EUR/USD keeps the red near 1.0640
The demand for the single currency remains subdued at the end of the week, sending EUR/USD to the lower bound of the weekly range near 1.0640.The pair is extending its decline today, so far closing the week in the positive territory for the first time after six consecutive pullbacks, including a 5-cent advance from 14-year lows near 1.0340 to the 1.0830 region seen in early February.USD-dynamics, particularly exacerbated since President Trump took office late in January, stay as the main catalyst for the pair?s price action in the near to medium term, while the underlying constructive tone around the buck stays largely unchanged, always backed by the Fed-ECB policy divergence.Yesterday?s comments by President D.Trump have unveiled his plans for a (?phenomenal?) tax reform to be announced shortly, prompting the reflation/growth trade to resurface and at the same time add extra oxygen to the USD recovery.Nothing worth mentioning data wise in Euroland, whereas the Export/Import Price index and the advanced Reuters/Michigan index for the month of February are all due across the pond.At the moment the pair is losing 0.14% at 1.0644 facing the next support at 1.0636 (low Feb.10) followed by 1.0617 (low Jan.30) and finally 1.0606 (55-day sma). On the upside, a breakout of 1.0709 (20-day sma) would target 1.0715 (high Feb.8) en route to1.0770 (100-day sma) en route to 1.0829 (high Feb.2).

GBP/USD reverses UK data-led tepid gains, back below 1.25 mark
The GBP/USD pair failed to extend better-than expected UK manufacturing data-led bounce and has now retreated back below 1.25 psychological mark.Data released on Friday showed the UK industrial production recorded a m-o-m growth of 1.1% in December, while manufacturing production grew 2.1% during the same period. The data confirmed a strong end for 2016 and assisted the pair to recover early lost ground to session low near 1.2465 region.The up-move, however, lacked momentum and is currently trading around 1.2490-85 region, amid renewed optimism around Trump's reflation policies that seems to have revived the greenback's well-established post-election bullish trend. In fact, the key US Dollar Index built on previous session's strong up-move and is currently placed at the highest level since late Jan.Friday?s US economic docket features the release of import prices and Preliminary UoM consumer sentiment index, which would be looked upon for some fresh trading impetus during NA session.Immediate support on the downside is pegged at 100-day SMA near 1.2450 region and is closely followed by 50-day SMA support near 1.2430 area. A decisive break below this important support would turn the pair vulnerable to break below 1.2400 handle and head towards testing weekly lows support near 1.2350-45 region.On the flip side, bullish momentum above session peak resistance near 1.2520 level might continue to face supply at 1.2550 level. However, a convincing break through this important barrier, leading to a subsequent move through 1.2580 resistance, has the potential to lift the pair beyond 1.2600 handle, towards its next important resistance near 1.2655-60 area.

USD/JPY inter-markets
The greenback gained additional traction against the Japanese Yen on Friday, with the USD/JPY pair hitting 7-day peak near 113.85 region before retracing few pips to currently trade around mid-113.00s.The pair shot up during NY session on Thursday after the US President Donald Trump?s pledge to unveil a ?phenomenal? tax plan in coming weeks. Analysts think that lower taxes would encourage consumer spending and accelerate growth, eventually adding to inflationary pressure. The comments revived optimism surrounding Trump's pro-growth policies and triggered a fresh wave of up-surge in the US Treasury bond yields across all maturities. Surging US bond yields prompted investors to buy the US Dollar, providing a catalyst for a short-covering rally. In addition to this, declining Volatility Index (VIX), supporting the ongoing bullish momentum in the US equity markets, also drove flows away from the perceived safety of the Yen and lent an additional support to the pair's up-move. The pair, however, seems to have lost its upside momentum and struggled to risk further as market participants seemed to lighten their positions ahead of Japanese Prime Minister Shinzo Abe?s meeting with the US President Donald Trump, later on Friday.Meanwhile, continuous up-trend in the US Treasury yields is likely to limit any sharp downslide and the pair seems unlikely to weaken back below 113.00 handle.

USD/CHF building on momentum back above parity mark
The USD/CHF pair gained further traction on Friday and built on Thursday's strong up-surge through 100-day SMA hurdle.The pair held on to its move back above parity mark amid renewed optimism surrounding Trump's economic policies, which many analysts think would accelerate growth and add inflationary pressure to the economy. Trump's announcement on Thursday, to unveil a ?phenomenal? tax plan in coming weeks, sparked a broad based US Dollar rally and assisted the pair to break through recent consolidation phase and jump to nearly two-week highs. Meanwhile, improving investor risk-appetite, as depicted by positive trading sentiment in European equity markets, is further weighing on the Swiss Franc's safe-haven appeal and helping the pair to build on Trump-reflation trade. Traders on Friday will now look forward to the release of Prelim UoM Consumer Sentiment from the US in order to grab some short-term trading opportunities.Currently trading around 1.0025 region, immediate upside resistance is pegged at 1.0045 level (Jan. 30 high) above which the pair is likely to aim towards 1.0095 resistance (Jan. 20 high). Meanwhile on the downside, 100-day SMA near 1.00-0.9995 region now becomes immediate support to defend, which if broken could drag the pair towards 0.9975 horizontal zone ahead of 0.9950 support.

CAD labour market preview: what to expect of USD/CAD
Statistics Canada will publish its labour market figures for the month of January later in the session, with consensus expecting the jobless rate to have stayed put at 6.9%, while the Employment Change is seen flat, reverting December?s nearly 54K gain.In view of strategists at TD Securities, ?Stronger hiring indicators have quelled concerns of a correction for the time being and the Markit PMI report noted that job creation in the manufacturing industry hit a six-month high in January. This suggests an upside risk to goods-producing employment, which has underperformed in recent months, while an expected pullback in professional services employment will weigh on the aggregate for the services sector. We also see scope for further gains in fulltime employment following the rebound in hiring last month?.In the FX front, USD/CAD is looking to extend its sideline theme in the 1.3140 area, trying to put further distance from recent lows in sub-1.3000 levels seen in past sessions, always against the backdrop of quite a moderate recovery of the greenback. However, a positive surprise today could add extra wings to CAD although the strong support in the 1.3000 neighbourhood is expected to hold for the time being. On the upside, recent tops just above 1.3200 the figure emerge at the interim resistance.

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