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Tuesday, January 3rd
The euro has erased all today’s gains vs. its American counterpart retreating to the region of 1.0405. Fresh wave of buying interest around the greenback, seen in early Europe, forced the EUR/USD pair to fall back for 80 pips. Moreover, seems that euro bulls have ignored German Unemployment Change report, failing to provide any north directed impetus to the pair. Today the US economy will also be able to provide the pair with some directional move as US ISM Manufacturing PMI data are scheduled for release in the NA session.
The Loonie followed markets sentiments this morning and gave away most part of gains against its American neighbor. Currently the USD/CAD pair is trading around the 1.3420 spot consolidating its short north-directed rally, triggered by USD upsurge against basket of its major peers. However, higher oil prices witnessed in Asia are still supporting commodity linked Canadian currency, limiting pair’s further growth. Today the pair will remain at the mercy of oil price and the US dollar’s dynamics ahead of US ISM manufacturing PMI to be released later in the NA session.
The AUD/USD pair is trimming some of the upbeat Chinese data-led gains in early Europe as USD bulls have regained control over the pair. At the moment of writing the pair was extending its bearish rally moving closer to the 0.7200 level, down from its daily highs posted at 0.7235 handle. However, positive commodities seen this morning such as copper and oil are still supporting the Aussie, limiting pair’s further fall. Later in the day, only US ISM manufacturing PMI will be able to influence the pair, so the major most likely will continue to stay floating driven by global markets sentiments during this trading session.
Seems that the pound has lost its upside momentum amid renewed buying interest around the US dollar. Expectations of faster US economic growth under D.Trump’s presidency are broadly supporting the dollar lately, thereby strongly influencing the market. However, prevalent risk-friendly environment, triggered by positive Chinese data is lending extra legs to the Sterling and restricting the pair of any sharp south directed rally. Now all traders are focused on UK Manufacturing PMI that will be able to set up pair’s further short-term direction in Europe, while US ISM Manufacturing PMI will also grab investors’ attention later this Tuesday.
The main events of the day:
UK Manufacturing PMI – 11.30 (GMT +2)
US ISM Manufacturing PMI – 17.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0380 R. 1.0722
USDJPY S. 115.57 R. 117.89
GBPUSD S. 1.2181 R. 1.2467
USDCHF S. 0.9978 R. 1.0332
AUDUSD S. 0.7163 R. 0.7265
NZDUSD S. 0.6873 R. 0.6999
USDCAD S. 1.3342 R. 1.3554
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