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Tuesday, November 15th

Today the dollar is trading broadly weaker as investors have decided to take the profit off the table after massive post-election rally. However, dollar’s weakness remains capped as dust around election has settled down and rumors of this year Fed’s rate-hike are getting control over the market. Moreover, prospects of additional fiscal stimulus during D.Trump’s presidency are also supporting the US dollar. Today the market is expecting for crucial report of US Retail Sales for another hint of next Fed’s move.

Seems that the euro has regained the smile after six session of consecutive north directed rally. Yesterday the EUR/USD pair refreshed this year lows bottoming the level of 1.07 on the back of dollar’s strength triggered by prospects of further inflation growth under D.Trump’s control. However, the pair was able to break out its consolidative phase this morning despite worse-than-expected preliminary German GDP seen in early Europe on the back of profit taking sentiments on the dollar across the board. Next on tap remain German ZEW Economic Sentiment and bloc of American data that most likely will set up further direction for the pair.

The USD/JPY pair is losing points this Tuesday retreating from yesterday’s five-month highs marked at 108.54 spot. Seems that the US bulls took a breather this morning allowing the pair to step down to 108.00 level as investors are performing profit taking actions. Moreover, expanding risk-off moods are supporting yen’s safe-haven status lately. However, increasing odds of a December Fed’s rate-hike will continue to support US currency limiting any sharp corrective slide for the major.

Limited reaction was seen after release of RBA Meeting Minutes. This morning RBA has released its statement providing the market with no surprises. In its statement RBA has declared that Australian economy keeps its moderate growing pace and there is no need to rearrange inflation forecast. However, situation around housing and labor markets in Australia still remains uncertain, but nevertheless chances that current situation in both will trigger any further policy easing remain quite low.

The main events of the day:
UK Inflation Report Hearings - 12.00 (GMT +2)
German ZEW Economic Sentiment - 12.00 (GMT +2)
US Retail Sales – 15.30 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0632 R. 1.0892
USDJPY S. 106.07 R. 109.71
GBPUSD S. 1.2364 R. 1.2654
USDCHF S. 0.9829 R. 1.0073
AUDUSD S. 0.7506 R. 0.7590
NZDUSD S. 0.7038 R. 0.7178
USDCAD S. 1.3458 R. 1.3638

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Wednesday, November 16th

The euro continues its streak of defeats against US currency loosing points for eighth session in a raw. The dollar has recovered smile after minor price correction seen yesterday as rising chances of Fed’s hawkish move remain as main support factor for the US dollar. The probability of this year Fed rate-hike has grown up to 90%. Moreover, better risk tone seen last hours also is negatively influencing the EUR/USD pair, sending it to retest key support level of 1.0700 that is the lowest level of this year. Next on tap for the pair remains data bloc from US economy with PPI in the main role.

Despite broadly based US dollar’s strength the GBP/USD pair is still looking in north direction approaching 1.2500 resistance level this morning. The pair gained almost a cent since yesterday’s lows witnessed after excellent US Retail Sales as expanding risk appetite is supporting the pound lately. However, increasing odds of this year Fed rate-hike coupled with uncertainty around “Brexit” and triggering the Article 50 are limiting the pair of any sharp upsurges. All eyes now remain on data reports from UK labor market while US PPI will also grab traders’ attention later in NA session.

Seems that risk-on moods are gathering pace this morning negatively influencing safe-haven currencies such as JPY and CHF. The USD/JPY pair once again has broken through the level of 109 this morning refreshing its multi-month highs on the 109.60 spot. Moreover, Swiss franc is trading near its yesterday’s highs above its key resistance of 1.0000. Today the franc was able to reach the level of 1.0027 which is the highest mark since March 2016.

In wake of Monday’s earthquakes New Zealand’s Bureau of Statistics has announced that economic calendar has been revised and will be published by the end of the week. According to the information posted on its temporary webpage the Statistics NZ website is currently down and office closed. Moreover, today new headlines about another earthquake, witnessed in the same region, have appeared on the network. US, Canada and Australia have already sent their naval vessels to assist NZ. As it was expected the Kiwi is feeling depressed against its American peer due to ongoing situation. Currently the NZD/USD pair is trimming overnight gains and steps down below the level of 0.7100.

The main events of the day:
UK Average Earnings Index +Bonus - 11.30 (GMT +2)
US PPI – 15.30 (GMT +2)
US Crude Oil Inventories – 17.30 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0647 R. 1.0853
USDJPY S. 107.19 R. 110.33
GBPUSD S. 1.2304 R. 1.2602
USDCHF S. 0.9895 R. 1.0085
AUDUSD S. 0.7480 R. 0.7620
NZDUSD S. 0.7030 R. 0.7178
USDCAD S. 1.3369 R. 1.3593

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Thursday, November 24th

The dollar is showing extremely strong growth pace lately as US economy provides continuing support to its currency. Yesterday hawkish FOMC Meeting Minutes once again confirmed markets expectations of Fed’s hawkish interest rate decision, allowing the US dollar Index to break through its crucial resistance level of 102 and refresh its 13-years highs. Additionally, yesterday US economy beat market’s expectations with surprisingly strong report of Durable Goods Orders. Today US market will remain closed on the occasion of Thanksgiving Day. However, expectedly that demand for US dollar will continue to dominate across the market.

The euro had ended its recovery phase in Asia and fell to its nearly two-years lows on the back of mixed German GDP, released at the beginning of Europe. Moreover, yesterday’s more hawkish FOMC Meeting Minutes heated up already high expectations of this year Fed’s rate-hike, which in its turn have broadly boosted demand for the US dollar. Meanwhile, popular statistical agencies have shown that chances for a December Fed’s rate-hike now are approximately 95%. Today the euro will continue suffering from broadly based dollar’s strength however, it has all chances on minor recovery if investors decide to take profits off the table.

