EURUSD - Current Price $1.07316
The USD continues to trade on the defensive this session after President Trump's inauguration speech raised concerns about potential protectionist trade policies. Eur/Usd which slid to an early low near $1.0680 has bounced back to clinch a daily high of $1.0755 ahead of pan-Eurozone consumer confidence and speeches from ECB President Draghi and Chief Economist Praet. From a technical view, we look for resistance around the $1.08 round figure mark followed by the December 8th high at $1.0874. On the downside, the overnight low at $1.0686 and Friday’s low at $1.0625 are in focus.
GBPUSD - Current Price $1.24513
Cable also attracted a bid at the start of the week with President Trump and PM May this week set to hold talks over a US-UK trade deal that cuts tariffs and allows workers to move between the US and UK. The pair rose to a high of $1.2445 after light stops above $1.2425 were tripped but selling from a UK Clearer saw it ease back towards the $1.2405 level before bouncing back to fresh daily tops above $1.2470. Above here, we look for resistance around the December 16th high at $1.2509 followed by the December 15th high at $1.2568. On the downside, a break below the overnight low at $1.2331 would aim for the January 9th high at $1.2278.
USDJPY - Current Price ¥113.59
A sharp drop for Usd/Jpy at the start of the week, the rate fell towards ¥114.00 initially, but stabilised around ¥114.25 and nearly covered the gap down before Tokyo morning selling saw a more extended drop, under ¥114.00 and then continuing to fresh lows in the ¥113.20 region as selling pressure around the greenback gained traction. In terms of technicals, Tuesday’s low at ¥112.57 is our first level of support followed by the November 30th low at ¥112.06. On the upside, Friday’s low at ¥114.21 and the overnight high at ¥114.49 are in focus.
EURGBP - Current Price 0.8617
Sterling appears to be benefitting from the negative focus elsewhere today, as concerns over the likeliness of a hard Brexit have somewhat diminished after PM May’s speech last Tuesday. That said, we are looking to tomorrow’s Supreme Court decision on whether May or the Parliament has the power to trigger Article 50. Anyway, EURGBP dropped to an early low around 0.86179 but buying saw it ease back above the 0.86330 level. This has since been reversed, now printing daily lows and still falling.