Currency market. EUROPEAN session review: Dollar roee

Data released: 

06:45 GMT Switzerland SECO Economic Forecasts 

07:00 GMT Switzerland Trade Balance (Nov) 2,112M _ 2,282M 

09:00 GMT EMU Current Account s.a (Oct) €21.8B €14.2B €14.9B 

09:00 GMT EMU Current Account n.s.a (Oct) €26.2B €6.8B €15.2B 

09:30 GMT UK Retail Sales (MoM) (Nov) 0.3% 0.3% -0.9% 

09:30 GMT UK Retail Sales (YoY) (Nov) 2.0% 2.3% 1.8% 

09:30 GMT UK Retail Sales ex-Fuel (MoM) (Nov) 0.4% 0.3% -0.7% 

09:30 GMT UK Retail Sales ex-Fuel (YoY) (Nov) 2.3% 2.5% 2.3% 

Main currencies continue to fall, as the greenback extended its gains on the back of the Federal Reserve’s long-awaited taper announcement. 

EURO 

The euro remains under pressure after yesterday’s Fed’s decision. 

EUR/USD trades near support at $1.3660 (Wednesday’s lows). Below support comes at $1.3620/15 (channel line from Nov 7) and $1.3600. Initial resistance is around $1.3810 (Dec 11 and 18 highs), extending to $1.3830 (Oct 25 highs). 

POUND 

In UK national statistics informed on Thursday that year-over-year UK Retail Sales grew 2% in November, compared with the 1.8% increase in October and below forecasts of +2.3%. On a monthly basis UK Retail Sales rose 0.3% in October, after falling 0.9% in September, as expected. 

Annual Retail Sales excluding Fuel increased 2.3%, following a +2.3% rise and below market consensus of 2.5% growth. Month-over-month Retail Sales excluding Fuel edged up 0.4%, following a 0.7% decrease and slightly exceeding expectations of +0.3%. 

GBP/USD fell to $1.6370. Above $1.6480 resistance comes at $1.6520 and $1.6625 (Aug’2011 highs). Support now comes at $1.6320 and $1.6240 (channel support line from Nov 12). 

YEN 

The dollar surged to a five-year high against the yen, as investors interpreted the U.S. Federal Reserve’s move to pare back its bond-buying program as a sign the world’s biggest economy is improving. 

USD/JPY trades near resistance at Y104.30. Above the resistance comes at Y105.20 (channel resistance line from Nov 7). Initial support is around Y103.60 (50% Fibo of Wednesday’s rally), then - at Y102.70 (channel support line), Y102.20 (Dec 11 lows) and Y101.60/50 (Dec 5 lows). 

DATA AHEAD: 

US Initial Jobless Claims will be published at 13:30 GMT, ahead of US Existing Home Sales Change due at 15:00 GMT.

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