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Wednesday, December 21st
The yen showed one of the best results across the market in Asia outperforming its American counterpart. The dollar/yen pair came under renewed buying pressure this morning as the greenback is still extending its correction down from its 14-year highs, posted after Fed’s hawkish decision seen last week. Another reason of better bearish tone around the pair is that traders are fixing the profit ahead of winter holydays thereby additionally supporting the yen. Today USD/JPY pair will continue to follow US dollar’s price-dynamics and RO-RO trend while only US Existing Home Sales will be able to set some short-term direction for the pair.
Seems that the pound has suspended its recovery vs. its American peer. Currently the GBP/USD pair is trading around 1.2370 spot down from its overnight highs marked at 1.2383 level, as the greenback remains broadly stronger despite downside correction vs. basket of its major peers. However, the pair was able to gain some pips during Asia on the back of British PM T.May’s soothing comments, where she admitted that she wants implementation phase to maintain soft Brexit process. Today USD dynamics will continue to dominate the major while US data from housing market will also bring some impetus for the pair later in NA session.
The EUR/USD pair is extending its corrective slide today moving away from the region of its 13-year lows, marked yesterday. Currently the major currency pair is trading just a few pips above the level of 1.04 consolidating its gains on the back of weaker demand for the US dollar seen lately. Moreover, in anticipation of holidays investors have lowered its activity, leaving doors open for erratic moves across the market amid lack of liquidity. Next for note is US data from housing market scheduled for NA session, while European docket remains empty.
The USD/CAD major is consolidating its losses trading in a narrow range around 1.3370 spot for the last couple of hours. Seems that Canadian bulls have taken a breather after significant pair’s fall from 3-week tops marked yesterday on the back of broad US dollar’s correction. Moreover, better tone in oil prices, triggered by bigger-than expected drop in API US crude oil stockpiles, has additionally supported the Loonie. Later today, only US Existing Home Sales and weekly Crude Oil Inventories will be able to provide some short-term direction for the pair.
The main events of the day:
US Existing Home Sales – 17.00 (GMT +2)
US Crude Oil Inventories – 17.30 (GMT +2)
NZ GDP – 23.45 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0321 R. 1.0451
USDJPY S. 116.43 R. 118.95
GBPUSD S. 1.2267 R. 1.2459
USDCHF S. 1.0227 R. 1.0349
AUDUSD S. 0.7207 R. 0.7287
NZDUSD S. 0.6859 R. 0.6959
USDCAD S. 1.3312 R. 1.3460
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