Seems that pound’s bulls are fighting hard for control over the GBP/USD pair. At the moment the pound continues to show steadiness above the level of 1.24 despite broadly based US dollar’s strength. Yesterday FOMC Statement once again reassured market participants that Fed’s rate-hike in December is a done deal thereby landing strong pressure on the pair. However, hawkish notes in UK’s Autumn Forecast Statement have given strength to the pound to resist dollar’s pressure. Today US market will remain closed due to celebrating Thanksgiving Day so markets will set up their focus on data released by UK economy.

Seems that the dollar/yen has broken out of its consolidative phase and now is eyeing on its yesterday’s highs posted after strong macroeconomic reports from US side. Yesterday the yen remained defenseless as Japanese market was closed due to the celebration of the national holiday, that became the reason for pair’s rally to its eight-month highs. Moreover, preliminary Japanese Manufacturing PMI released this morning also has shown downbeat results thereby limiting pair’s chances on immediate recovery. Today most likely the pair will remain under bullish control as strengthened USD positions coupled with continuing risk-on rally, boosted by overnight rise in oil prices, are strongly influencing the market.

The main events of the day:
US - Thanksgiving Day
German Ifo Business Climate Index – 11.00 (GMT +2)
GfK German Consumer Climate – 14.00 (GMT +2)
NZ Trade Balance – 23.45 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0456 R. 1.0690
USDJPY S. 109.98 R. 114.22
GBPUSD S. 1.2313 R. 1.2531
USDCHF S. 1.0057 R. 1.0237
AUDUSD S. 0.7329 R. 0.7473
NZDUSD S. 0.6940 R. 0.7112
USDCAD S. 1.3382 R. 1.3568

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Friday, November 25th

The yen continues to extend its fall against American counterpart after relatively weak inflation reports witnessed in Asia. Today the USD/JPY pair has met another wave of buying pressure nearly reaching the 114 spot and refreshing its 8-months high after Japanese consumer price data met markets expectation showing subsidence of the inflation rate in October and November. Such results cast doubt on BoJ’s forecast of inflation’s 2% growth rate in the next year. However, the pair has rebounded from its multi-month highs and now is trading near the region of 113 on the back of US dollar’s correction across the market. Today the pair will remain under bullish pressure as markets continue to digest the latest Japanese CPI figures.

The pound remains almost unchanged vs. its American peer at the end of this week extending its consolidative phase near the level of 1.2450. However, seems that US bulls have weakened the grip in wake of the dollar’s correction, allowing the pair to catch some pips in early Europe. Today UK flash GDP data will take center stage and expectedly will stay flat comparing with the previous month. However, in addition to the main data report today UK will also release Business Investment stats, that are especially exciting in view of Brexit concerns.

The EUR/USD pair has recovered the smile and now is trading near 1.06 level recovering almost a cent since yesterday’s lows. Pair’s recovery is majorly based on the US Dollar Index corrective downslide after reaching multiyear tops. Looking ahead nothing much is scheduled in economic calendars from both sides. Moreover, activity across the market will also remain reduced in response to shortened day in the US so the pair will continue trading in a quiet mode during this Friday.

The main events of the day:
UK preliminary Business Investment – 11.30 (GMT +2)
UK preliminary GDP – 11.30 (GMT +2)
US preliminary Services PMI – 16.45 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0482 R. 1.0618
USDJPY S. 111.84 R. 114.26
GBPUSD S. 1.2354 R. 1.2540
USDCHF S. 1.0119 R. 1.0213
AUDUSD S. 0.7341 R. 0.7451
NZDUSD S. 0.6953 R. 0.7035
USDCAD S. 1.3440 R. 1.3558

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Tuesday, November 29th

Nervousness around upcoming OPEC meeting is significantly influencing the market. This morning became known that Iran is ready to reach a deal in oil production freeze question. Today Iran’s Minister of Petroleum stated that Iran is ready to cut oil production within OPEC quotas. Moreover, Iran’s Minister of Petroleum noted that the US election results did not affect new contracts for oil and gas that is why an agreement could be reached. On the other hand, Russian Minister of energy provided the market with comments that Russia is not going to take part in the OPEC meeting as it remains non-OPEC member. Today market participants will continue to pay attention to developments surrounding the upcoming OPEC meeting that is scheduled for tomorrow, 30th of November.

The EUR/USD pair is trading modestly flat this Tuesday hovering around 1.0600 level. Moreover, today the euro will continue trading under bearish pressure on the back of worries based on Italian constitutional referendum that will be held on this Sunday. The main topic of the referendum remains approval of amending of the Italian Constitution. Moreover, yesterday traders negatively reacted on M.Draghi’s neutral statement in European Parliament sending the pair to retest its Monday’s lows at 1.0564 level. However, rally in oil prices seen lately has triggered risk aversion sentiments across the market rescuing the euro below 1.06 handle. Today US GDP released in NA session will take the most part of investors’ focus.

Yesterday the USD/CAD pair crashed for a cent to its multiday lows marked below 1.34 level on the back of oil price rally. However, the major managed to recover part of its losses, rising to 1.3434 spot, but still staying under bearish pressure as oil prices will continue to drive the pair during this day. Moreover, yesterday head of the BoC S.Poloz said that Canadian economy is experiencing some weakness lately but it was expected and BoC is ready to handle it also providing bullish momentum to Canadian currency. Today traders will continue closely eyeing the latest headlines regarding the OPEC meeting.

The cable remains broadly flat this morning wobbling around 1.24 level in cross with US dollar. Yesterday the GBP/USD fell for a cent reacting on a wave of risk aversion triggered by significant rally in oil prices. Today the pound will continue to trade under bearish pressure following broadly shrinking risk appetite in light of the upcoming tomorrow’s OPEC meeting, Friday’s Non-Farm Payrolls and the Italian Referendum scheduled for the weekend.

