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Thursday, December 29th
The EUR/USD pair has failed markets’ expectations of staying quiet in the holiday season. Yesterday the main currency pair fell for more than a cent refreshing its weekly lows at 1.0372 handle as fresh wave of buying interest around the greenback approached the market. However, the major has recovered most part of its losses and now is trading around the mid-point of 1.04 level, consolidating its previous gains. Pair’s recovery is mostly explained by retreat of the US dollar vs. basket of its major competitors on the back of poor data from US housing market seen yesterday. Moreover, intensifying risk-off moods are also supporting the euro providing extra legs to pair’s recovery. Only second-tier data are scheduled in event calendar for this Thursday, so the pair will continue to trace US dollar’s price dynamics during this day.
The yen extends its sharp down surge against its American counterpart into early Europe. Currently the USD/JPY pair is trading close to 116.30 level which is the lowest level in the last two weeks. Broadly based US dollar’s retreat, mostly explained by yesterday’s weak US data, has allowed yen’s bulls to take control over the USD/JPY pair. Moreover, risk aversion sentiments triggered by weakness around Asian equity markets are also supporting safe-haven assets, such as the yen. However, ongoing optimist around faster US economic growth under D.Trump’s presidency continues to support the dollar that might limit US currency’s further fall. For today the USD dynamics and RO-RO trend will remain as key drivers for the pair amid empty economic data calendar from both sides.
Seems that Kiwi bulls are still pushing the pair in north direction expanding its yesterday’s rally. At the moment of writing the NZD/USD pair was trading around the level of 0.6952 refreshing its weekly highs amid broad US dollar’s correction after yesterday’s sharp rally. However, further upside traction might turn limited as strengthened risk-off moods and slight correction of oil prices from their tops are suppressing the pair this Thursday. The immediate focus now remains on Crude Oil Inventories that are lined up for release later in the NA session.
The pound has recovered most part of its yesterday loses bouncing off its 7-week lows posted yesterday at 1.2201 spot. Seems that the GBP/USD pair has managed to keep its bid tone extending its recovery as weaker sentiments around the dollar are supporting pair’s bulls. However, risk-off sentiments seen lately are weighing the pair thereby limiting its growth pace. Today in absence of any fundamental release the pair will continue to trade driven by US dollar’s price dynamics and shrank risk appetite during this trading session.
The main events of the day:
US Crude Oil Inventories – 18.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0314 R. 1.0528
USDJPY S. 116.60 R. 118.14
GBPUSD S. 1.2144 R. 1.2336
USDCHF S. 1.0232 R. 1.0344
AUDUSD S. 0.7130 R. 0.7242
NZDUSD S. 0.6863 R. 0.6957
USDCAD S. 1.3504 R. 1.3624
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