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Friday, December 9th
Today the euro bears took a breather in Asia allowing the EUR/USD pair to recover part of its recent significant losses. Yesterday the major currency pair slipped down for a two figures after the ECB announced its intention to extend its QE program. The ECB will prolong its monetary policy easing measures beyond March 2017 to at least December 2017, but will also cut the monthly bond purchase from 80 billion down to 60 billion EUR. Reacting on that the pair fell sharply refreshing its 4-day lows in the region of 1.06. Today the major will continue trading under bearish pressure as the market is still digesting yesterday’s ECB announcement especially in light of ongoing speculations of Fed’s decision scheduled on the next week.
Yesterday the GBP/USD pair refreshed its weekly lows at the 1.2549 mark erasing all its last week gains following the ECB meeting and subsequent Press Conference. However, the pound managed to recover part of losses but faced resistance at 1.2600 level. Today amid a lack of fundamentals the pair will continue to trade in red zone as broadly stronger dollar’s positions will keep driving the pair during this Friday.
Seems that the USD/CHF pair is consolidating its yesterday’s rebound to 4-day tops and now is trading in 25 pips narrow range. Following market’s sentiments, the major has grown from 1.0020 spot which is the lowest level since November 17 to 1.0178 mark as the ECB showed intention to extend its monetary policy easing program. Moreover, yesterday’s US jobless claims that came across with market’s expectations have also added some bullish pressure to the US dollar, reinforcing investors’ expectations of Fed’s rate-hike decision on the upcoming FOMC meeting that is scheduled on the next week.
Seems that USD/CAD remains one of the most unstrained pairs mostly ignoring yesterday’s post-ECB meeting rally. Yesterday the pair once again refreshed its 7-week lows stepping down under the level 1.3200 as CAD bulls boosted by oil price rebound remain strong. Currently the pair is trading in the region of 1.3190 unable to break its resistance located at 1.32 level. However, talks around next week’s FOMC meeting are gathering pace thereby accelerating the USD bulls which are limiting pair’s further downside traction.
The main events of the day:
UK Trade Balance – 11.30 (GMT +2).
Prelim. Michigan Consumer Sentiment – 17.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0419 R. 1.0969
USDJPY S. 112.57 R. 115.09
GBPUSD S. 1.2457 R. 1.2769
USDCHF S. 0.9961 R. 1.0277
AUDUSD S. 0.7387 R. 0.7545
NZDUSD S. 0.7103 R. 0.7257
USDCAD S. 1.3140 R. 1.3274
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