The euro rose against the US dollar that can be considered as a paradox in the current political climate when the conflict between the Greek government and the club creditors’ financing assistant Greece program intensifies.
The EU important economic data – the Germany industrial production grew in December worse than it was forecasted for a month and fell more than expected for the year, the indicator recorded a 0.1% m / m, -0.7% y / y against the earlier -0.1% m / m, -0.3% m/m when it was expected 0.4% m / m, -0.3% y / y.
The euro / dollar bulls do not give up their attempts to develop an upward correction. Having bought the pair on a decrease to the level of 1.1303, they returned the euro / dollar to the level of 1.1500, but the bulls did not manage to test the current maximum. The pair was unable to consolidate near the maximum and it returned to the level of 1.1300.
It is possible that the pair will remain in the range between the above mentioned levels for some time. Obviously, the bulls need to overcome the resistance near 1.1500-1.1533 for the growth continuation.
The Bank of England decision announcement about the monetary policy perspectives showed the results within the forecasts; the key interest rate remained unchanged at the level of 0.5%. However, the British pound has increased against the dollar.
It is assumed that the trade deficit rose again in December after the November reduction and increased to -9.2 billion pounds from -8.8 bn. pounds.
The bulls within the GBP / USD have managed to overcome the resistance near the 52nd figure which led to the growth continuation, testing and the resistance completion around 1.5290. It was unable to overcome the bulls’ frauds near 1.5343. The pair GBP / USD have decreased and returned to the mark of 1.5300.
The rebound is possible to the level of 1.5200 in the short term. The loss of the support may lead to a decrease towards the 52nd figure. While the pair is trading above it, the growth chances will be preserved. Its breakthrough will open the way to 1.5015.
The Japanese yen was traded against the dollar in a very narrow side corridor and closed the session almost on the opening prices.Japan published the data, concerning the leading and coincident economic December indicators which showed positive results.
The pair output from the upward direction in the narrow range, limited by the support near 117.07 and the resistance near 117.59 while it remains within the broader consolidation range which outlined the further movement direction. The pair broke through the resistance near 118.00 and tested the mark of 119.20.
We believe the yen will continue growing. The next target is the level 120.00.