Currencies
EUR/USD – has moved up to reach close to the resistance around the 1.046 level. It looks like the USD has trouble around these levels which is around a 14 year low. That is not surprising as we have seen quite a sharp decline, and people also want to lock in their profits ahead of the holidays. Nevertheless, if you expect that parity will be reached, any rise would be a good opportunity to enter at more comfortable levels.
USD/JPY – is moving up again as it is trying to pare its relatively small drop of yesterday. At the moment we are seeing that there is resistance around the 118.63 level and below that support around the 116.47 level. We will be waiting to see if the US data later today will be able to push us through one of these levels.
GBP/USD – is still pulling down and came close to testing the support around the 1.23 level again yesterday and looks to be moving to that direction again today. The fact is that while the GBP has been able to consolidate after the Brexit vote and the October flash crash, mainly due to better economic data than expected which led the BOE to not cut the interest rate again after the initial cut after the Brexit vote, there are still serious doubt on how the British economy will digest the Brexit. In addition, economic data is also showing a slowdown in some important sectors. Today we will get some more economic data out of the UK as well.
USD/SEK – dropped sharply after the Swedish Central Bank surprisingly decided to increase its QE program. However, the Swedish Central Bank does expect the SEK to strengthen.
Bitcoin – while yesterday we were still relatively far away for Bitcoin to double its value in 2016, with the jump of yesterday $35 we are now really within striking distance of doing exactly that.
Indices
Dow Jones 30 – it looks like we have to wait a little bit longer to cross the 20,000 level, although we remain trading relatively close to that level.
S&P 500 – dropped without any specific reason, but it could very well be that people are taking their profits after the recent uptrend and are using the money to buy some nice holiday presents.
Commodities
Gold – is moving slightly up as is remains close to the support around the 1123 level. The US data due later today could prove to be an important factor deciding if we drop below this level or not, especially with trading volumes which are declining due to the upcoming holidays.
Silver – is heading down again and could very well test the support around the 15.7 level again.
Oil – and once again there was a large discrepancy between the API data which showed a decline of over 4 million barrels, while the EIA data showed a build of just over 2 million barrels. Last week it was exactly reverse. When the data was released we saw oil move down immediately, and this is continuing. Production saw a slight decline, but this was not a huge was, only 10K bpd.