Daily Market Review - 12/20/2013

Technical Analysis

EUR/USD

After recent dip outside the range 1.3709-1.3811 a couple of days ago the Euro continues to be under pressure. Immediate outlook is bearish. Support for the pair could be found around 1.3620, from where it could rebound upwards.

USD/JPY

The Pair continues to appreciate quite steadily. A lot will depend on the outcome of the Bank of Japan meeting today. If there are no crucial changes, the bias will remain bullish in the short run and uncertain in longer perspective.

GBP/USD

Evidently a bounce, that followed the decline, is over. And the Pound is correcting a bit, though down slanting trend line has a flatter slope. So the trend is not as strong. The pattern is also less volatile than a few days ago.

Market Overview

Recently the US Dollar has strengthened its positions against the main rivals. Investors were still under influence from reduction of FRS stimulating program. Profitability of 10 year US bonds has increased against such background, what supported demand on the US currency. There were data published in Britain on retail sales in November. The report came out worse than forecasted, and didn't trigger strong reaction of British currency.

The pair has been fluctuating within the range 1.6334-1.6395. The USDJPY caught its breath after a vigorous growth. In the absence of statistics from Japan investors have focused on stock market. Therefore the pair saw a consolidation of its rate.

At the end of the week we as usual have an abundance of various market events. Some of them are worse to take a look at. Today there is a press conference of the Bank of Japan. Decision on interest rate is supposed to be made. The forecast suggests the rate will stay the same level without any change in comparison to the previous one. Also the BoJ is expected to comment on its monetary policy in December.

In Europe there is GfK German Consumer Clime index in focus. Here the forecast coincides with a previous figure as well. In Britain we have essential index: GDP of the state. To round it off, in North America we have Core Retail Sales from Canada and the US GDP. Both indices are anticipated to remain unaltered. Obviously any deviation from the forecasts will push the market in a corresponding direction.

Economic calendar