Nov. 27: European session
EUR/USD is trading around $1.3600 after testing $1.3613. GfK German consumer climate came above forecast at 7.4 (forecast: 7.1). Euro’s supported by the buying interest. The next level on the upside is 61.8% Fibo of the Oct.-Nov. decline at $1.3625.
As expected, the second estimate UK Q3 GDP came unchanged at +0.8% q/q (+1.5% y/y). However, the pound rallied strongly, taking GBP/USD up by 120 pips to $1.6320. The cable broke above the strong $1.6260 resistance and approached the next important level – $1.6340 (2009-13 trend line). EUR/GBP fell to 0.8330, while GBP/JPY marched higher to 166.00. USD/JPY is trading 10 pips below the Monday’s 6-month high of 101.90.
We are now bracing for US data due at 13:30 GMT (Initial Claims, Durable Goods Orders and the Reuters/Michigan index).