GBP/USD Tests New Highs As Rally Continues
- U.S. dollar continues to move lower as traders believe that the Fed would slow the pace of rate hikes.
- USD/JPY gained strong downside momentum and moved towards the 138 level.
- Commodity-related currencies enjoy support in today’s trading session.
U.S. Dollar Remains Under Pressure
There are no economic reports scheduled to be released in the U.S. today, so traders will focus on general market sentiment. Currently, the U.S. Dollar Index is trying to settle below the 105.70 level. In case this attempt is successful, the U.S. Dollar Index will gain additional downside momentum and move towards the 105.50 level.
EUR/USD Settled Above The 1.0400 Level
EUR/USD managed to get above the 1.0400 level and is trying to gain additional upside momentum.
Today, EUR/USD traders focused on the Ifo Business Climate report from Germany. The report indicated that Germany’s Business Climate improved from 84.5 in October to 86.3 in November, compared to analyst consensus of 85.
It should be noted that Germany’s business sentiment remains at extremely low levels, but the market is ready to interpret any improvement as a bullish catalyst for the European currency.
GBP/USD Tested New Highs
GBP/USD continues to move higher as traders react to the dovish FOMC Minutes.
Currently, GBP/USD is trying to settle above the resistance at 1.2130. RSI is close to the overbought territory, but there is enough room to gain additional upside momentum in case the right catalysts emerge. If GBP/USD settles above 1.2130, it will move towards the next resistance level at 1.2150. A successful test of this level will push GBP/USD towards the resistance at 1.2185.
On the support side, the nearest support level for GBP/USD is located at 1.2100. A move below this level will open the way to the test of the support at 1.2080. If GBP/USD declines below 1.2080, it will head towards the next support at 1.2050.
Commodity-Related Currencies Continue To Rebound
FOMC Minutes provided material support to commodity-related currencies, which continued to move higher.
USD/JPY Retreats Despite Disappointing PMI Data From Japan
The report indicated that Japan’s Manufacturing PMI declined from 50.7 in October to 49.4 in November, compared to analyst consensus of 50.8. Numbers below 50 show contraction.
While the report indicated that Japan’s economy was slowing down, the Japanese yen gained ground against the U.S. dollar as traders focused on the potential shift in Fed’s rhetoric after the release of the FOMC Minutes.
For a look at all of today’s economic events, check out our economic calendar.