The main events of the day:
Prelim. German CPI – 15.00 (GMT +2)
Prelim. US GDP – 15.30 (GMT +2)
US CB Consumer Confidence – 17.00 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0498 R. 1.0742
USDJPY S. 110.46 R. 113.70
GBPUSD S. 1.2298 R. 1.2590
USDCHF S. 1.0035 R. 1.0213
AUDUSD S. 0.7409 R. 0.7529
NZDUSD S. 0.6996 R. 0.7140
USDCAD S. 1.3307 R. 1.3587

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Wednesday, November 30th

Wednesday is here and all attention as it was expected is focused on the one of the most important events of this week – OPEC meeting, that will begin today at 11.00 (+2 GMT) in Vienna. The main topic of this meeting remains oil production volume cut. So the market has already started to price in crucial agreement between OPEC members, as even Iranian oil minister has noted that Iran promises to be flexible to reach a deal. The OPEC members are trying to reach a deal for the last 11-months every time promising to agree on oil production issue. So today the market will unlikely accept anything less than oil output cut deal. The result of the OPEC meeting will expectedly provide significant impact on oil prices and eventually on the resource-linked currencies, such as Canadian, Australian and NZ dollars. The press conference, where the final decision will be announced will begin at 17.00 (+2 GMT). However, until then all eyes will remain on developments surrounding the crucial meeting.

The EUR/USD pair keeps its course in north direction as better than expected data provided by the US economy are still supporting the dollar. Yesterday the US economy showed better results of GDP and consumer confidence boosting dollar’s bulls and fueling talks about upcoming Fed’s interest rate decision. Meanwhile, ECB president M.Draghi during his interview has shown concerns about existing risks of the Eurozone’s economy, while noting that ECB has all instruments to reach the target level of the inflation just under 2%. Another volatile session for the pair is scheduled for this Wednesday with German Unemployment Change, EU CPI, another speech of M.Draghi and data from US labor and housing markets.

The Aussie had rebounded from its overnight highs marked just below 0.75 and dropped to mid-0.74 in cross with the US dollar on the back of surprisingly poor housing data released during Asia. However, AUD/USD pair’s drop remains capped as investors has entered in cautious mode ahead of the OPEC meeting. Today OPEC meeting will take center stage, while data from US economy will also have some impact across the market.

The ongoing recovery in of the US dollar is extending GBP/USD pair’s bearish trend. Yesterday, the market participants were pleasantly surprised by the bloc of positive data from US side, forcing the pair to retreat from its daily highs. Moreover, the BoE Financial Stability Report has shown that outlook for UK financial stability remains challenging additionally weighing the pound. Today the pair will continue to follow risk sentiments as OPEC meeting will be able to drive risk-associated assets throughout the session, while US data also will be watched for any impact for the pair.

The main events of the day:
German Unemployment Change – 10.55 (GMT +2)
Prelim. EU CPI – 12.00 (GMT +2)
Speech of the ECB President M.Draghi – 14.30 (GMT +2)
US ADP Nonfarm Employment Change – 15.15 (GMT +2)
Canadian GDP – 15.30 (GMT +2)
US Pending Home Sales – 17.00 (GMT +2)
US Crude Oil Inventories – 17.30 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0532 R. 1.0712
USDJPY S. 110.72 R. 114.16
GBPUSD S. 1.2329 R. 1.2605
USDCHF S. 1.0068 R. 1.0200
AUDUSD S. 0.7405 R. 0.7535
NZDUSD S. 0.7041 R. 0.7175
USDCAD S. 1.3355 R. 1.3517

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Thursday, December 1st

In the first winter day the market participants continue to digest the first OPEC output cut deal, witnessed since 2008. Yesterday as it was widely expected OPEC members came to agreement to cut oil production level by 1.2 mbpd to 32.5 mbpd. Saudi Arabia will reduce its output by 486 kbpd while Iraq agreed to cut production by 210 kbpd. The main obstacle remains the involvement of non-OPEC members to cut their oil production. However, in its turn Russia has already agreed to cut its oil output by 300 kbpd. Agreement conditions will be fully implemented by January, 2017 and will remain in force for 6 months. Reacting on that the oil prices have performed significant rally rising on up to 9% and triggering huge risk hunger across the market.

Seems that the euro has recovered a smile today and now is showing better positions in pair with the US dollar. Yesterday the EUR/USD pair fell for more than a cent amid demand for the US dollar and risk-on rally, triggered by higher oil prices. Currently the pair is trading above the level of 1.06, having rebounded from its yesterday’s lows marked at the mid-1.05 level. Today traders will focus their attention on a bloc of Manufacturing PMI’s released by Eurozone, while center stage today will be taken by US ISM Manufacturing PMI.

The yen continues to show weakness today reaching ten-month tops in the pair with its American counterpart. Yesterday the USD/JPY pair broke through its key resistance level of 114 and nearly reached 115 spot on the back of broadly stronger US dollar’s positions and significant wave of risk-on sentiments, triggered by oil price rally. However, seems that the US bulls have taken a breather allowing the yen to recover part of its positions in Asia. Later in NA session US economy will release ISM Manufacturing PMI that will be closely watched for any impact for the pair, while NFP remains the next risky event of this week that will once again assure investors in Fed’s rate-hike in December.

Yesterday the Australian dollar fell sharply unable to benefit from oil price upsurge triggered by the OPEC meeting. However, seems that US bulls have eased the grip allowing the AUD/USD pair to rebound from its yesterday’s lows. Moreover, a set of better-than-expected Chinese Manufacturing PMI’s have also provided extra legs to the Aussie. Nothing much is expected today for the pair except US ISM Manufacturing PMI, while tomorrow traders will see Australian Retail Sales and NFP that will provide the pair with significant impact.

