Currency market. EUROPEAN session review: Draghi said nothing new

Data released: 

09:30 GMT UK Goods Trade Balance (Oct) £-9.732B £-9.350B £-10.099B 

09:30 GMT UK Total Trade Balance (Oct) £-2.619B _ £-2.644B 

09:30 GMT UK Trade Balance; non-EU (Oct) £-3.254B £-3.600 £-3.892B 

09:30 GMT UK Industrial Production (YoY) (Oct) 3.2% 3.2% 2.2% 

09:30 GMT UK Industrial Production (MoM) (Oct) 0.4% 0.3% 0.9% 

09:30 GMT UK Manufacturing Production (MoM) (Oct) 0.4% 0.4% 1.2% 

09:30 GMT UK Manufacturing Production (YoY) (Oct) 2.7% 2.9% 0.7% 

European Central Bank President Mario Draghi in Rome said nothing new. He noted that central bank's should focus on price stability. Generally, his speech concerned to bank system stability. 

EURO 

With the ECB’s Mersch on Monday displaying no near term intent by the central bank to engage in further monetary accommodation, the EUR-USD may find enough resources to test towards the 1.3800 ceiling in the near term. 

EUR/USD trades around $1.3750. Above resistance comes at $1.3830 (Oct 25 high). Below $1.3710 support is around recent low $1.3620 ahead of $1.3600. 

POUND 

The pound was supported by economic releases after an industry report showed a gauge of U.K. house prices rose to the highest in more than a decade last month. The Royal Institution of Chartered Surveyors’ house-price index increased to 58, the highest since June 2002, from 57 in October. 

Data showed the UK trade deficit narrowed to £9.732 billion in October from £10.09 billion, although it came in short of estimates at £9.35 billion. Further data showed that Industrial Production gained 3.2% year-on-year while the Manufacturing Production grew 2.7% YoY, vs. forecasts at 3.2% and 2.9%, respectively. 

GBP/USD rose to $1.6465 with resistance now comes at $1.6520 and $1.6625 (August’2011 highs). Currently support comes at $1.6400. Below losses may widen to $1.6340 (Nov 12 lows). 

YEN 

According to reports, Japan policymakers are likely to agree on an upgrade to the short term economic assessment later this month, however it’s believed they are not in agreement over the longer term outlook for growth and inflation. 

The BOJ policy meeting is early Thursday morning on the 19th and a few hours after the FOMC. 

USD/JPY dropped after testing Y103.40 (Dec 3 highs) and now trades near support at Y102.80. Stronger support comes at Y102.00 (channel line from Nov 7). A break above Y103.40 opens the way up to Y103.70 (May 22 highs). 

DATA AHEAD: 

At 15:00 GMT UK Oct Wholesale Inventories are due to come. 

Later in the evening, at 23:30 GMT Australia reports Dec Westpac Consumer Confidence, while Japan brings Oct Machinery Orders at 23:50 GMT.

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