GBP/USD stronger and USD/CHF weaker
Gary Christie December 19, 2020 5:44 AM
Here is a look at some of the largest movers of the week: Chart
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
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