Published On: Sun, Jan 7th, 2018

USD Falls Against All Pairs Except The Yen

For January 8th to 12th, 2018

The currency reached a new three-month high . The Friday’s US figures disappointed. The Non-farm payrolls rose by 148K in December, compared to the creation of 252K posts a previous month that was revised up from the initial gain of 228K. The data missed the forecasts for the creation of 190K jobs. However, the matched expectations of 4.1%. advanced 0.3%, in line with forecasts and compared to the prior 0.1%.

In the upcoming , we will focus on the US Inflation reading. As inflation is one of the two pillars of Fed’s dual mandate, the market will seek a hint out of next Fed moves. Market consensus for the data to be released on Friday and it is expected to come out 0.2% m/m and y/y inflation is expected to ease to 2.1% in December from 2.2% a month ago. On the other hand, is expected to remain stable to 1.7% from a month earlier.

Additionally, US growth in December will be another important data release of this week. excluding auto and gas are expected to ease to 0.4% m/m from 1.0% a previous moth growth. Acceleration in headline inflation and retail sales may prompt investors to price further rate hikes from Fed hence push DXY and bond yields higher. Conversely, a worse than expected realization would soothe market concerns and support EM economies.

The EUR/USD closed last week above the main support level of 1.2020. As long as the price sustains above 1.2020, on a daily basis, the bullish action is most likely dominate and we will follow 1.2075 and 1.2110. Moreover, in order for the rise accelerate, it needs to go beyond 1.2110.On the other hand, If the price drops below 1.2020, next support levels can be found at 1.1965 and 1.1860

Support: 1.2020 – 1.1965 – 1.1860

Resistance: 1.2075 – 1.2110 – 1.2200

: UK for November will be announced on Wednesday. The Data is expected to increase to 0.3% from 0.1% in the preceding month. Any strengthening in the index amid Brexit concerns would be considered positive for the British economy.

The GBP/USD pair closed last week above the 1.3555 key support level. As long as the pair trades above 1.3555, on a four-hourly basis, the rise may continue and we will watch 1.3632 as a daily resistance level. Moreover, In order for the rise accelerate, it needs to rise and sustain above 1.3632, on a daily basis. Otherwise, If the price drops below 1.3555, the next support level will be at 1.13485

Support: 1.3555 – 1.3485 – 1.3432

Resistance: 1.3632

: The greenback traded lower against all of the major currencies except the yen. The gained more value versus the yen last week. In the event that upward movement continues above 112.94, we will watch the key resistance level at 113.63. Although, if the price falls below 112.94, the next support level will stand at 112.46 again.

Support: 112.94 – 112.46 – 112.08

Resistance : 113.63 – 114.11 – 114.63

: The Gold price has been rising for four weeks. As long as the price trades above 1307, on a daily basis. the bullish action is most likely dominate. At this point, the daily resistance level will be at 1367. On the other hand, if the price drops below 1307, we will face the 1291 next support level.

Support: 1307 – 1291 – 1283

Resistance: 1367

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