,  hitting 4.52% of the population – the highest in the Western world.  Investors are looking beyond the current misery and to the future. The  faster a country inoculates its population, the quicker the economic  recovery. EUR/USD remains stuck in the 1.2150 region on Thursday. The  ECB will publish its Accounts of the December meeting. US weekly Claims,  Powell will dictate the sentiment later in the session. The U.S. Dollar  Index was down just 0.04% at 90.302, holding just above the 89.206 low  seen for the first time since March 2018 last week. USD/JPY was up 0.1%  at 104, while the risk-sensitive AUD/USD was up 0.3% at 0.7756.

The GBP/USD pair has been advancing amid bond-related dollar weakness  and BoE hawkishness but the initial surge above 1.37 may prove  short-lived despite good reasons to rise. GBP/USD continues trading in  an upwards channel and is nearing the 2021 peak of 1.3705 – also the  highest since 2018. While momentum on the 4-hour chart is positive, the  Relative Strength Index is hitting the 70 level – entering overbought  conditions. That may result in a downside correction. The UK-EU free  trade agreement (FTA) is welcome, in that it avoided a hard Brexit for  merchandise trade. However, trade friction has risen and the government  has yet to clarify its post-EU industrial strategy, which needs to be  focused on productivity. Beyond a relief rally, the FTA does not provide  a compelling reason to buy GBP now according to ANZ Bank. EUR/USD saw a  quick drop below 1.2200 on French economy is seen contracting 4% in the  fourth quarter of 2020 despite the lifting of the coronavirus lockdown  and German’s health minister indicated impossibility to lift all  restrictions in February due to the virus contagion. The dollar nursed  losses on Wednesday as a retreat in U.S. yields sapped momentum from its  recent rebound and investors cautiously resumed bets that it can resume  sliding. Benchmark 10-year Treasury yields fell more than 6 basis  points from a 10-month high hit on Tuesday and the turnaround snuffed  out a three-day streak for the dollar. The dollar index was steady at  90.004 after falling 0.5% on Tuesday and is not far above last week's  nearly three-year low of 89.206.

The GBP/USD pair refreshed daily tops, around the 1.3565-70 region. Bank  of England (BOE) Governor Andrew Bailey said that it appears less  severe than that in spring last year. Negative rates are a controversial  issue. There are a lot of issues with negative rates. No country has  used negative rates in 'retail' end of the financial market. There are  good reasons to think we're in a world of low rates for a long period of  time. EUR/USD trades flat in the mid-1.2100 on turnaround Tuesday. The  U.S. dollar held onto its recent gains on Tuesday after a spike in U.S.  Treasury yields lifted demand for the currency. The dollar had hit a  more than 2-1/2-year low in January after sliding for months as  ultra-dovish policy from the Federal Reserve encouraged investors to  seek alternative currencies. But expectations for a wave of spending  under an incoming Joe Biden administration have pushed Treasury yields  higher, with the 10-year yield reaching a 10-month high on Tuesday. The  dollar has bounced 1.5% since last Wednesday. Not only have markets  brought forward bets on Fed interest rate increases to 2023, many also  reckon it could start withdrawing, or tapering, asset purchases earlier.  The dollar index was unchanged at 90.438, above lows of 89.206 hit last  week.

GBP/USD lost critical support at 1.3545 as the cable tumbled down due to  Fed-related dollar strength and the UK's dire COVID situation. 1.3445  now turns from support to resistance. It is followed by 1.3640, a swing  high last week, followed by the recent peak of 1.3705. EUR/USD loses  further traction and drops below the 1.22 level. The recovery in the  greenback keeps the pair under pressure. The Sentix index returned to the positive territory in January. Dollar  Index was up 0.3% at 90.335, and is now over 1% higher than the almost  three-year low it hit last week. USD/JPY was up 0.2% at 104.16, while  the risk-sensitive AUD/USD was down 0.8% at 0.7701.

MHRA has approved Moderna's COVID-19 vaccine for use, as reported by  Reuters. The GBP/USD pair was up 0.25% near 1.3600. GBP/USD eyes 1.36 as  the US dollar remains firmer on the session. Cracks key averages on the  hourly chart, RSI stays bullish. Fresh Brexit also remains a cause for  concern ahead of NFP. The national lockdown announced on January 4 will  ensure a double-dip recession. MUFG forecasts -3.8% GDP in Q4 and -2.7%  in Q1 2021. Assuming the current lockdown serves to alleviate capacity  pressures on hospitals and vaccination roll-outs accelerate sharply, the  hit to the economy in Q4 and Q1 can reverse quickly. The 2 million per  week government target for vaccinations will be tough to achieve and we  can only expect a gradual reversal from full lockdown from March  onwards. MUFG Bank now expect the Bank of England (BoE) to cut rates  into negative territory at its next meeting on February 4. GBP will  therefore under-perform this year. EUR/USD adds to Thursday’s losses  well below 1.2300. The dollar’s rebound keeps weighing on the pair. US  Nonfarm Payrolls, jobless rate next of relevance in the docket. The  Dollar Index was down 0.1% at 89.812, bouncing off a near three-year low  following a slide of nearly 7% in 2020. USD/JPY was up 0.1% at 103.90,  while the risk-sensitive AUD/USD was up 0.2% at 0.7783.

Markets have been shrugging off the storming of the Capitol by  supporters of President Donald Trump. Investors focus on Democrats' win  of the Senate after the elections in Georgia, pushing stocks higher. The  dollar is torn by a move away from the safe-haven currency and higher  yields. Coronavirus and vaccine statistics and jobless claims are eyed.   Britain is struggling more than other countries, yet it is ramping up  its vaccine distribution. GBP/USD is trading below 1.36, also amid  England's strict lockdown.  EUR/USD trades near-daily lows of 1.2293,  down 0.24% on the day amid broad-based US dollar rebound, as the  Treasury yields rally about 2% so far. The dollar index was down 0.1% at  89.472, still close to its overnight low of 89.206, a level not seen  since March 2018. USD/JPY was up 0.2% at 103.29, with the yen  underperforming with a fresh state of emergency for Tokyo and the  neighbouring Saitama, Kanagawa and Chiba prefectures is due to be  declared later in the day as Covid-19 cases rise.

The USD witnessed some fresh selling during the early European session  and pushed the GBP/USD pair to two-day tops, around mid-1.3600s. The  pair quickly reversed an intraday dip to sub-1.3600 level and moved into  the positive territory for the second consecutive session on Wednesday.  The uptick also marks the fifth day of a positive move in the previous  six and was exclusively sponsored by the emergence of some fresh selling  around the US dollar. Hopes for a strong global economic recovery in  2021 remained supportive of the underlying bullish tone in the financial  markets. This, along with speculations that the Fed will keep rates  lower for a longer period undermined the safe-haven greenback and  further extended some support to the GBP/USD pair. Bulls seemed rather  unaffected by concerns about the economic fallout from the imposition of  a third nationwide lockdown in the UK, which might have raised  prospects for additional policy easing by the Bank of England.  Nevertheless, the USD price dynamics remains an exclusive driver of the  GBP/USD pair's intraday positive move. The UK Vaccines Minister Nadhim  Zahawi said Wednesday, the vaccine target set by Prime Minister Boris  Johnson is very stretching. However, he said that they are confident of  reaching the target. EUR/USD is currently trading at 1.2288, having  reached a high of 1.2327 early today. That was the highest level since  April 2018. The dollar index hit a fresh 2-1/2 year low on Wednesday  before firming about 0.1% to 89.575. The benchmark 10-year Treasury  yields rose above 1% for the first time since March.