Today’s Forex market openings continue to be dominated by updates on the US fiscal cliff talks, Japan’s election results as well as the anticipated release of the UK November Consumer Price Index figure later in the day.After a momentous plummet yesterday, the Japanese currency managed to achieve a steady position in the early trading session on Tuesday. As reported in Tokyo, the dollar was trading at 83.98 JPY, up from 83.83 late on Monday.
Although an official statement is still not released, the meeting between US President Barack Obama and House of Representatives Speaker John Boehner on Monday night sparked optimism among investors that fiscal cliff negotiations are heading in the right direction. The President presented a counter-offer to the Republicans, which consisted of a key change to the tax increase on the wealthy, according to sources familiar with the meeting.
The euro continues to stay steady against the dollar and the EUR/USD chart remains almost flat. The single currency found support in comments made by some ECB members to ‘’talk down the idea of a further cut in policy rates’’.
UK CPI figures for November are expected to show a growth of 0.2% on a monthly and 2.7% on an annual basis. A slight drop in inflation by 2.6% is also expected, which is an improvement from the previous month and in consistency with the Bank of England’s targets.
The dollar depreciated from 84.35 to 83.60 JPY during yesterday’s session. This morning, the currency pair is trading at 83.95 – 84.05.
According to analysts, if the dollar successfully overcomes the resistance zone of 84.00 -84.15 JPY, the aim will be reaching and testing the 84.35 – 84.50 zone. If successful, the upward trend will continue to 84.75 – 84.95, and if it falls below the support zone 83.95 – 83.80, the next support zone is expected to be at 83.65 – 83.40. In case of going down, the downward trend will continue to 83.20 – 83.00.
The euro traded in the range of 1.3145 – 1.3185 USD. At the time of writing this article, the currency pair was trading at 1.3165-1.3175.
If it overcomes the resistance at $1.3170 – 1.3190, the aim of the euro will be reaching and testing the 1.3210 – 1.3230 zone. If successful, the upward trend will continue to 1.3250 – 1.3270. If the euro drops below the support zone of 1.3160-1.3145, its next support will be at 1.3120 – 1.3100. In case of a breakdown, the downward trend will continue to 1.3080 – 1.3060.
During yesterday’s session, the pound increased its value from 1.6155 $1.6215 USD.
At the time of writing this article, the currency pair was trading at 1.6200 – 1.6215.
If the sterling successfully overcomes the resistance 1.6215-1.6235, its aim will be reaching and testing the 1.6260-1.6280 USD zone. If successful, the upward trend will continue to 1.6300 – 1.6325. If it falls below the support zone of 1.6210-1.6195, the next support zone is expected to be at 1.6175-1.6155. In case of a breakdown, the downward trend will continue to 1.6135 – 1.6120.
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