Euro ranged from 1.28 to 1.300 as the market consolidated recent weakness. EUR/GBP traded above 0.9400 as Pound weakness intensified. The rally in Oil and US stocks let the EURO finish the day on the front foot. German PPI fell 1% in December. Looking ahead for November Industrial Orders are forecast to fall -4.8% vs. -4.7% previously. Sterling after testing the 1.4000 level in an Asian recovery, weak UK data sent the Pound to new 8 year lows under 1.3700. The December Claimant Count dropped to 77.9K from a revised 83.1K previously. Looking ahead for January CBI orders are forecast at -39 vs. -35 previously.
Technical Outlook:
EURO R1: 1.3120 S1:1.2800
R2: 1.3130 S2:1.2780
chart pattern hints towards a bear note . Trading range for the day is expected between 1.2820-1.3100 levels for the day. Momentum and stochastic are seen trending down giving clues for the bearish correction.
GBP R1: 1.4030 S1: 1. 3750
R2: 1.4050 S2: 1. 3740
chart pattern shows a mixed trend for the day. Trading range is expected between 1.3770-1.4020 levels for the day. Currency is trading below the moving average but stochastic is seen trending up giving a mixed outlook.
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