EUR/USD keeps red near multi-year lows after US economic data
The EUR/USD pair maintained its offered tone near multi-year lows and failed to gain any respite following the US economic releases.Currently trading around 1.0415-20 region, having dropped to the lower level since Jan. 2003, the pair lacked any buying interest after US CPI print for the month of Nov. came-in to show consumer prices rose 0.2% m-o-m, matching expectations. Also the Philly Fed Manufacturing Index surprised on the upside and jumped to 21.5 for December as against expected up-move to 9.0. Meanwhile, weekly jobless claims were mostly in-line with expectations (254K) and continued to reflect the underlying strength in the US labor market. Today’s US economic data provided additional support boost to the already strong US Dollar, which continues to surge after Wednesday’s hawkish FOMC statement, and was seen restricting even a minor recovery for the major.A follow through selling pressure might continue dragging the pair further towards Jan. 2003 lows support near 1.0335 region below which the pair is likely to turn vulnerable and break through 1.0300 handle towards testing 1.0200 round figure mark support. On the upside, any recovery might now confront immediate resistance at previous support near 1.0465 region and momentum above this immediate hurdle might now be capped at 1.0500 psychological mark.
GBP/USD off session low, still weaker below 1.2500 mark
The GBP/USD pair witnessed a tepid bounce of around 25-pips from session low but maintained its bearish bias below 1.2500 psychological mark following the US economic releases.According to the data released just a while ago, the US consumer inflation, as measured by CPI, 0.2% in November, while core CPI (excluding the volatile food and energy prices) also rose 0.2%. The monthly readings were in-line with consensus estimates.Meanwhile, the Philly Fed Manufacturing Index surprisingly jumped to the highest level in two years, reading at 21.5 in December as compared to last month's 7.6. Meanwhile, the Empire State Manufacturing Index rose to a reading of 9, up from November's 1.5. Both the regional manufacturing gauges surpassed expectations and suggested optimism in wake of Donald Trump's surprise victory in the US presidential election. Adding to this, weekly jobless claims fell by 4,000 and came-in at 254K, clearly pointing to the inherent strength in the US labor market. Today's US economic data did little to hinder the US Dollar's strong bullish momentum, albeit the overall US Dollar Index has cooled off from 14-year highs touched earlier during early NA session in the aftermath of hawkish Fed statement. on Wednesday. Any recovery attempts might now confront immediate resistance at previous support near 1.2490-1.2500 region. Momentum above this immediate hurdle could get extended but is likely to be capped near 1.2535-40 resistance area. On the downside, weakness below session low support near mid-1.2400s seems to drag the pair immediately towards 50-day SMA support near 1.2415-10 region, which if broken would turn the pair vulnerable to resume with its prior depreciating move.
USD/JPY pulls back from highs after US data
USD/JPY pulled back slightly from recent 10-month highs following the latest string of US data.USD/JPY slid back below the 118.00 mark, although the downside remained contained by the 117.65 area. At time of writing, the pair is trading at 117.75, still up 0.63% on the day, after climbing over 350 pips on the back of Fed’s decision the previous day.Data showed US consumer price index and core prices, both increased 0.2% in November matching expectations. Year-on-year prices rose 1.7% and 2.1% respectively. Meanwhile, US jobless claims fell to 254,000 in the week ended Dec 10, marking the 93rd week below 300,000.On Wednesday, the Federal Reserve decided to raise the target range for the federal funds rate to 0.5-0.75%. While the move was highly anticipated, the dollar strengthened as the dot plot showed most members expect three hikes throughout 2017 versus two hikes seen in September’s meeting. As for technical levels, next resistances could be found at 118.65 (Dec 15 high), 119.00 (psychological level) and not much till 120.00/03 (psychological level/Feb 3 high). On the other hand, supports are seen at 117.00/116.99 (psychological level/Dec 15 low), 116.11 (Dec 12 high) and 114.76 (Dec 14 low).
USD/CHF reclaims 1.0300 handle, hits fresh yearly high
Having surged to its highest level since Nov. 2015, the USD/CHF pair retreated few pips and is currently hovering around 1.0300 handle.The pair on Thursday gained further traction on Thursday and added on to overnight break-out momentum, led by hawkish Fed, after SNB Chairman Thomas Jordan commented on possibilities of another rate cut and showed willingness to intervene in the FX markets to halt any significant appreciation of the Swiss Franc.Adding to this, the prevalent bullish sentiment surrounding the US Dollar, especially after yesterday’s FOMC decision to raise its key lending rate and upgraded economic outlook for 2017, is also contributing to the pair's strong up-surge to fresh yearly highs.Focus now shift to US economic docket, featuring the release of inflation data, Philly Fed Manufacturing Index and usual weekly jobless claims data, due in a short while from now.Immediate downside support is now seen at previous resistance near 1.0255-50 region below which the pair is likely to witness an additional profit taking slide towards 1.0210-1.0200 region. On the upside, momentum above Nov. 2015 highs resistance near 1.0325 region now seem to pave way for continuation of the pair's upward trajectory towards its next major hurdle near 1.0400 round figure mark.
EUR/GBP moves off lows as BoE stays put
EUR/GBP managed to take back some losses over the last minutes, as the pound weakened across the board following BoE decision to stay on hold.As expected, the Bank of England decided by unanimous vote to leave the Bank Rate at 0.25% and to keep the QE programme at £435 billion.EUR/GBP bounced from a 10-day low of 0.8329 and it was last trading around 0.8360, still 0.25% lower on the day.As for technical levels, next supports are seen at 0.8329 (Dec 15 low), 0.8304/05 (Dec 5 low/200-day SMA) and 0.8249 (Jul 14 low). On the flip side, resistances could be found at 0.8412 (10-day SMA), 0.8463 (21-day SMA) and 0.8571 (Dec 8 high).
Gold hits 10-1/2 month low amid surging bond yields and USD
Gold extended its recent bearish slide and has now dropped to hit its lowest level since early February in the aftermath of hawkish Fed statement.Currently trading around $1138, Wednesday's FOMC decision to raise its key lending rate and upgrade forecast for 2017 sparked a rally in US Treasury bond yields and is weighing heavily on the non-yielding precious metal. The policymakers now projected three interest-rate hikes in 2017 as compared to previously forecasted two. Hawkish outlook also trigger a greenback rally across the board, with the overall US Dollar Index hitting a fresh 13-year highs, and is exerting further selling pressure around dollar-denominated commodities, including gold.Immediate support on the downside is seen at $1125 level below which the commodity seems vulnerable to head towards testing $1108 support (Jan. 29 low). On the upside, $1140 level now becomes immediate resistance, which is closely followed by resistance near $1145 region and $1150 level.
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