Currency snapshot (major pairs)

Dollar index trading at 100.56 (-0.99%)

Strength meter (today so far) – Euro +0.97%, Franc +1.02%, Yen +0.99%, GBP +1.38%

Strength meter (since last week) – Euro +0.89%, Franc +1.05%, Yen +1.53%, GBP +0.37%

EUR/USD –

Trading at 1.071

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 – 1.087, Short term – 1.067

Economic release today –

• Zew survey economic sentiment rose to 23.2 in January.

Commentary –

• Euro rose sharply as Trump’s comments on strong dollar as detrimental pushed the dollar down. 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 1.221

Trend meter –

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

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 –

• Retail price index rose by 2.5 percent y/y in December.
• CPI and core CPI rose by 1.6 percent y/y.
• PPI output rose by 2.7 percent y/y and input rose by 15.8 percent y/y.
• House price index rose by 6.7 percent y/y.

Commentary –

• The pound remains the best performer of the day as inflation rises sharply, heading into Prime Minister May’s speech. We expect the pound to reach parity.

USD/JPY –                      

Trading at 112.9

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 –

• Industrial production rose by 1.5 percent in November, up 4.6 percent from a year ago.           

Commentary –

• The yen is the best performer of the week, similar to last week as risk aversion sets in with regard to Trump’s policy uncertainties and Brexit. Active call- Sell USD/JPY targeting 110.

USD/CHF –        

Trading at 1.00

Trend meter –

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

Support –

• Long term – 0.95, Medium term – 0.95, Short term – 1

Resistance –

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

Economic release today –

• NIL

Commentary –

• Franc has broken below parity, the pair likely to decline towards 0.98 area. Active call -Franc might decline to 1.08 per dollar. Target extended to 1.14