Dec. 18: American session
U.S. dollar shows the weakness just before the Fed statement. Heightened volatility has led to an increase in the EUR/USD pair to the 1.3768 level, and this against the background of positive data on the construction sector in the U.S. Thus, the number of new homes, construction of which began in November grew by 22.7 % and amounted to 1,091 million. Analysts expected an increase to 0.950 million only. In anticipation of the Fed's decision, the pair is trading at 1.3760, there may be further swings. GBP/USD has received a long-awaited support from macroeconomic statistics today. According to the Office for National Statistics , the unemployment level in the UK fell dramatically. The number of people receiving unemployment benefits fell in November by 36.7 thousand, analysts expected a reduction of only 35.0 thousand people. Bulls did not miss the opportunity and rushed up. Currently trades are carried in session highs just above the 1.6400 figure. Note that the opening of trading today was at the level of 1.6260.
USD/CHF has decreased in the U.S. session, after the daily high at 0.8900 figure has been established. Weakening of the U.S. dollar led to a depreciation of the currency pair to 0.8860 support. The breakdown of this level will trigger a new wave of sales. The increase in the trade deficit in Japan (to 1.29 trillion yen in November , compared with the October 1.09 trillion) did not give the Bears to turn in full force to continue the devaluation of USD/JPY. Pair finally broke up 103.00 resistance and is currently setting new highs over the past three days, trading above $ 103.28 . Obviously, the correction is over.
Australian AUD/USD is dropping, setting new lows of 0.8870 in the U.S. session. Note that the figure of 0.8900 restrained pair from resuming the downtrend all day long. Pair NZD/USD has also set to decline. Bears knocked down 0.8240 support to form a new low at 0.8223.
USD/CAD pair is growing the second day in a row. This afternoon, the price broke through the 1.0615 resistance up and caught up in the American session to 1.0670 resistance, which is held on December, 6th. There is a high probability of further growth.
Tatiana Norkina, FBS analyst