Trading has been rather subdued today, with most currency pairs moving within familiar territory. EUR/USD is facing strong resistance around 1.4800 while potential support can be found around 1.4700, 1.4670-90. Swissy rose to a 2-week high as it rallied towards 1.1300. Cable slipped to a 1-week low. US personal consumption expenditure index rose 2.9% in October compared to September’s 2.4%,

but price gains excluding food and energy were only 1.9%, so that won’t be a thorny matter for the Fed, at least for now.

German Finance Minister Peer Steinbrueck Friday said that the debate over the strong Euro must not get too "hysterical" and "too excited" because the German economy "has coped remarkably well with the strong Euro". EUR/USD is still hovering near its record highs even though profit-taking action has caused the pair to decline slightly. Eurozone November inflation estimate hits 3%, more than the 2.8% expected by most economists. I don’t think the ECB will like that very much.

USD/CAD has taken another shot at parity today but heavy selling pressure pushed the pair down again.

Posted in Categories: Forex.

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