Currency market. US session review

Data released: 

13:30 CA GMT Gross Domestic Product (MoM) (Oct) 0.3% 0.2% 0.3% 

13:30 US GMT Chicago Fed National Activity Index (Nov) 0.60 -0.07

13:30 US GMT Personal Income (MoM) (Nov) 0.2% 0.5% -0.1% 

13:30 US GMT Core Personal Consumption Expenditure - Price Index (MoM) (Nov) 0.1% 0.1% 0.1% 

13:30 US GMT Core Personal Consumption Expenditure - Price Index (YoY) (Nov) 1.1% 1.1% 

13:30 US GMT Personal Consumption Expenditures - Price Index (MoM) (Nov) 0% 0% 

13:30 US GMT Personal Consumption Expenditures - Price Index (YoY) (Nov) 0.9% 0.7% 

14:55 US GMT Reuters/Michigan Consumer Sentiment Index (Dec) 82.5 83.0 75.1 

The dollar dropped versus most of its major peers amid speculation investors were exiting bets on further gains before year-end.

The U.S. currency advanced versus eight Group of 10 currencies last week as the Federal Reserve said it will reduce the size of its bond-purchase program and reiterated that benchmark rates will remain low.

EURO

Data released showed German Import Price Index came in at 2.9% m/m, straddling -3.1%, and YoY 0.1% against forecasts of -0.2%. 

EUR/USD tested the resistance at $1.3710. Next resistance is around $1.3810 (Dec 11 and 18 highs), extending to $1.3830 (Oct 25 highs). Support area is $1.3600/40. Below losses may widen to $1.3520 (Dec 2 lows). 

POUND

Today there is no key economic data from UK. 

GBP/USD holds at $1.6350, above $1.6320 (61.8% Fibo of the rise from Dec 17 lows on $1.6220). Support now comes at $1.6280 (channel support line from Nov 12) and $1.6260 (Dec 13 lows). Initial resistance is around $1.6380, then - at $1.6480 (Dec 18 high). Above resistance is near $1.6520 and $1.6625 (Aug’2011 highs).

YEN

The dollar extended its retreat from a five-year high versus the yen amid speculation investors are exiting bets on further gains before year-end and ahead of data on the Federal Reserve’s preferred inflation gauge.

USD/JPY holds a bit lower Y104.00 after it tested Y104.60 last week. Above the resistance comes at Y105.00 and Y105.80 (channel resistance line from Nov 7). Initial support is around Y104.00/Y103.90 (Dec 13 highs), then - at Y103.15 (channel support line), Y102.20 (Dec 11 lows) and Y101.60/50 (Dec 5 lows).

COMMODITY CURRENCIES:

LOONEY: The Canadian dollar strengthened after a report showed the nation’s gross domestic product expanded for a fourth straight month in October.

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