The main events of the day:
German Manufacturing PMI – 10.55 (GMT +2)
UK Manufacturing PMI– 11.30 (GMT +2)
ISM Manufacturing PMI – 17.00 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0488 R. 1.0716
USDJPY S. 111.20 R. 116.16
GBPUSD S. 1.2379 R. 1.2585
USDCHF S. 1.0063 R. 1.0259
AUDUSD S. 0.7294 R. 0.7540
NZDUSD S. 0.7008 R. 0.7206
USDCAD S. 1.3310 R. 1.3526

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Friday, December 2nd

The GBP/USD pair remains in positive mood so far, extending its Thursday’s advance into early Europe. Yesterday the pound rose for approximately two cents against its American counterpart inspired by statement of Secretary of State for Exiting the European Union D.Davis that he will consider EU budget payments if required to keep access to EU markets. The statement of UK Brexit minister revived hopes of a soft Brexit and forced the pound to refresh its two-months highs near 1.2700 level. Today most likely the pair will stay under bullish control amid broad US dollar’s correction after positive data witnessed yesterday. However, later in NA session NFP will grab most of traders’ attention providing the pair with strong short-term impetus.

Seems that the euro is extending its bullish momentum in the pair with US dollar stepping away from its yearly lows marked at the end of the last week. At the moment the EUR/USD pair is trying to expand its north-directed rally and to get closer to the level of 1.0700. Moreover, dollar’s correction after stronger-than-expected data from US economy and shrinking risk appetite in anticipation of US crucial report and Sunday’s Italian referendum are supporting the pair lately. Today all eyes will remain on US Nonfarm Payrolls, that will provide another hint of next Fed’s move regarding its interest rate.

The Aussie remains weaker against the greenback amid softer tone in commodities and broad risk aversion sentiments seen this Friday. Moreover, even upbeat Australian Retail Sales data were not able to provide the AUD/USD pair with enough impetus to extend pair’s recovery. Currently the major is hovering near 0.7400 level in anticipation of the main event of this day – NFP, as traders refrain from placing any directional bets ahead of crucial data from US labor market.

The Canadian dollar is trading on a firm note against its American neighbor remaining near its monthly highs marked just below the 1.3300 level. Seems that the Loonie is consolidating its gains as post-OPEC oil price rally has run out of steam. Later in the day, labor markets from both sides will release reports that will take center stage along with Baker Hughes oil rig count that also will be closely watched in light of recent events.

The main events of the day:
UK Construction PMI – 11.30 (GMT +2)
US Nonfarm Payrolls – 15.30 (GMT +2)
US Unemployment Rate – 15.30 (GMT +2)
Canadian Unemployment Rate – 15.30 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0631 R. 1.0673
USDJPY S. 113.46 R. 113.98
GBPUSD S. 1.2577 R. 1.2627
USDCHF S. 1.0098 R. 1.0114
AUDUSD S. 0.7411 R. 0.7437
NZDUSD S. 0.7082 R. 0.7104
USDCAD S. 1.3279 R. 1.3327

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Monday, December 5th

Yesterday Italian PM M.Renzi failed on his attempt to hold a constitutional reform, without meeting any support from Italian residents at the recent national referendum, that lead to significant moves across the FX market. The politician admitted his defeat and announced decision to resign after the final results were published. Moreover, M.Renzi noted that it was clear win of “No” voters and he will take full responsibility for the defeat. Also PM was surprised by a high level of turnout during referendum. Many of experts have already compared Italian referendum with Brexit.

The EUR/USD pair remains weak at the start of this week following the Italian referendum. Today the pair fell sharply refreshing its nearly two-year lows at 1.0506 level. However, pair’s downslide was capped as market participants were expecting negative outcome of the referendum and have managed to price-in the results into the pair. However, seems that bulls are slowly taking control over the pair in early Europe, allowing it to retake the 1.06 level. Today most likely the pair will remain under influence of recent political events from Euroland.

Following market sentiments, the GBP/USD pair is trading with moderate losses at the start of this week. However, the pair was able to perform minor recovery and managed to get back to the region of the 1.27 level. Today the pound will continue to stay under bearish pressure as ongoing hard “Brexit” concerns coupled with negative risk sentiment after crucial Italian referendum will remain as main drivers for the pair while UK Service PMI will also be able to provide the pair with near-term impetus.

The dollar/yen pair retakes the level of 114 as the market enters into European trading session. Today during Asia, the pair fell to its 3-day lows just below the 113 level as fresh wave of risk aversion sentiments triggered by Italian referendum approached the market. However, seems that the pair has lost its bearish momentum and now is gathering fresh pips in response to the latest comments from Japanese PM S.Abe, that BoJ should take appropriate steps to reach inflation target level of 2%. Such comments of PM have triggered fresh wave of speculations regarding further BoJ’s monetary policy easing measures. Today traders will focus on US ISM Non-Manufacturing PMI while risk sentiments will continue to drive the pair during European session.

