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By XE Market Analysis December 23, 2014 5:53 am
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    XE Market Analysis: North America - Dec 23, 2014

    The dollar was relatively steady versus major currencies overnight, but notably, USD-JPY held the 120 handle through the session, after breaking higher in early Asian trade. EUR-USD maintained a heavy tone as well, though was unable to make fresh downside lows under 1.2220. Cable dipped toward 1.5550 on downward revised GDP data, while USD-CAD was steady between 1.1610-30, as oil prices stabilized, albeit at lower levels. The U.S. calendar will be of interest this morning, with GDP revisions, personal income, consumption and durables data all on deck.

    [EUR, USD]
    EUR-USD was capped into the 1.2250 region in London trade, though was unable to make fresh downside headway, finding a base at 1.2223. Concerns over Greek elections may impact euro sentiment this morning, and we continue to look for a test of the July 2012 low of 1.2134. Incoming U.S. data could weigh as well, with upgraded GDP revisions seen in the cards. Sell-stops are seen building now at 1.2200.

    [USD, JPY]
    USD-JPY retained the 120 handle after breaking higher in early Asian dealings, though reported Japanese exporter selling has limited gains to the 120.17 level. The positive risk backdrop should keep a floor under the pairing for the time being however, though lack of advance through the N.Y. morning session could prompt some profit taking into the London close, as books begin to be squared into the Christmas break.

    [GBP, USD]
    Cable was steady into the U.K. GDP revisions, though fell from session highs of 1.5608 to 1.5551 lows after the data. We continue to class Cable as being in a bear trend, which has been persisting since the July cycle high at 1.7192. Resistance is now marked at 1.5684 (20-day moving average) and 1.5700, and key support at 1.5541 is the near term target for now.

    [USD, CHF]
    EUR-CHF spiked toward 1.2100 from the 1.2010 area last week after the SNB implemented a negative interest rate of -0.25%. The cross has since edged lower from 1.2045 and appears set to remain in a narrow range on either side of 1.2030.

    [USD, CAD]
    USD-CAD was steady overnight, managing a 1.1610-30 trading band through the London morning session. Oil prices stabilized overnight, following Monday's sharp slide, which took some pressure off the CAD. USD-CAD selling into rallies has been a feature for the past several sessions, with interest rumored to be related to the Repsol purchase of Canada's Talisman.

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