GBPUSD stronger and USDCHF weaker

Here is a look at some of the largest movers of the week: Chart

Stocks (1)

The US Dollar was bullish against all of its major pairs on Friday. On the US economic data front, the Leading Index rose 0.6% on month in November (+0.5% expected), compared to a revised +0.8% in October.

On Monday, no major economic data is expected.

The Euro was bearish against most of its major pairs with the exception of the CAD and GBP. In Europe, on the statistical front, in Germany, the IFO business climate index came out better than expected at 92.1 in December, compared with 90.9 in November (revised from 90.7) and 90.0 expected. The Current Conditions sub-index stood at 91.3, compared with 90.0 in the previous month and 89.0 expected. The outlook sub-index stood at 92.8, compared with 91.8 a month earlier (revised from 91.5) and 92.5 expected. On the other hand, the producer price index was up 0.2% in November, compared with +0.1% expected, after increasing by 0.1% the previous month. Also, in the UK, retail sales fell by 2.6% in November, whereas the consensus forecast was for a decline of 4.0%, after a 1.4% increase in October (revised from +1.3%). In addition, the GfK household confidence indicator showed a slight increase to -26 in December, as expected, compared to -33 the previous month.

The Australian dollar was bullish against most of its major pairs with the exception of the CHF and USD.

Looking at the large movers of the week, the GBP/USD jumped just over 2% (274 pips) over the last 5 trading days making it the top performer of the week. The pair broke above 1.3535 resistance briefly however could not close above it. The anticipation of a breakout remains. 

Source: GAIN Capital, TradingView

The largest decliner on the week was the USD/CHF pair with a decline of 0.76% (63 pips). The downside prevails after the pair broke below a consolidation zone. Prior support in the consolidation at 0.898 has now become key resistance on the decline. Look for the bearish trend to continue towards support targets of 0.898 and 0.87 in extension. 

Source: GAIN Capital, TradingView

More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account