Dec. 10: MARKET OVERVIEW
US Dollar remains under pressure as investors are taking profits approaching the year-end – long positions have clearly become overstretched over the past weeks. USD/JPY remains under pressure, hovering slightly above the 119 mark. Markets are now discussing the increased political uncertainty in Greece. The country's government surprised the world by announcing a snap presidential vote beginning next week, on Dec. 17.
EUR/USD consolidates around $1.2380 following the yesterday’s rapid recovery to 1.2450. The pair approached the trend resistance that for now is limiting the bullish correction. Euro zone’s economic calendar for today is rather light with the French Industrial Production being the only event to watch. Markets await the targeted TLTRO and US retail sales data on Thursday. GBP/USD follows the euro and consolidates around 1.5680 as we speak. Watch the US trade balance at 9:30 GMT.
AUD/USD didn’t show a significant response to the weak Westpac sentiment data, but managed to recover above 0.8300 on Chinese PPI and CPI data that open the way for more stimulus in the region. NZD/USD recovered back above 0.7700. RBNZ holds its policy meeting at 20:00 GMT. The official cash rate will likely remain steady at 3.5%.