The main events of the day:
UK Service PMI – 11.30 (GMT +2)
Speech of the ECB President M.Draghi – 16.00 (GMT +2)
US ISM Non-Manufacturing PMI – 17.00 (GMT +2)
Speech of the BoE Governor M.Carney – 19.00 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0593 R. 1.0725
USDJPY S. 112.78 R. 114.54
GBPUSD S. 1.2509 R. 1.2845
USDCHF S. 1.0045 R. 1.0149
AUDUSD S. 0.7373 R. 0.7507
NZDUSD S. 0.7058 R. 0.7186
USDCAD S. 1.3220 R .1.3350

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Tuesday, December 6th

Having faced resistance near yesterday highs, marked in 0.75 region, the AUD/USD pair has come under renewed selling pressure stepping down to its comfort zone located near 0.7450 level. Today the Aussie was unable to benefit from RBA’s decision of keeping its interest rate unchanged as dovish statement announced after RBA’s meeting showed bank’s expectations of a slower economy growth rate in short-term perspective. Moreover, lower commodities witnessed this morning are also providing some bearish momentum to resource-linked currencies such as Australian dollar. Nothing important is scheduled for the pair in data calendar for today, so the major will keep floating under influence of global market sentiments awaiting for Australian GDP scheduled for next Asian session.

Seems that bulls are fighting hard for the control over the NZD/USD pair. Earlier the pair spiked the level of 0.71, as traders closed its longs ahead of RBA’s interest rate decision expecting higher volatility level in AUD crosses, part of which could be reflected in Kiwi’s pairs. However, the pair has managed to recover most part of its losses and now is trading back in the region of mid-0.71s amid the broadly lower greenback. However, weakness around commodities seen lately is limiting pair’s bullish momentum. Today only US secondary data would be able to provide some impetus on the pair, so expectedly it will continue to trade following global market’s sentiment.

The euro is consolidating part of its gains vs. its American counterpart after crucial Italian referendum. Seems that bulls appreciated referendum results allowing the pair to refresh its three-week highs at 1.0796 spot. Moreover, after short consolidation phase seen during Asia euro bulls have regained control over the pair driving it to its yesterday’s highs. However, growing probability that ECB will expand it QE program tomorrow will keep shared currency under pressure. Today amid data light calendar the pair will remain under influence of USD dynamics during this trading session.

The pound is remaining stronger vs. its American peer for the second week in a row extending its bullish momentum. Currently the GBP/USD pair is trading near its two-month highs marked at 1.2764 spot just a few minutes ago. The pound’s stronger position can be explained by ongoing talks over the soft “Brexit” and D.Trump’s wish to strengthen trade relations between UK and the US. In absence of any economic data from UK the pair will gain its traction from US dynamics and growing risk appetite, while the US will provide the pair with only secondary reports that won’t bring any significant moves to the FX market.

The main events of the day:
US Trade Balance – 15.30 (GMT +2)
Canadian Ivey PMI – 17.00 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0394 R. 1.0980
USDJPY S. 111.87 R. 115.75
GBPUSD S. 1.2577 R. 1.2819
USDCHF S. 0.9967 R. 1.0229
AUDUSD S. 0.7374 R. 0.7546
NZDUSD S. 0.7032 R. 0.7210
USDCAD S. 1.3167 R. 1.3407

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Thursday, December 8th

The USD/CAD pair corrects after yesterday’s massive rally triggered by BoC’s decision. As it was widely expected yesterday the Bank of Canada left its interest rate unchanged and presented a moderate economic growth outlook sending the pair to the lowest level since October, marked at 1.3208 spot. Moreover, pair’s decline was also supported by better tone in oil prices after higher-than-expected drop in oil inventories released straight away after the decision of the BoC. Expectedly today the pair will extend its corrective move as only secondary data releases are scheduled in data calendar from both sides.

The euro has paused its upside momentum and now is consolidating its gains in the pair with the greenback as traders remain cautious in anticipation of the ECB policy decision due later in the session ahead. Expectedly today the ECB won’t change its interest rate while extension of the QE program beyond March 2017 remains one of the most discussed questions of this day. Meanwhile, weaker tone in the US dollar and risk-on sentiments, triggered by strong Chinese trade data, will also influence the pair during this day.

The AUD/USD pair was unable to consolidate its positions above its key resistance level of 0.7500 stepping down to the region of 0.7490. Today the pair has come under fresh buying interest after Chinese trade balance showed strong results leaving behind poor Australian trade data. Later ahead in NA session US economy will release secondary data from labor market while volatility led by ECB monetary policy decision could also contribute to pair’s direction during European session.

The yen remains highly pressured this Thursday after mixed data from Japanese economy with poor GDP at the head. Moreover, increased risk-on sentiments boosted by auspicious trade data from China are also putting the USD/JPY pair under bullish pressure. Currently the major is extending recovery from its three-day lows marked at 113.12 spot and is eyeing to retake its key resistance of 114. Today the pair will keep following risk sentiments while ECB meeting during the European session will also have some impact across the FX market.

The main events of the day:
ECB Interest Rate Decision – 14.45 (GMT +2).
US Initial Jobless Claims – 15.30 (GMT +2)
ECB Press Conference – 15.30 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0684 R. 1.0802
USDJPY S. 112.86 R. 114.84
GBPUSD S. 1.2512 R. 1.2738
USDCHF S. 1.0038 R. 1.0126
AUDUSD S. 0.7393 R. 0.7527
NZDUSD S. 0.7068 R. 0.7214
USDCAD S. 1.3177 R. 1.3323

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Monday, December 12th

On Sunday 13 non OPEC members agreed to cut its oil outputs in total by 558kbpd, most of which (300kbpd) will take Russia. This amount of cuts will be added to total OPEC agreed oil production cuts of 1.2mbpd. The total volume of oil output cuts is amounting to nearly a 2% of global oil supply. Reacting on that oil prices have refreshed its tops on levels last seen in July 2015. Moreover, inspired by oil price rally commodity-linked currencies such as CAD and AUD have also benefited from the latest headlines. Currently the USD/CAD pair is trading near its 2-moht low, marked at 1.3112, while the Aussie has also recovered a smile against its American counterpart regaining some pips after downside rally witnessed last Friday. And now the AUD/USD pair now is hovering in region of 0.7450 level.

