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Friday, December 16th
Yesterday the pair EUR/USD refreshed its 14-year lows at 1.0366 spot inspired by recent events from US economy. However, the euro bulls were able to retake control over the pair by the end of the NA session and now the major is expanding its recovery beyond the level of 1.04. Expectedly the pair will continue to extend its rebound following US dollar’s dynamics while Eurozone’s CPI and data from US housing market will also be closely watched for any short-term impetus on the pair.
Seems that US bulls took a breather this morning allowing the USD/JPY pair to consolidate its post-FOMC rally in the region of its 10-month highs above the level of 118. Today expectedly the market will run in a quiet mode allowing the yen to recover some points. Moreover, the US Dollar Index performs slight correction down from its 13-year highs that is also supporting the yen. Today amid lighter data calendar the pair will continue to extend its pre-weekend corrective slide.
The GBP/USD pair is extending its recovery mode seen in Asia from its multi-week lows marked below the level of 1.24. However, any sharp upper moves are limited as the US dollar continues to be well bid in wake of recent Fed’s hawkish move. Moreover, yesterday the BOE unanimously decided to keep its rate unchanged at 0.25% level providing pound bulls with no support. In its statement, released right after the meeting, the BOE showed neutral position noting that monetary policy could be changed in both ways depending on a situation. Today the pair will continue to be driven by US dynamics amid lack of fundamentals from the UK docket while the US calendar offers data from housing market that will be released later this Friday.
The Aussie is losing positions against its American counterpart driving to the region of post-FOMC lows despite US dollar’s correction across the market. Currently the AUD/USD pair is trading at 0.7344 spot down from its daily tops marked at 0.7366 level as markets are still digesting Fed’s recent hawkish decision. On the other hand, a rebound in commodities seen lately is limiting pair’s further bearish traction. Nothing much is scheduled in data calendar for today as only US housing data could bring some impetus on the pair.
The main events of the day:
EU CPI – 12.00 (GMT +2)
US Building Permits – 15.30 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0266 R. 1.0612
USDJPY S. 116.28 R. 119.60
GBPUSD S. 1.2262 R. 1.2646
USDCHF S. 1.0125 R. 1.0429
AUDUSD S. 0.7282 R. 0.7468
NZDUSD S. 0.6943 R. 0.7169
USDCAD S. 1.3185 R. 1.3491
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