EUR/USD hovers around 1.07, awaits US data
The EUR/USD is trading in the sideways manner around 1.07 as investors await US CPI data and Yellen speech.The currency pair rose to a high of 1.0720 on Tuesday; its highest since December 8, on the back of broad based USD weakness.The consumer price index (CPI) is seen improving to 2.1% annually from the last reading of 1.7%. The core figure is expected to tick up to 2.2% from the prior 2.1%. A strong headline figure may do little to help the battered US dollar, as much of the rise in the headline figure is likely to be fuelled by an uptick in the energy prices. However, an uptick in core inflation could offer support to the US dollar. Yellen speech due later today during the market hours could include comments on the monetary policy outlook. In the meantime, German and Eurozone CPI release could receive little attention from the markets, unless the final print shows a significant deviation from the preliminary numbers. A break above the previous day?s high of 1.0720 could yield a rally to 1.0768 (Dec 7 high), above which the psychological level of 1.08 could be put to test. On the other hand, a breakdown of support at 1.0685 (Jan 12 high) would expose support at 1.0652 (5-DMA) and 1.0627 (Jan 10 high).

GBP/USD consolidates 4 big figures UK May & Trump-led rally
The GBP/USD pair embarks upon a corrective mode on Wednesday, after having faced fresh offers at 50-DMA, as the bulls consolidate the recent massive upsurge.GBP/USD surrenders 1.24 handle and now looks to stabilize around the mid-point of 1.23 handle amid renewed USD buying, as the treasury yields attempt minor-recovery from yesterday?s steep drop sparked by Trump?s comments on recent USD appreciation. On Tuesday, the cable witnessed a solid 400-pips comeback from ahead of 1.20 handle, mainly helped by the UK PM May?s strong and clear talks on Brexit, while Trump?s warning over a stronger yuan, particularly against the Yuan, provided extra legs to the GBP rebound. Attentions now turns towards a fresh batch of critical US economic data due to be reported in the NA session, following the release of the UK jobs data. In the US, we have the CPI and industrial production up on the sleeves. Besides, Fed speaks, including Yellen?s, will also grab the eyeballs. In terms of technical levels, upside barriers are lined up at 1.2401 (50-DMA), 1.2415/29 (weekly high/ 100-DMA) and 1.2500 (zero figure). While supports are aligned at 1.2300 (round figure) and 1.2281 (daily pivot) and below that at 1.2249 (20-DMA).

USD/JPY ends 7-day losing streak, regains 113 ahead of US CPI
The bulls were rescued by a bounce witnessed in the greenback across the board, lifting USD/JPY from fresh six-week lows struck at 112.57 in Asia opening trades today.The spot was last seen exchanging hands at 113.09, up +0.40% on the day, and hovering close to session highs reached at 113.14 last hour. The major is back on the bids this Wednesday, as the bulls fought back control and brought an end to a week-long run of losses, with the move prompted by a corrective rally staged by the US dollar against its six major peers in wake of a recovery in the treasury yields after yesterday?s Trump?s comments induced massive slump.Markets now eagerly await the US CPI figure to gauge next direction in the major. The consumer price index (CPI) is expected to rise to 2.1% annually from 1.7% last. The core figure is expected to tick up to 2.2% from the prior 2.1%. Apart from the data, Fed Chair Yellen?s speech could also have a significant impact on the spot.The major finds immediate resistance at 113.50 (psychological levels). A break above the last, the major could test 113.74 (5-DMA) and 114 (zero figure) beyond the last. While to the downside, the immediate support is seen at 112.57 (6-week low) next at 112.04 (daily S1) and below that at 111.58 (Nov 29 low).

GBP/JPY drops ahead of UK wage growth data
GBP/JPY faced rejection at 140.15 (38.2% of 126.70-148.46) in the late North American session and dropped to 139.50 levels in Asia. The UK data due for release later today is expected to show the average earnings including bonus ticked higher to 2.6% in three months to November. Meanwhile, the unemployment rate is seen rising to 4.9% from 4.8%. The British Pound is heading into the data release on a strong footing, courtesy of UK PM May?s ?Hard Brexit? talk on Tuesday. A strong wage growth figure could yield a break above 140.15 levels. A break above 140.15 (38.2% fib) would open the doors to 140.54 (10-DMA) and then to 141.30 (50-DMA). On the lower side, a breach of 139.16 (5-DMA support) could yield a sell-off to 138.52 (Nov 29 low). A violation there would expose strong support at 137.58 (50% fib).

EUR/JPY capped below 121 handle ahead of CPIs
The EUR/JPY cross clings onto recovery gains so far this session, having halted two back-to-back sessions of losses amid a rebound staged by USD/JPY. The EUR/JPY pair now gains +0.20% to trade at 120.88, unable to chew offers lined up just below 121 handle. The recovery in EUR/JPY fails to garner some support, as gains from a higher USD/JPY is partly offset by the EUR/USD retreat, in wake of broad based US dollar rebound from Trump?s comments-led massive sell-off seen yesterday.Next of relevance for the cross remains the inflation figures due on the cards from Germany, Eurozone and US, with the US CPI report closely eyed as we head towards the Trump?s inauguration later this week. EUR/JPY: Higher side: 121.19 (5-DMA), 121.80 (10 & 50-DMA) and Lower side: 120.29 (daily S1), 119.37 (Nov 30 low)


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