And once again the yen fell under bearish pressure allowing the USD/JPY pair to refresh it 10-monht highs at 115.80 spot. This morning the yen had performed some recovery moves on the back of upbeat Japanese data, but soon have come under strong bearish pressure as fresh wave of risk hunger, triggered by the latest headlines of oil production cuts, approached the market. Moreover, today the USD/JPY pair will continue to stay under bullish pressure as ongoing talks of Fed’s policy tightening is strongly supporting the US dollar.

The EUR/USD continues to stay in the region of this year lows just below 1.0570 handle. Today the euro is still losing positions against its American peer as traders continue to digest extension of ECB’s QE program. Moreover, prevailing risk-on sentiments, triggered by oil price rally, and broadly stronger US dollar, supported by ongoing speculations of Fed’s hawkish decision, will continue to drive the pair during this trading session restricting it from any sharp upper moves.

The pound is trying to recover a smile in the pair with US dollar amid risk positive environment led by oil price rally. Seems that pound bulls were able to break its streak of losses today as non OPEC members have agreed to support cartel of oil producers by limiting its oil output. However, market’s expectations that Fed will tighten its monetary policy is limiting pair’s north directed moves. Nothing much is scheduled for the pair in data calendar for today, so the pair will continue to trade driven by USD dynamics and risk trends during this trading session.

The main events of the day:
None

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0472 R. 1.0670
USDJPY S. 113.52 R. 116.24
GBPUSD S. 1.2513 R. 1.2649
USDCHF S. 1.0118 R. 1.0238
AUDUSD S. 0.7399 R. 0.7519
NZDUSD S. 0.7085 R. 0.7211
USDCAD S. 1.3119 R. 1.3241

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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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Wednesday, December 14th

The day of the most discussed event is here. Today the Fed will announce a decision regarding its further monetary policy. The market is widely expecting that the Fed will increase its interest rate by 25 bps, from current 0.50% to 0.75% as odds of today’s rate hike are close to 100%. Moreover, recent presidential elections with D.Trump’s promises of tax cuts and high investments in US infrastructure are also pushing FOMC members to make hawkish decision today. Furthermore, not only D.Trump’s talks are making Fed’s rate-hike possible, macroeconomic data seen over the last few months were highly supportive that also contributes to further monetary policy tightening. But for now, seems that the market is keeping silence ahead of crucial Fed’s decision that will be announced by the end of NA session.

The EUR/USD is building bullish momentum beyond 1.0650 level as investors are refraining from creating fresh long positions on USD ahead of the FOMC interest rate decision. Moreover, prevailing risk-off moods are also benefiting the euro. However, the current pair’s north directed trend won’t last long as widely expected Fed’s hawkish decision should stir up the USD bulls. As for data calendar, today European docket remains empty, while US will release PPI and Retail Sales that are scheduled on NA session.

Currently the pound is attempting to recover some pips against its American peer after yesterday’s sharp downside rally triggered by strong risk-off sentiments. At the moment the GBP/USD pair is trading around mid-point of 1.26 level showing lack of directions as market participants remain cautious anticipating for Fed’s monetary policy decision that expectedly will bring some volatile moves across the market. Looking ahead, today UK data from labor market, BoE Governor M.Carney’s speech and bloc of macro data from US side will also provide the pair with short-term impetus. Moreover, BoE will also announce its monetary policy decision that is scheduled on Thursday, but most likely BOE Interest Rate will remain unchanged.

The USD/JPY pair is losing some points as broadly weaker dollar’s positions and strong risk-off sentiments are supporting the yen despite mixed data from Japanese economy seen this morning. But in general, the pair remains little changed as traders have entered cautious mode ahead of one of the riskiest events of the month that will be announced by the end of NA session. But until than the market will be able to gain some impetus from US PPI and Retail Sales that also might provide trading opportunities in near-term perspective.

The main events of the day:
UK Average Earnings Index +Bonus – 11.30 (GMT +2)
UK Claimant Count Change – 11.30 (GMT +2)
BoE Governor M.Carney’s speech – 14.15 (GMT +2)
US Retail Sales – 15.30 (GMT +2)
US PPI – 15.30 (GMT +2)
US Crude Oil Inventories – 17.30 (GMT +2)
Fed’s Interest Rate Decision – 21.00 (GMT +2)
NZD GDP – 23.45 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0568 R. 1.0696
USDJPY S. 114.36 R. 115.88
GBPUSD S. 1.2603 R. 1.2753
USDCHF S. 1.0076 R. 1.0166
AUDUSD S. 0.7451 R. 0.7547
NZDUSD S. 0.7152 R. 0.7256
USDCAD S. 1.3086 R. 1.3160

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Thursday, December 15th

And the decision is made. As it was widely expected yesterday the Fed increased its interest rate by 25 bps from previous 0.50% to current 0.75%, significantly boosting the US currency against its major peers. Moreover, the Fed in its statement, announced straight away after FOMC meeting, showed hawkish intentions of having 3 more interest rate hikes during 2017, up from 2 previously planned. Fed’s Chairwoman J.Yellen during her interview also has provided the US dollar with some bullish impetus noting that interest rate raise should be perceived as confidence in the US economy. The US Dollar index that measures dollar’s positions against its main competitors rose up to 102.58 once again refreshing its 13-year highs.

The EUR/USD is extending its weakness this morning after crucial hawkish Fed’s decision. Yesterday the major currency pair fell for about 200 pips after it became known that the Fed had increased its interest rate by 25 bps. Currently the pair is trading at 1.0485 spot near its 21-month lows marked at 1.0469 level during Asian trading session. Today the euro will try to recover part of its position on better figures of the Euro area flash manufacturing PMI’s, while all attempts of recovery expectedly will be silenced as markets continue to digest the latest US events. Beside, today the BOE will announce its interest rate decision that also could bring some short-term trading opportunities on the pair.

