EUROPEAN session review: Pound fell after Dale’s speech

Data released: 

07:00 GMT Germany Wholesale Price Index (YoY) (Nov) -2.2% _ -2.7% 

07:00 GMT Germany Wholesale Price Index (MoM) (Nov) -0.2% _ -1.0% 

08:15 GMT Switzerland Producer and Import Prices (YoY) (Nov) -0.4% -0.1% -0.3% 

08:15 GMT Switzerland Producer and Import Prices (MoM) (Nov) -0.1% 0.2% -0.4% 

10:00 GMT EMU Employment Change (YoY) (Q3) -0.8% -1.1% Revised from -1.0% 

10:00 GMT EMU Employment Change (QoQ) (Q3) 0% 0% Revised from 0% 

Negative global trading sentiment spurred by tapering fears continued to weigh on the markets. Most main currencies also headed for weekly losses after solid U.S. jobs data last week and a budget deal in Washington fueled speculations the Federal Reserve could reduce its asset purchases next week. 

EURO 

ECB, Praet said nothing new. He siad that euro are recovery muted, fragile. Also he noted ECB is ready and able to act. Instruments to use depend on problem to be addressed 

EUR/USD fell to $1.3730. Above resistance comes at $1.3830 (Oct 25 high). Support is around $1.3720 with a break below opens the way to support near $1.3620 ahead of $1.3600. 

POUND 

The pound dropped after BoE Dale said the Bank will not hike rates nearest future. Also he noted BOE is fully aware of risks to economy from housing. 

GBP/USD fell to $1.6250. Below support comes at $1.6140. Initial resistance is around $1.6400/15 (yesterday’s highs). Above recent high on $1.6465 resistance comes at $1.6520 and $1.6625 (August’2011 highs). 

YEN 

The U.S. dollar climbed on Friday to its highest level against the Japanese yen in more than five years, as the two nations’ monetary policies held the market’s attention ahead of central-bank decisions due out next week. 

USD/JPY retreats. Initial support is around Y103.00, then - at Y102.60 (channel line from Nov 7). Initial resistance is near Y104.00, above - near Y105.00. 

Source of information>>

More information>>