Currency market. EUROPEAN session review:

Data released:

06:45 GMT Switzerland Gross Domestic Product (YoY) (Q3) 1.9% 1.7% 2.5% 

06:45 GMT Switzerland Gross Domestic Product s.a. (QoQ) (Q3) 0.5% 0.4% 0.5% 

07:00 GMT Germany Import Price Index (MoM) (Oct) -0.7% -0.5% 0.0% 

07:00 GMT Germany Import Price Index (YoY) (Oct) -3.0% -2.8% -2.8% 

08:55 GMT Germany Unemployment Change (Nov) 10K 1K 3K 

08:55 GMT Germany Unemployment Rate s.a. (Nov) 6.9% 6.9% 6.9% 

09:00 GMT EMU M3 Money Supply (3m) (Oct) 1.9% _ 2.2% 

09:00 GMT EMU M3 Money Supply (YoY) (Oct) 1.4% 1.9% 2.0% 

09:00 GMT EMU Private loans (YoY) (Oct) -2.1% -1.8% -2.0%

10:00 GMT EMU Consumer Confidence (Nov) 15.4 -15.4 -14.5 

10:00 GMT EMU Business Climate (Nov) 0.18 0.03 -0.08 

The euro popped to its best level in a month against the dollar on Thursday. 

Wednesday the euro was supported by news from Germany, when Chancellor Angela Merkel reached a coalition agreement with the Social Democrats. The pact put her on track for a third term leading Europe’s biggest economy until 2017. It also means Merkel will continue her European policies including a rejection of joint liability for euro-area nations’ debt.

EURO

The euro managed to rise Thursday after the economic activity in Spain expanded 0.1% inter-quarter and contracted at an annual pace of 1.1%, bettering Q2’s -0.1% and -1.6%, respectively. Still in Spain, consumer prices gauged by the flash HICP rose 0.3% on a yearly basis for the month of November, surpassing the median and previous print at 0.0%. 

Later the euroe retreated after the unemployment change in Germany increased by 10K in November, exceeding the 3K forecasted and up from October’s 1K increase, while the jobless rate remained unchanged at 6.9%. 

EUR/USD consolidates below $1.3600. Above $1.3600 resistance placed at $1.3620 (61.8% Fibo of the $1.3830 - $1.3300 decline). Now initial support is around $1.3520, then - 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 strengthened for a third day against the dollar as signs the U.K. economy is improving boosted demand for the currency before the central bank releases its outlook for financial-sector stability.

GBP/USD holds at session highs on $1.6340 (also Jan 2 highs). Strong resistance comes at $1.6386/90 (channel resistance line from Nov 12). Initial support is arpound recent lows on $1.6260, then - at $1.6200 (channel line) and $1.6070 (Nov 21 lows).

YEN

The yen continues to go down versus the dollar.

USD/JPY holds near Y102.10. Above resistance comes at Y102.70 (channel resistance line from Nov 7), extending to Y103.70 (May 22 high). Initial support comes at Y101.30 (Thursday’s highs), then - at channel line on Y101.00.

DATA AHEAD:

Japat releases at 23:30 GMT CPI data, Unemployment Rate and preliminary data on Oct Industrial Production.

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