USD Dollar (USD) – The US Dollar weakened versus most majors on Friday’s trading after weaker than expected Existing Home Sales. Existing Home Sales in the US came out with 4.61M lower than the 4.65M expected. Speculation regarding a 3rd QE program in April helped weaken the Dollar. The NASDAQ was almost unchanged with a -0.06% decline and the Dow Jones gained by 0.76%. Crude Oil declined by -2.20%, closing at $98.33. Gold (XAU) gained by 0.57% closing at $1,664 an ounce. No economic data is expected today.
Euro (EUR) – The Euro declined on Friday’s trading as investors closed positions before the verdict regarding Greece’s bond swap agreement. The Euro was still supported by successful bond auctions in Spain and France, but investors decided to cash in their profits from the rally due to upcoming Greek bond swap negotiations. Stock exchanges in Europe finished with small declines, the DAX30 declined by -0.18% and the CAC40 declined by -0.22%. The EUR/USD trend remains bearish in the long term but the current retracement could continue higher. A cross above the 1.30 mark could lead to a rally upwards. Today, the Consumer Confidence is expected with -20 versus -21 previously. Developments regarding Greece’s Bond Swap agreement are likely to be the center of attention.
EUR/USD – Last: 1.2870
| Resistance | 1.2950 | 1.3000 | 1.3060 |
| Support | 1.2840 | 1.2800 | 1.2750 |
British Pound (GBP) – The British Pound rallied versus the US Dollar and the Yen as Retail Sales rebounded in December, adding demand for the Pound. Retail Sales came out with 0.6% as expected. The FTSE 100 declined by -0.22% to 5,728.55. The GBP/USD continues to be bullish as long as it remains above the 1.55 support level. The pair is facing strong resistance around the 1.57 and 1.5750 levels. Today MPC Member, Posen, will speak in Nottingham.
GBP/USD – Last: 1.5550
| Resistance | 1.5580 | 1.5630 | 1.5700 |
| Support | 1.5500 | 1.5450 | 1.5400 |
Japanese Yen (JPY) – The Yen finished stronger versus the Dollar and the Euro and weaker versus other majors. Demand for the safe haven of the Yen has been on a decline during the past week. Lower existing home sales in the US and the closing of positions against the Euro made the Yen stronger versus the Dollar and Euro. Technically, the USD/JPY has been trading in a channel between 76.60 and 77.30, located near a strong support level according to the daily chart at 76.60. The BOJ will release its interest rate decision overnight, which is expected unchanged at 0.10%.
USD/JPY – Last: 76.95
| Resistance | 77.30 | 78.05 | 78.50 |
| Support | 76.60 | 76.00 | 75.55 |
Canadian Dollar (CAD) – The Canadian Dollar weakened versus the US Dollar snapping a 4 day winning streak as inflation slowed. The Canadian CPI declined by -0.6% versus the -0.1% expected, weakening investors expectations for a near interest rate hike in Canada. The Core CPI declined by -0.5% versus -0.2% previously and Wholesale Sales dropped by -0.4% versus -0.8% previously. The USD/CAD is on a downtrend with a strong support around the 1.0075 level. Today, the Leading Index is expected with 0.6% versus 0.8% previously.
USD/CAD – Last: 1.0135
| Resistance | 1.0160 | 1.0200 | 1.0275 |
| Support | 1.0100 | 1.0075 | 1.0050 |
