Currency snapshot (major pairs)

Dollar index trading at 96.66 (-0.34%)

Strength meter (today so far) – Euro +0.47%, Franc +0.08%, Yen +0.29%, GBP -0.05%

Strength meter (since last week) – Euro +1.12%, Franc +0.61%, Yen +1.04%, GBP +0.61%

EUR/USD –

Trading at 1.143

Trend meter –

• Long term – Sell, Medium term – Sell, Short term – Buy

Support          

• Long term – 1.10, Medium term – 1.12, Short term – 1.123

Resistance –

• Long term – 1.22, Medium term – 1.18, Short term – 1.153

Economic release today –

• Construction output up 1.8 percent y/y in October.

      Commentary –

• The euro is the best performer this week as Italy reaches agreements on Budget with Brussels bureaucrats. Active Call - Sell Euro at 1.218 with 1.17 as target; target revised lower to 1.095 area.

GBP/USD –

Trading at 1.265

Trend meter –

• Long term – Sell, Medium term – Sell, Short term – Sell

Support –

• Long term – 1.19, Medium term – 1.23, Short term – 1.268

Resistance –

• Long term – 1.35 Medium term – 1.337, Short term – 1.326

Economic release today –

• RPI up 3.2 percent y/y in November.
• PPI input up 5.6 percent y/y.
• PPI output up 3.1 percent y/y.
• CPI inflation up 2.3 percent y/y.
• Core CPI up 2.4 percent y/y.

Commentary –

• The pound is up this week on a weaker USD. Active call-  short term sell at 1.413 targeting 1.375 (target reached); extended to 1.354 (target reached); extended to 1.25 and 1.21

USD/JPY –           

Trading at 112.2

Trend meter -

• Long term – Sell, Medium term – buy, Short term – Range/Sell

Support –

• Long term – 106.2, Medium term – 109.2, Short term – 111

Resistance –

• Long term – 117, Medium term – 114, Short term – 114

Economic release today –

• NIL

Commentary –

• The yen remains trapped in bull/bear fight amid risk aversion and strong dollar. Rising this week amid rising risk aversion in the market and a weaker USD.

USD/CHF –

Trading at 0.992

Trend meter –

• Long term – Buy, Medium term – Range/sell, Short term – Range/Buy

Support –

• Long term – 0.92, Medium term – 0.95, Short term – 0.97

Resistance –

• Long term – 1.03, Medium term – 1.00, Short term – 1.00

Economic release today –

• NIL

Commentary –

• Franc is up this week riding on a weaker USD but much worse performer than the euro.