Euro rising above 1.24 and Gold is touching the 1366 level
Thursday witnessed no major economic releases over the last few hours, so traders in the Asian session were preoccupied with the pricing in themes from the prior sessions.
New Zealand CPI rose 0.1% QoQ, 1.6% YoY in Q4, much weaker than the expectation of 0.4% QoQ, 1.9% YoY.
With no fresh releases to digest, Asian traders main focus were on catching up to their US counterparts in the dollar sell-off. During Wednesday, European session, US Treasury Secretary Steven Mnuchin dragged the dollar lower by indicating that a weaker currency is favorable for the economy’s trade opportunities.
As for the North American session, a group of minor reports from the US didn’t inspire much confidence in the greenback, so the dollar sells off continues as a result.
Currently, the greenback is seen as trading weak as the bear party is still in sessions, with the only explanation for the currency’s recent weakness is that global central banks would be starting to follow Fed’s path of tightening. That reason alone kept the dollar at Bay ahead of the ECB meeting.
The strengthening Yen had a negative impact on the Nikkei, who is currently reflecting concerns over an escalating trade war between the world’s top economies as well as profit taking, which dragged the Chinese indices lower.
As for commodities, the dollar’s weakness turned out to be a boon for oil prices, in addition, it didn’t hurt that a report by the US Energy Information Administration revealed a drawdown in crude oil inventories.
German IFO expectations are being released today. The figure saw a sharp decline in the release from 117.5 in November to 117.2 in the December release.
EURUSD is expected to find support at 1.2370, and a fall through could take it to the next support level of 1.2330. The pair is expected to find its first resistance at 1.2450, and a rise through could take it to the next resistance level of 1.2490.
EURUSD: EUR/USD’s rally is still in progress and reaches as high as 1.2440 so far today.
GBPUSD: GBP/USD’s rally extends to as high as 1.4300 so far today.
USDCAD: Intraday bias in USD/CAD remains on the downside.
USDCHF: Intraday bias in USD/CHF remains on the downside for further fall.
USDJPY: USD/JPY drops to as low as 108.90 so far. Intraday bias remains on the downside for 107.30 low.
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