Markets were mixed last week, and were relatively quiet while , EUR and CAD made up lost ground.
Bargain hunting and thin volumes helped Gold end the second consecutive week in green, gaining $21/oz. in the process.
was well supported too as Europe continues to churn out strong economic numbers. Last week Europe came out at 1.50% same as was expected and EU jumped to 1 from an expected 0. On Friday however bad news emerged from Spain as political parties aligned to Catalan independence won during the Catalan elections. Markets were hit by worries that this might bring back tensions seen last October when Madrid and Catalonia faced off. EUR/USD never the less managed to end with week with a gain of 120 pips.
GBP/USD was seen trading in narrow range as Brexit chatter failed to enthuse the markets.
Rising yields and a Bank of Japan stalemate meant USD/JPY traded with an upward bias. Fed raising rates this month has helped interest rate differential playing against Yen as it continues to be sold against US dollar. USD/JPY gained 50 pips last week to end at 113.20.
came under pressure last week initially by the inability of the bulls to break the resistance at 1.2900 and then by strong inflation and retail sales figure that was released on Thursday. USD/CAD dropped below the 1.2700 handle briefly, but on Friday figures disappointed lending bulls a helping hand to end the week at 1.2700.
Next week should see thinner volumes as traders celebrate their festivities, the economic calendar too is thin with no major data set to be released that can excite the markets.
Gold has rallied smartly after finding support at $1240/oz. but now faces resistance at $1281/oz. where a falling trend line from September highs lies. Support exists at $1269/oz. and $1260/oz. Gold could soon come under pressure if US yields that dollar tracks closely moves higher.
EUR/USD last week broke out of the falling trend line channel as it made a high of 1.1900. It should now find support at 1.1820 and look to test 1.1900 again. No major news is expected from Europe except for some Catalonian banter from the pro-independence parties in Catalonia.
USD/CAD has first support at 1.2720 ahead of even stronger one at 1.2660. USD/CAD should remain supported after key worries ( NAFTA ) highlighted by BoC remains unresolved.
Read Again Forex Weekly: December, 26 - 29, 2017 : http://ift.tt/2kPrycuBagikan Berita Ini
0 Response to "Forex Weekly: December 26 - 29 2017"
Post a Comment