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Currency Analyst since 2010

Nov. 26: Asian session

EUR/USD rose from $1.3515 to $1.3540. Euro got support as the People’s Bank of China Governor Zhou Xiaochuan said that French Government debt is good part of Chinese investments and that euro id important part of Chinese reserves. The ECB’s Asmussen is scheduled to speak later today. In his last speech he didn’t rule out the possibility of a negative deposit rate. In the US watch for building permits and housing starts (13:30 GMT); S&P Case Schiller home prices (14:00 GMT); CB consumer confidence and the US Richmond Fed manufacturing Index (15:00 GMT).

GBP/USD formed a bearish engulfing on the daily chart and is trading in the $1.6150 area after the initial attempt to rise to $1.6175. The Bank of England’s Governor Mark Carney and some other MPC officials will testify on inflation and the economic outlook before Parliament's Treasury Committee (10:00 GMT).

USD/JPY weakened to 101.30 after having reached 101.90 yesterday – the highest level since May 2013. There was no sharp JPY reaction to the Bank of Japan’s meeting minutes released today, but it is interesting that some members saw Japan’s economic and price risks tilted to downside. There were no talks about the additional monetary stimulus on the November meeting. USD/CHF is trading on the downside, just above 0.9100. Yesterday US dollar gained about 50 pips.

AUD/USD has recovered from the yesterday’s low of $0.9125 (lowest since September), but remains capped by the $0.9200 mark. RBA Deputy Governor Philip Lowe held a speech, saying Australia needs a productivity boost. Unlike Stevens last week, Lowe didn’t try to talk the Aussie down. NZD/USD has extended the upside to $0.8260. USD/CAD is little changed today in the 1.0538 area. Yesterday US dollar made another spike to 1.0578, but failed to close that high. Canadian dollar weakened as the price of oil, Canada’s biggest export, fell after Iran and world powers reached an interim deal to set limits on its nuclear program.

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