Currency Analyst since 2010

Dec. 5: Asian session

Currency market’s extremely volatile in the recent days as investors weigh the potential impact of growth indicators and monetary policy decisions in the world’s biggest economies.

EUR/USD tested support $1.3528 yesterday, but then managed to recover and close on the upside at $1.3605. The pair reached $1.3620 today. Euro holds grounds before the ECB’s meeting today (12:45 GMT) and Mario Draghi’s press conference (17:30 GMT). As for America, US preliminary GDP is released at 13:30 GMT and economists expect the advance growth reading to be revised up from 2.8% to 3.0%.

GBP/USD tested $1.6324 on the downside yesterday, but is now trading in the $1.6388 area. It’s an important day for pound as well. British government will release Autumn Forecast Statement with an updated economic outlook and previews the government's budget for the coming year. The Bank of England will announce its monetary policy decision at 12:00 GMT.

USD/JPY is trading under pressure for a third day in a row, descending from the 6-month high of 103.37 to the levels slightly below 102.00. Nikkei 225 index has retreated further from highs. USD/CHF slid to the levels just above 0.9000 and is trading at the lower edge of the daily Ichimoku Cloud.

Commodity currencies have found some support on Thursday. AUD/USD has recovered into the $0.9040 area after it touched a new low of $0.9000 yesterday. Aussie dipped a little in the Asian session as data showed Australia trade deficit widened to 529M (prior -284M) in October.  NZD/USD has rebounded to $0.8200. USD/CAD is trading in the 1.0680 area after it spiked to 1.0707 yesterday. There will be important data from Canada as well today: building permits at 13:30 GMT and Ivey PMI at 15:00 GMT.      

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