Currency market. EUROPEAN session review: Euro is under pressure

Data released: 

08:15 GMT Switzerland Employment Level (QoQ) (Q3) 4.196M 4.197M 4.166M 

09:30 GMT UK BBA Mortgage Approvals (Oct) 42.8K 45.2K 43.2K 

Iran was a big focus for investors after the country agreed to an historic agreement in which it will stop producing near-weapons grade nuclear fuel and remove its stockpile of the fissle material, in exchange for an ease on Western economic sanctions. The deal doesn’t include any easing of sanctions on Iran’s crude, but the European Union will lift a ban on insurance for tankers transporting Iranian oil. It could also head off further sanctions on Iranian crude, news which weighed heavily on crude prices on Monday. 

EURO 

The euro weakens versus the dollar. ECB’s Noyer said deflation risks could prompt further rate cuts. Experts Societe Generale noted negative rates in Europe only if deflationary pressure persists.

EUR/USD weakened to $1.3520 with initial resistance comes at $1.3580 (Nov 19 highs). Above $1.3600 resistance placed at $1.3620 (61.8% Fibo of the $1.3830 - $1.3300 decline). Now support comes at $1.3480 (50% Fibo of Thursday’s lows), $1.3400/90 (Nov 13 lows) and $1.3300/90 (Nov 7 lows). 

POUND 

The pound weakened following disappointing UK housing data. UK mortgage approvals fell to 42.8K in October, missing expectations of a 45.2K reading. 

GBP/USD trades a bit lower $1.6200 (phycological level), off Friday’ s high on $1.6240 (initial resistance). Initial support is around $1.6140 (channel line from Nov 11), then - at $1.6070 (Nov 21 lows) and $1.5900/90 (Nov 14 lows). 

YEN 

Japan’s yen stretched losses against the U.S. dollar Monday, with the greenback heading toward the ¥102 mark after the Federal Reserve last week indicated it may be ready to pull back on monetary stimulus soon. 

USD/JPY challenged Y101.90 (channel resistance line from Nov 7) and retreated. Above resistance comes at Y102.40 (May 28 high) and Y103.70 (May 22 highs). Initial support comes at Y101.30 (Thursday’s highs), then - at channel line on Y100.50. 

DATA AHEAD: 

At 15:00 GMT US Oct Pending Home Sales come with 2.0% m/m expected after -5.6% month earlier.
At 22:00 GMT RBA Deputy Governor Lowe Speaks.
At 23:50 GMT BoJ Monetary Policy Meeting Minutes will be released.

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