EUR/USD continues its bearish trend, stabilizing near 1.0400 support with parity in sight, fueled by US dollar strength and Eurozone economic challenges.
The GBP/USD exchange rate remained relatively unchanged this week, as the forex market experienced low volumes due to the Christmas Holiday. It has stalled at 1.2545, a few pips above this month’s low of 1.2478.
Risk appetite continues its recovery since Friday’s US PCE data came in lower than expected, with most major equity indices trading higher after the Christmas holiday.
I am fading rallies in this market every time they occur. If the market rallies, I will be looking for a long wick on an hourly candlestick between the 0.63 level and the 0.6350 level.
USD/CAD consolidates around 1.4400 amid thin trading volume in a holiday-curtailed week. Fed policymakers see more than one interest rate cut in 2025. The BoC has guided a gradual policy-easing approach for the next year.
The British pound has initially tried to rally a bit during the trading session on Monday, but as you can see, has struggled a bit to continue to go higher and has turned things around actually to show signs of weakness.
The Canadian dollar weakened to 1.44 per US dollar, nearing its lowest level since March 2020, as investors digested weak GDP data while the US dollar strengthened.
Canada posted a good news-bad news GDP (Gross Domestic Product) report yesterday. The economy climbed 0.3% month-on-month in October, following a 0.2% gain (revised from 0.1%) in September and above the market estimate of 0.1%.
The Japanese Yen (JPY) struggle to gain any meaningful traction during the Asian session on Tuesday and remains well within striking distance of a multi-month low against its American counterpart.
The Australian Dollar (AUD) loses ground for the second successive day against the US Dollar (USD) on Tuesday following the release of the Reserve Bank of Australia’s (RBA) Meeting Minutes for its December monetary policy.
