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Monday, December 19th
The EUR/USD continues to build recovery at the start of the week from its 14-year lows marked last at 1.0366 spot. Currently the main currency pair is trading above the mid-point of 1.04 level finding support from ongoing correction of the US dollar against its major peers. However, pair’s recovery seems to be capped as better tone amid risk associated assets, driven by higher oil prices, is pressuring on the major. Today beside US dollar’s dynamics the pair will also be influenced by German Ifo Business Climate Index released in early Europe and by Fed Chairwoman J.Yellen’s speech that is scheduled on NA session.
The pound remains capped against its American counterpart unable to break through resistance level located at 1.25 handle. Seems that the GBP/USD pair is still suffering from Fed’s hawkish decision extending its consolidative pattern. However, weaker sentiments around the US dollar and better risk tone are supporting pound’s bulls lately allowing the pair to recover from its daily lows marked at 1.2467 spot. Nothing much is scheduled in economic calendar for the major except Fed’s J.Yellen’s speech that is going to be released during NA session, so the pair will follow dollar’s price moves during this day.
The USD/JPY pair is losing positions this Monday as investors are still locking-in some profits after massive rally led by Fed’s rate-hike. Currently the pair is trading in the region of 117 down from its daily highs marked at 117.97. Moreover, seems that the yen has caught some pips after lower-than-expected drop in Japanese export and import data seen this morning. Today the pair will continue to track US dollar’s dynamics amid a lack of fundamentals in economic calendar, while the next risk event for the pair remains BoJ monetary policy decision scheduled on this Tuesday.
The NZD/USD is consolidating its rebound from its half-year lows marked at 0.6931 spot last session. Currently the pair is trading around the level of 0.6975 gaining some pips as NZ data released this morning showed a rise in business confidence for December. Moreover, broadly weaker greenback is also contributing to pair’s recovery. Nothing much is scheduled in data calendar, so the major will continue following weaker sentiments around the greenback during this Monday.
The main events of the day:
German Ifo Business Climate Index – 11.00 (GMT +2)
Fed Chair J.Yellen’s speech – 20.30 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0366 R. 1.0514
USDJPY S. 116.97 R. 118.89
GBPUSD S. 1.2330 R. 1.2584
USDCHF S. 1.0200 R. 1.0342
AUDUSD S. 0.7208 R. 0.7414
NZDUSD S. 0.6859 R. 0.7097
USDCAD S. 1.3275 R. 1.3423
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