Forex Morning Briefing
$DXY, $EUR, $JPY, $GBP, $AUD
Commentary: Most currencies to go quiet over the next few days into the Christmas Holidays. PE
The US Dollar (.DXY) Index at 93.408 saw a high of 93.5 marked Thursday, on Friday it reached 93.56, .DXY is likely to decline towards 93 and then to 92.5 by early January.
EUR (Euro) at 1.1848 saw a high of 1.19 Wednesday and has been trading in the 1.185-1.19 range after that. It reach a low of 1.1817 Friday, but pulled back up to 1.185. It is likely that after seeing minimal movement during the Holiday season, it will test resistance at 1.19 and in case of a clear break there attempt to move to 1.25 medium term.
USD/JPY at 113.31 tested at 113.5 Thursday, marked a high of 113.64, dipped to close at 113.32, where it is trading now. US-Japan yield spread is increasing at 2.423 now, and till the time it rises towards 2.45, we could see USD/JPY stay ranged between 113 to 113.5. But, with a dip in the yield spread and with likely weakness in USD next month, we could see USD/JPY move down to support near 112.3-112.5 on daily candles.
Sterling (GBP) at 1.3380 marked a low of 1.3332 Thursday, testing support near 1.334-1.335, but hasbeen trading around 1.337-1.338 Friday. Expect ranged movement between 1.335 – 1.345 to continue next week.
AUD (Aussie) at 0.7716 tested support on weekly line around 0.75 in the 1st 10 days of the month, is now gaining strength and approaching 0.7792, that is near the current 21-Day MA. With expected USD weakness, could see Aussie attempt 0.78-0.79 in January, which there could be some sideways movement before resuming a move to 0.80
Have a Happy Christmas Holiday Weekend.