The pound is consolidating its yesterday’s fall near mid-point of 1.25 level in the pair with US dollar anticipating for BOE monetary policy decision. Yesterday the GBP/USD pair followed global market’s sentiments and fell for two cents refreshing its two-week lows at 1.2513 handle as the Fed had increased its interest rate. Now all focus shifts on upcoming interest rate decision of the BOE, that expectedly will keep its rate unchanged however, BOE statement will be closely watched for any hints on further monetary policy outlook especially after positive UK macro data seen lately.

Seems that Swiss bulls have remained unimpressed by SNB Interest Rate Decision. The USD/CHF pair continues hovering above the level of 1.02 consolidating its yesterday’s gains showing no reaction on SNB Interest Rate Decision. As it was widely expected the SNB left its interest rate unchanged providing no impetus on the pair as traders continue to digest yesterday’s FOMC meeting results. Looking ahead, today the US data reports will be able to bring some impact on the pair, but for now the pair will continue to stay influenced by global market’s sentiments.

The main events of the day:
UK Retail Sales – 11.30 (GMT +2)
BOE Interest Rate Decision – 11.30 (GMT +2)
US Core CPI – 15.30 (GMT +2)
Philadelphia Fed Manufacturing Index – 15.30 (GMT +2)
BOC Governor S.Poloz’s speech – 18.15 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0391 R. 1.0741
USDJPY S. 113.77 R. 119.01
GBPUSD S. 1.2407 R. 1.2797
USDCHF S. 1.0030 R. 1.0308
AUDUSD S. 0.7309 R. 0.7571
NZDUSD S. 0.7018 R. 0.7288
USDCAD S. 1.3002 R. 1.3434

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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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Monday, December 19th

The EUR/USD continues to build recovery at the start of the week from its 14-year lows marked last at 1.0366 spot. Currently the main currency pair is trading above the mid-point of 1.04 level finding support from ongoing correction of the US dollar against its major peers. However, pair’s recovery seems to be capped as better tone amid risk associated assets, driven by higher oil prices, is pressuring on the major. Today beside US dollar’s dynamics the pair will also be influenced by German Ifo Business Climate Index released in early Europe and by Fed Chairwoman J.Yellen’s speech that is scheduled on NA session.

The pound remains capped against its American counterpart unable to break through resistance level located at 1.25 handle. Seems that the GBP/USD pair is still suffering from Fed’s hawkish decision extending its consolidative pattern. However, weaker sentiments around the US dollar and better risk tone are supporting pound’s bulls lately allowing the pair to recover from its daily lows marked at 1.2467 spot. Nothing much is scheduled in economic calendar for the major except Fed’s J.Yellen’s speech that is going to be released during NA session, so the pair will follow dollar’s price moves during this day.

The USD/JPY pair is losing positions this Monday as investors are still locking-in some profits after massive rally led by Fed’s rate-hike. Currently the pair is trading in the region of 117 down from its daily highs marked at 117.97. Moreover, seems that the yen has caught some pips after lower-than-expected drop in Japanese export and import data seen this morning. Today the pair will continue to track US dollar’s dynamics amid a lack of fundamentals in economic calendar, while the next risk event for the pair remains BoJ monetary policy decision scheduled on this Tuesday.

The NZD/USD is consolidating its rebound from its half-year lows marked at 0.6931 spot last session. Currently the pair is trading around the level of 0.6975 gaining some pips as NZ data released this morning showed a rise in business confidence for December. Moreover, broadly weaker greenback is also contributing to pair’s recovery. Nothing much is scheduled in data calendar, so the major will continue following weaker sentiments around the greenback during this Monday.

The main events of the day:
German Ifo Business Climate Index – 11.00 (GMT +2)
Fed Chair J.Yellen’s speech – 20.30 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0366 R. 1.0514
USDJPY S. 116.97 R. 118.89
GBPUSD S. 1.2330 R. 1.2584
USDCHF S. 1.0200 R. 1.0342
AUDUSD S. 0.7208 R. 0.7414
NZDUSD S. 0.6859 R. 0.7097
USDCAD S. 1.3275 R. 1.3423

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Thursday, December 22nd

Having rebounded from the region of its half-year lows posted at 0.6890 earlier this morning, the NZD/USD pair has regained a smile and now is trading above the level of 0.69. The major was trading back and forward this morning on the back of auspicious heavy data bloc from New Zealand on the one hand and fresh wave of buying interest around the US dollar on another. However, a strong GDP report seen this morning eased experts’ expectations of RBNZ monetary policy easing, thereby lending extra leg to the Kiwi. Today, amid lowered trading activity the pair will remain influenced by global market’s sentiments while US heavy-data calendar will be able to bring some trading opportunities for the pair.

The USD/CAD major once again refreshed its three-week tops at 1.3446 spot this morning inspired by weaker sentiments around the oil. Yesterday oil prices came under renewed selling pressure after the EIA weekly report had shown surprisingly strong increase in crude oil inventories providing all commodity-linked currencies with extra bearish pressure. However, the major was able to consolidate its overnight gains on the back of minor oil price correction seen in Asia. Today the pair will continue to trade under influence of oil’s price-dynamics until NA session, when data bloc from both economies will be able to set up pair’s further short-term direction.

Currently the EUR/USD pair is consolidating its recent gains near the level of 1.0435. However, better tone around US dollar’s price-dynamics, supported by yesterday’s upbeat release form US housing market, is limiting pair’s further north sided traction. Expectedly today trading volumes will remain thin, but activity may pick up some pace in NA session following data bloc from the US economy, while European session will remain data-light.

