Currency market. EUROPEAN session review: Market stays calm

Data released: 

07:00 GMT Germany Producer Price Index (MoM) (Dec) 0.1% 0.0% -0.1% 

07:00 GMT Germany Producer Price Index (YoY) (Dec) -0.5% -0.7% -0.8% 

09:00 GMT Italy Industrial Orders n.s.a (YoY) (Nov) 3.0% _ 1.2% 

09:00 GMT Italy Industrial Orders s.a (MoM) (Nov) 2.3% _ -2.3% 

The main currencies trade calm amid lack of important news. 

EURO 

The data released showed German PPI has beaten expectations for both MoM and YoY data. 

German PPI rose 0.1% m/m and declined 0.5% y/y after -0.1% and -0.8% earlier and 0.0% and -0.7% expected respectivly. 

EUR/USD stays near $1.3500 after breaking under initial support at $1.3550. Below losses may widen to $1.3400 (Nov 21 lows). Initial resistance comes at $1.3600, then - at $1.3685/95. Above - at $1.3720 and $1.3820 (Dec 30 highs). 

POUND 

GBP/USD posted a key bullish reversal Friday with volumes picking up, reflecting investor appetite having returned, in the short-term at least. 

GBP/USD stays above $1.6400. Initial resistance comes at $1.6460 (Jan 14 highs). Above resistance remains at $1.6520 with stronger one - at $1.6580 (Dec 27 highs). Minor support comes at $1.6400. Below losses may widen to $1.6220 (Dec 17 lows) and $1.6180. 

YEN 

The yen retreats after the recent rally. 

Monday’s report showed Japan’s Industrial Production fell 0.1% m/m and 4.8% y/y in November after 1.0% and 5.4% gain earlier respectively. 

USD/JPY still trades around Y104.00. Minor resistance is around Friday’s high on Y104.50, above - at Y104.90/00 (Jan 16 highs). Initial support comes at Y103.85 (Asian lows). Below losses may extend to Y103.00 and Y102.20 (Dec 11 lows). 

DATA AHEAD: 

There is no key data for today.

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