The Euro has retraced close to half of December’s impressive rally against the US dollar and now looks poised for an upswing. The broad trend continues to favor a bearish outlook, with a correction higher offering an attractive selling opportunity ahead.
Forex market price action has picked up during this holiday-free week, exacerbated by high event risk for the US dollar, euro, and Canadian dollar. The British pound should see continued volatility as well on Thursday, as the Bank of England is widely expected to cut rates by 50 basis points to a record low of 1.50%.
-euro bounce not yet convincing -USDJPY rolls over at important resistance area -British Pound takes 1.50; rally to extend -AUDUSD at potentially strong resistance
The Euro may see renewed selling pressure as German Unemployment is set to rise for the first time in nearly three years, with 10 thousand people expected to lose jobs in December. Overnight data saw the New Zealand trade deficit narrow as imports dwindled while Australian Retail Sales surprised to the upside in November.