Market sentiment in Asia varies between better and worse. Chaos around brexit does not help to develop a stronger rebound of risky assets, but there are no signs of stronger sales.
There was more evidence of the state's activity in the economic sphere in China. The Ministry of Trade announced that it would take steps to support consumption in 2019 and stabilize foreign investments. The People's Bank of China injected CNY 560 billion into the banking system as part of open market operations - the largest one-time system supply in history. Shanghai Composite managed to erase declines during the session and is currently trading at the reference level.
In the currency market the night went quietly. EUR / USD fluctuates around 1.14. USD / JPY stood at 108.50.
On Wednesday, the 16th of January, the event calendar is light in important data releases, but gobal investors should keep an eye on Retail Sales data form the US and CPI data from the UK. There is a speech from Bank of England Governor Mark Carney scheduled for 09:15 am GMT as well.
EUR/USD analysis for 16/01/2019:
Mario Draghi in his speech to the European Parliament yesterday noted that threats to growth, especially those related to global factors remain strong. At the same time, he admits that the last series of data is weaker than expected by decision makers.
Let's now take a look at the EUR/USD technical picture at the H4 time frame. The pair is again falling towards 1.14. An attempt to return over 1,1450 turned out to be unsuccessful and this resistance at 1.1421 gain additional significance. The local low was made at the level of 1.1380 and if it is violated, then the road towards the technical support at 1.1354 will be open.
