Currency market. EUROPEAN session review: Dollar trades mixed

Data released: 

07:00 GMT Germany Consumer Price Index (YoY) (Nov) 1.3% 1.3% 1.2% 

07:00 GMT Germany Consumer Price Index (MoM) (Nov) 0.2% 0.2% -0.2% 

07:00 GMT Germany Harmonised Index of Consumer Prices (MoM) (Nov) 0.2% 0.2% -0.3% 

07:00 GMT Germany Harmonised Index of Consumer Prices (YoY) (Nov) 1.6% 1.6% 1.2% 

07:45 GMT France Current Account (Oct) €-2.1B _ €-3.6B 

The dollar trades mixed as investors awaited for accord between U.S. lawmakers to limit automatic spending cuts and avoid a government shutdown. 

Investors are considering when the Federal Reserve, which meets next week, may reduce the pace of its monthly bond buying. Range of expectations of starting tapering is from December to March. 

EURO 

The euro compesated morning losses. 

In the data space, the final November inflation figures in Germany left no room for surprises, coming in at 0.2% inter-month and 1.3% on a yearly basis. 

Further results showed that the French Current Account deficit narrowed to €2.1 billion in October from €3.6 billion previous. 

EUR/USD trades near $1.3760. Above resistance comes at $1.3830 (Oct 25 high). Initial support is around $1.3720 with a break below opens the way to support near $1.3620 ahead of $1.3600. 

POUND 

October industrial production numbers posted no surprises with a 0.4% m/m increase but the pound continued to derive mileage from somewhat encouraging comments from the BOE’s Carney from late Monday. 

GBP/USD dropped to $1.6380. Below losses may widen to $1.6340 (Nov 12 lows).The resistance comes at $1.6520 and $1.6625 (August’2011 highs). 

YEN 

The yen rebounded from near a six-month low against the dollar as a decline in Asian stocks fueled demand for the currency as a haven, and amid speculation that its decline has been too rapid. 

USD/JPY stays around Y102.40. Initial support comes at Y102.00. Resistance is around Y103.40 (Dec 3 highs) with a break above opens the way up to Y103.70 (May 22 highs). 

DATA AHEAD: 

At 15:00 GMT US Treasury Sec Lew Speaks. 

At 15:30 GMT EIA reports Crude Oil Stocks change for Dec 6 week. 

At 20:00 GMT New Zealand issues Monetary Policy Statement and announces its Interest Rate Decision with 2.5% expected (unch).

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