• USD weaker against all of its major counterparts with the exception of the NZD. Today’s price action looks to be corrective in nature as the dollar retraces yesterday’s gains. Economic data was slightly positive with weekly initial jobless claims came in at 390K from the prior 400K and the Sept. trade deficit narrowed to $-43.1B from $-44.9B. US stock futures are currently up over +1.00% suggesting a positive start to the session and 10-year Treasury yields are back above 2.00%. The Dollar Index was rejected above 78.00 and trades back inside of its daily cloud with the Kijun line coming in just above 77.00 to provide near term support.
• EUR rebounding after a solid Italian auction and news that the ECB was said to be buying Italian bonds. Greece has named Lucas Papademos as the interim PM which provided more clarity to the political situation. Italian 10-year yields have eased and are back below 7% - currently around 6.83%. European bourses are trading in the black today with the DAX currently up about +1.61% and Euro Stoxx 50 up around +1.43%. EUR/USD is higher after making session lows under the 1.35 figure and sees the bottom of the daily ichimoku cloud around the 1.36 area which is likely to be a pivotal zone.
• JPY mostly softer as the selloff in risky assets takes a breather. The Oct. household consumer confidence held steady at 38.6 and machine tool orders rose by 25.9% y/y from the prior reading of 20.1%. USD/JPY is drifting lower, currently trading below the 100-day SMA, however a daily close below is needed to signal further technical weakness.
• GBP relatively weak as the BoE makes no change in policy. Interest rates are maintained at 0.50% and asset purchases at 275B. Of the G10 currencies, the pound is stronger only against the buck and the kiwi. GBP/USD rallying after the 1.59 area held as near term support and the pair sees a cluster of hourly simple moving averages just above the key 1.60 big figure.
• CAD firmer on the back of higher equities and higher oil and positive trade data. WTI crude is up around +1.37% at the time of writing. USD/CAD is back below the 1.02 figure after briefly trading above recent range highs. The pair remains within its daily cloud. On the data front, Sept. international merchandise trade figures came in much better than forecast with a surprising surplus of +1.25B. The market was anticipating a widening deficit of -0.56B from the prior -0.49B.
• NZD underperforming after weak data. The Oct. business PMI fell to 46.5 from 50.5, Nov. consumer confidence declined by -2.9% to 109.0 from the prior 112.2. NZD/USD made session lows of around 0.7735 and has since rebounded. The pair sees the 21 and 200-day SMA’s converge around 0.7980/90 and has acted as formidable resistance on recent tests.
• EUR rebounding after a solid Italian auction and news that the ECB was said to be buying Italian bonds. Greece has named Lucas Papademos as the interim PM which provided more clarity to the political situation. Italian 10-year yields have eased and are back below 7% - currently around 6.83%. European bourses are trading in the black today with the DAX currently up about +1.61% and Euro Stoxx 50 up around +1.43%. EUR/USD is higher after making session lows under the 1.35 figure and sees the bottom of the daily ichimoku cloud around the 1.36 area which is likely to be a pivotal zone.
• JPY mostly softer as the selloff in risky assets takes a breather. The Oct. household consumer confidence held steady at 38.6 and machine tool orders rose by 25.9% y/y from the prior reading of 20.1%. USD/JPY is drifting lower, currently trading below the 100-day SMA, however a daily close below is needed to signal further technical weakness.
• GBP relatively weak as the BoE makes no change in policy. Interest rates are maintained at 0.50% and asset purchases at 275B. Of the G10 currencies, the pound is stronger only against the buck and the kiwi. GBP/USD rallying after the 1.59 area held as near term support and the pair sees a cluster of hourly simple moving averages just above the key 1.60 big figure.
• CAD firmer on the back of higher equities and higher oil and positive trade data. WTI crude is up around +1.37% at the time of writing. USD/CAD is back below the 1.02 figure after briefly trading above recent range highs. The pair remains within its daily cloud. On the data front, Sept. international merchandise trade figures came in much better than forecast with a surprising surplus of +1.25B. The market was anticipating a widening deficit of -0.56B from the prior -0.49B.
• NZD underperforming after weak data. The Oct. business PMI fell to 46.5 from 50.5, Nov. consumer confidence declined by -2.9% to 109.0 from the prior 112.2. NZD/USD made session lows of around 0.7735 and has since rebounded. The pair sees the 21 and 200-day SMA’s converge around 0.7980/90 and has acted as formidable resistance on recent tests.
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