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Tuesday, December 13th
Currently the EUR/USD is trading in a flat range of 15 pips consolidating yesterday’s gains in the region of 1.0630 on the back of dollar’s correction across the market. Yesterday the pair was able to gain some pips as traders have started to perform profit-taking actions in anticipation of crucial event of this week. However, the main currency pair failed on several attempts to build its bullish momentum during Asia as returned demand for US currency ahead of two-day FOMC meeting is limiting pair’s upside tractions. The immediate focus now lays on the ZEW economic surveys that will be released during Europe while, the US economy will bring today only secondary macro data.
The pound is following markets sentiments and consolidating yesterday’s gains staying unable to break beyond the level of 1.27. Yesterday the GBP/USD pair gained more than a cent on the back of greenback’s broad weakness. Moreover, upbeat Chinese data released this morning have slightly silenced strong risk-off moods thereby capping pair’s downside directions. However, seems that the US bears have run out of steam and now the dollar is showing resilience in anticipation of FOMC meeting. Next on tap remains UK inflation report while traders will also follow the latest developments surrounding FOMC meeting.
The dollar/yen pair is extending its recovery move from yesterday’s slide. Yesterday, the pair once again refreshed its 10-month tops at 116.20 spot and fell back to the region of 115 by the end of NA session. Currently the pair is trading at 115.30 level showing lack of volatility as market participants have entered alert mode ahead of this week crucial report. However, prevailing risk-off moods despite auspicious Chinese data and consolidation phase seen in the greenback are capping pair’s further growth. Today in absence of any important fundamentals the major will remain in mercy of US dollar’s dynamics, while FOMC meeting developments will also be closely watched for any impact on the pair.
The Aussie was unable to benefit from upbeat Chinese data released in Asia showing minor reaction as poor Australian data were weighing the AUD/USD pair. Currently the pair remains within striking distance of 0.7500 spot finding some support near 0.7490 level and consolidating yesterday’s rebound amid lack of direction. Today the major will continue to stay pressured by Australian data in absence of any release in today’s data light calendar while traders are starting to shift their attention toward two-day FOMC meeting which will begin today.
The main events of the day:
UK CPI – 11.30 (GMT +2).
German ZEW Economic Sentiment – 12.00 (GMT +2)
EU ZEW Economic Sentiment – 12.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0478 R. 1.0730
USDJPY S. 114.06 R. 116.60
GBPUSD S. 1.2513 R. 1.2779
USDCHF S. 1.0076 R. 1.0226
AUDUSD S. 0.7403 R. 0.7549
NZDUSD S. 0.7077 R. 0.7263
USDCAD S. 1.3079 R. 1.3187
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