EUR/USD rose to 1.0460 on the typical for the year-end profit-taking. The US 10-year bond yields dropped towards 2.4930 – it’s their lowest levels in 2 weeks. The Eurozone yields also extended their losses, but to a lesser extent. This happens mainly because of the insufficient strength of a bailout plan for Italian banks.
USD/JPY slumped to 116.50 nearly reaching the support 116.45 (100 H4 MA). The US weak home sales data released yesterday can be blamed for the massive selloff of the US dollar. Later today we will receive the US unemployment claims report, good trade balance that may bring some changes to the chart. On the upside, there are some hurdles located at 116.90 (Ichimoku Tenkan-sen on the hourly timeframe), 117.00, 117.30 (100=hour MA).
GBP/USD edged up to 1.2246 after hitting its lowest level of 1.2200 in 2 months. The Institute of Public Policy Research published its report on the future economic prospects of the UK. Analysts predict the Britain might face a decade of disruptions following the Brexit with a stagnating economy, low incomes for the poor and rising non-white population. The report’s author, Mathew Lawrence, notes that new barriers to trade that can be introduced upon the EU-UK separation will drive the pound down. Government finances will reach a breaking point under the strain of the National Health service and pension spending as the British population ages and the Brexit may lead to the reduction of the tax base.
Aussie continues its rally towards the resistance located at 0.7020 (near the 50 H4 MA). AUD/USDmaintains its bullish momentum due to the widespread weakening of the greenback and a rather smooth trading in commodity markets. USD/CAD fell to 1.3520 despite the dip in oil prices. Brent oil futures slipped to $56.80 as soon as the US crude inventories data released yesterday showed a build in oil stockpiles.
Origin: FX BAZOOKA
