Market Brief

Currency markets have been stuck in relatively tight ranges for most of the day as strong equity market performances across Europe and the US negated slightly disappointing economic data releases. Gold took advantage of the positive risk sentiment to power to new highs at $1136.70, a staggering 8.8% gain month-to-date, however in contrast (perhaps highlighting the breakdown in the correlation) EURUSD has spent almost the entire European session in a 50 pip range between 1.4940-1.4990. Eurozone CPI slightly missed estimates at 0.2% MoM (vs. 0.3% expected), but annualized figures were broadly in line with consensus at -0.1% YoY. The directionless price-action continued into the US session where the main release of the day was US Retail Sales for October. The 1.4% MoM print was significantly higher than forecasts for a 0.9% gain, but countering this positive surprise was the negative surprise that last month's -1.5% reading had been revised lower to -2.3%. The knee-jerk 20 pip sell-off in EURUSD was quickly reversed, but subsequent comments from Ben Bernanke where he stated that Fed policy would ensure the dollar is strong caused EURUSD to plunge 90 pips to 1.4880 in a knee-jerk sell-off, but has since recovered to 1.4940 levels.The downward pressure on USDCHF has ensured EURCHF continues to test major support at 1.5080-90; it seems the repeated and consistent profitability of bets on SNB intervention has attracted significant attention, and we may now be facing the end of the party if key support fails and we do not see the central bank stepping in to weaken the CHF and rescue EURCHF longs.

Currency Tech

EURUSD
R 2: 1.5060
R 1: 1.5045
CURRENT: 1.4930
S 1: 1.4820
S 2: 1.4785

GBPUSD
R 2: 1.6845
R 1: 1.6795
CURRENT: 1.6785
S 1: 1.6515
S 2: 1.6400

USDJPY
R 2: 90.85
R 1: 90.60
CURRENT: 89.40
S 1: 89.60
S 2: 89.25

AUDUSD
R 2: 0.9475
R 1: 0.9370
CURRENT: 0.9355
S 1: 0.9210
S 2: 0.9195

USDCAD
R 2: 1.0780
R 1: 1.0603
CURRENT: 1.0490
S 1: 1.0415
S 2: 1.0375

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