Nothing much has changed for the GBP/USD pair since last trading session on the back of thin trading volumes across the market. However, risk-off moods, triggered by yesterday’s oil price rally, and broad US dollar’s recovery are suppressing the pair this Thursday. Today amid lack of fundamentals from the UK economy the pound will remain at the mercy of American dollar’s price actions while the US dataflow scheduled on NA session will also be able to provide impetus for the pair.

The main events of the day:
US Core Durable Goods Orders – 15.30 (GMT +2)
US GDP – 15.30 (GMT +2)
Canadian Core CPI – 15.30 (GMT +2)
Canadian Core Retail Sales – 15.30 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0350 R. 1.0488
USDJPY S. 116.61 R. 118.53
GBPUSD S. 1.2288 R. 1.2422
USDCHF S. 1.0194 R. 1.0332
AUDUSD S. 0.7205 R. 0.7295
NZDUSD S. 0.6849 R. 0.6971
USDCAD S. 1.3329 R. 1.3467

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Tuesday, December 27th

Today the EUR/USD pair breaks its 4-day winning streak and turns lower amid tightened trading activity on the market. Moreover, ongoing concerns around Italian banks which include the world’s oldest bank Monte Dei Paschi, are weighing moods around the common currency. However, the major currency pair has managed to rebound from its overnight lows posted at 1.0432 and now is trading around mid-point of 1.04 level as minor correction seen around the US dollar is lending support to the EUR/USD pair. Today the major will continue to track sentiments around the US dollar amid post-Christmas low trading volumes and minimal volatility across the market.

Seems that the dollar/yen pair is consolidating part of its today’s gains as the dollar turns slightly lower against basket of its major peers. This morning the pair refreshed its weekly highs at 117.46 spot on the back of upbeat sentiments around the dollar and poor data from Japanese economy. However, apparently US bulls have taken a breather allowing the pair to step down to the region of 117.30. Today the major will keep its positive mood in wake of insufficient Japanese reports and better tone around the US dollar while US CB Consumer Confidence will also be able to set up pair’s short-term direction during the NA session.

The GBP/USD pair continues to drive its recovery from session’s lows marked in the region of 1.2260. Another wave of offers came across the pair this morning as upbeat sentiments around the greenback seen during Asia provided pair’s bears with support. However, the pair managed to rebound from this day lows as the US dollar has lost its upside traction across the board allowing the major to retake the region of 1.2280. Moreover, in mid-term perspective the pound will remain pressured, as concerns around hard “Brexit” that will start in 2017, are negatively influencing the UK currency. In the day ahead, the pair will continue to float driven by US dollar’s price dynamics as UK markets are closed due to Christmas celebrations.

Seems that the Aussie has regained a smile against its American counterpart resuming its recovery from 7-week lows witnessed on Friday. Broad greenback’s correction against its major peers and higher copper prices seen during the last few hours have allowed the pair to pick up some northern traction. On Tuesday sentiment around the dollar will remain the sole driver for the pair’s movement amid quiet trading due to a holiday in many countries including Australia. However, the release of CB Consumer Confidence might provide some trading opportunities for short-term traders.

The main events of the day:
US CB Consumer Confidence – 17.00 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0406 R. 1.0492
USDJPY S. 116.91 R. 117.79
GBPUSD S. 1.2200 R. 1.2338
USDCHF S. 1.0223 R. 1.0299
AUDUSD S. 0.7119 R. 0.7255
NZDUSD S. 0.6832 R. 0.6934
USDCAD S. 1.3444 R. 1.3600

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Wednesday, December 28th

Yesterday the EUR/USD pair managed to break out of its bearish trend and performed upper move refreshing today’s tops at 1.0480 spot despite better-than-expected US CB Consumer Confidence seen in the last NY session. Yesterday better readings from US economy failed to provide any bullish impetus on the US dollar as investors are awaiting for more detailed D.Trump’s economic outlook to perform any further important steps. Today the pair will keep tracing global market’s sentiments as Eurozone’s docket remains empty, while US Pending Home Sales may provide fresh impetus to the greenback across the board.

Another quiet session approached the market this Wednesday. The dollar/yen pair remains little changed since today’s opening in light of holiday-thinned trades. Even more, investors payed little of attention to mixed data from Japanese market seen in Asia leaving the pair without clear direction this morning. However, broadly muted sentiments around the US dollar are adding some bearish momentum to the pair. Nothing much is scheduled in event calendar, as only data from US housing market will be able to provide investors with short-term trading opportunities.

Having rebounded the level of 1.2240 the GBP/USD pair currently is extending its recovery eyeing to retake 1.23 resistance level. Slightly weaker sentiments around the greenback seen lately and better risk tone are keeping the pair underpinned this Wednesday. At the moment of writing the pair was trading around 1.2290 level upper from its today’s lows marked at 1.2265 spot. Today most probably the market will continue to run in conditions of lowered trading activity in wake of festive season, while the US dynamics will remain as solo driver for the pair.

The Canadian dollar remains flat against its American neighbor hovering around the level of 1.3570 and stepping down a bit from its monthly lows witnessed yesterday at 1.3580 level. The USD/CAD major remains pressured from both sides, as weaker oil prices are negatively influencing commodity-linked currencies, while broadly muted the US dollar also remains unable to provide enough of impetus to knock the pair out of its consolidative pattern. Overall, the market will stay inactive during this day in wake of upcoming New Year holiday, while US Pending Home Sales will be closely watched by investors later in NA session.

The main events of the day:
US Pending Home Sales – 17.00 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.0419 R. 1.0481
USDJPY S. 116.79 R. 117.93
GBPUSD S. 1.2218 R. 1.2310
USDCHF S. 1.0244 R. 1.0314
AUDUSD S. 0.7160 R. 0.7208
NZDUSD S. 0.6865 R. 0.6915
USDCAD S. 1.3490 R. 1.3622

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