Currency snapshot (major pairs)

Dollar index trading at 99.97 (-0.34%)

Strength meter (today so far) – Euro +0.47%, Franc +0.31%, Yen +0.40%, GBP -0.12%

Strength meter (since last week) – Euro +0.65%, Franc +0.71%, Yen +1.65%, GBP -0.38%

EUR/USD –

Trading at 1.076

Trend meter –

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

Support                      

• Long term – 1.01, Medium term – 1.032, Short term – 1.032

Resistance –

• Long term – 1.11, Medium term – 1.084, Short term – 1.084

Economic release today –

• Fourth quarter GDP increased by 1.8 percent.
• Unemployment rate came at 9.6 percent in December.
• Consumer price inflation rose by 1.8 percent y/y in December.

Commentary –

• The euro rose sharply after Trump’s trade advisor called it undervalued. Active call – Sell EUR/USD at 1.116 with stop loss at 1.15 and target at 1.01. stop loss revised to 1.13

GBP/USD –

Trading at 1.249

Trend meter –

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

Support –

• Long term – 1.16, Medium term – 1.2, Short term – 1.2

Resistance –

• Long term – 1.32, Medium term – 1.27, Short term – 1.27

Economic release today –

• Consumer credit for December at came at £1.039 billion.
• Money supply rose by 6.2 percent y/y in December.

Commentary –

• The pound is the worst performer of the day, despite a weak dollar as the money supply and credit data disappoints. We expect the pound to reach parity in the longer run.

USD/JPY –                      

Trading at 113.3

Trend meter –

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

Support –

• Long term – 98, Medium term – 105, Short term – 112

Resistance –

• Long term – 121, Medium term – 120, Short term – 119

Economic release today –

• NIL

Commentary –

• The yen is the best performer this week on risk aversion, but hasn’t been much of a performer for the past two weeks. Active call- Sell USD/JPY targeting 110.

USD/CHF –        

Trading at 0.991

Trend meter –

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

Support –

• Long term – 0.95, Medium term – 0.95, Short term – 0.98

Resistance –

• Long term – 1.08, Medium term – 1.037, Short term – 1.037

Economic release today –

• NIL

Commentary –

• Franc is up in line with the euro, the pair is likely to decline towards 0.98 area in the very near term. Active call -Franc might decline to 1.08 per dollar. Target extended to 1.14