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Monday, December 11th
The EUR/USD pair remains better bid at the start of this week on the back of broad weakness of the US, as mixed data from the US labor market failed to cheer up US bulls. Despite the fact that the main indicators of employment in the US were positive, the results for the previous month were revised in the negative direction, which became the main factor of the retreat of USD. However, further upside of the pair looks fragile, as we are heading towards FOMC monetary policy decisions that forces investors to readjust their trading strategies, taking into account possible sharp spikes of volatility. On the data front, today European data calendar will remain broadly silent, while the US will publish another report from the labor market, which will help the pair to determine its further direction during the NA session.
The GBP/USD pair lost its positive mood at the start of European trading session on the back of minor US dollar attempts to recover its positions across the market. Seems that the market has passed over recent news, saying that the EU and Britain have finally reached the historic Brexit deal, thus allowing bears to take control over the pair. However, increased demand for higher-yielding assets supports GBP today, limiting any retreat of the pair. Adding to this, further sharp moves of the pair look unlikely, as we are heading towards the key event of this week – FOMC meeting, which will take place this Wednesday. Looking ahead, today the US will release another data from the labor market, while any developments related to Brexit negotiations will also be able to form pair’s further short-term trend.
The NZD/USD pair is one of the top gainers of this Monday, leaping above the level of 0.6900 on the back fresh NZ political developments, announced this morning. Today became known that the government of New Zealand appointed pension fund Chief Adrian Orr as the new head of the central bank. NZ bulls reacted positively to this announcement, as markets widely believe that the new head of the RBNZ will keep more hawkish policy stance. However, the market is not expecting massive changes in the near future, as inflation remains below its target level. Moreover, renewed weakness of the US dollar, despite Friday’s positive data from the labor market, will also remain supportive for the pair at the first working day of this week. In the day ahead, investors will focus their attention on the another report from the US labor market, while recent changes in the NZ CB's board will continue to exert influence on the pair.
The BTC/USD pair regained its positive trend, having recovered from its weekend’s deeps, marked near 12,500 region, and returned to the area of 16,700. The main reason of Bitcoin’s recovery remains news headlines, saying that Chicago-based CBOE Global Markets exchange launched the first Bitcoin futures contract. Moreover, it is expected that the world’s largest cryptocurrency will extend its positive trend, as several more US exchanges are going to launch the Bitcoin futures. Adding to this, ongoing speculations regarding further growth of Bitcoin up to the level of 20,000 USD on the back of a larger pool of capital entering the cryptomarket also contribute to BTC/USD renewed upside move. By the moment of writing, the price of Bitcoin was $ 16,462.00 and its market capitalization was above the level of 282 billion USD, according to coinmarketcap.com.
The main events of the day:
US JOLTs Job Openings – 17.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.1711 R. 1.1805
USDJPY S. 112.86 R. 113.88
GBPUSD S. 1.3251 R. 1.3583
USDCHF S. 0.9882 R. 0.9996
AUDUSD S. 0.7482 R. 0.7546
NZDUSD S. 0.6794 R. 0.6890
USDCAD S. 1.2766 R. 1.2918
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