US Dollar index recovered sharply more than 50 pips, hits a high of 97.75 on better than expected economic data. President Trump has been impeached by the House of Representatives yesterday for abuse of power and obstruction of Congress investigation. But markets reacted slightly positive after the impeachment especially US equity markets reached a new high previous week.
US housing data came better than expected with building permits rose 1.4% m/m at 1.4.482m in Nov vs forecast of 1.410m, housing starts at 1.365m vs 1.340m. Canadian retail sales dropped sharply by 1.2% much lower than the estimate of 0.5%, this has increased hopes of rate cut by BOC.
With Christmas holiday mood markets are expected to trade in a narrow range, major data to be focused are US Durable goods order and Canadian GDP data.
The yellow metals continue to trade bullish and surged more than $10 in the previous week, markets eye US-China trade deal for further direction. Any break beyond $1485 confirms slight bullish continuation.
US 10-year yield is trading higher for the past 3-week and jumped more than 7% from a low of 1.77%. The spread between US 10-year and 2-year has narrowed to 27.3 bps.
Weekly Technical:
EURUSD:
Major trend reversal level- 1.1216
Near term support- 1.10680/1.1000
Near term resistance – 1.1216/1.12885
USDJPY:
Major trend reversal level- 110
Near term support- 108.30/107.80
Near term resistance – 110/112
USDCHF
Major trend reversal level- 1.0030
Near term support- 0.9770/0.9715
Near term resistance – 0.9880/0.99780
USDCAD
Major trend reversal level- 1.3270
Near term support- 1.3100/1.3040
Near term resistance – 1.3185/1.3270
Gold
Major trend reversal level- $1445
Near term support- $1445/$1415
Near term resistance – $1485/$1500
WTI Crude
Major trend reversal level- $61.50
Near term support- $58.90/$57
Near term resistance – $61.50/$63.50.
