EUR/usd
The single currency is still being purchased. Besides, since yesterday EURCHF has grown by about 15 pips, which is not much, but is a weekly high. Thus, the SNB can be behind this support for the single currency. But if it is the work of the Swiss, the Bank will soon start selling the euro and buying other currencies for diversification of the reserve portfolio not to stake solely on the depreciating euro with the negative interest rates. Now eurusd is trading at 1.2560 – it is close to the weekly highs. But also it should be noted that the support of the pair is trending up. This behaviour speaks about strong interest of buyers, desiring to lock in profits from USD's growth and balance their portfolios, where the share of the US stocks has increased significantly in the recent month. Among the economic indicators there were many unfavourable for the eurozone, which only confirms the market sentiment to withdraw from USDs despite the fundamental factors. Thus, after the release of the strong data on the French Services PMI the pair rushed up to 1.2575. The rest of the PMIs – Germany's services sector and production, France's Manufacturing index – proved to be in the red zone. The business activity keeps growing, but the growth rate is almost zero. Similarly, the market didn't purchase the US currency even on stronger inflation data from the USA. Consumer prices remained unchanged in comparison with the previous month against the expected decline by 0.1%. The annual rate also didn't change, remaining at the level of 1.7%, while core inflation accelerated to 1.8% from 1.7%. These data make it clear that the US inflation is doing well. And the strong statistical data on producer prices, published two days ago, confirms that there won't be any sharp dips in inflation in the future as well. Data on earnings growth also speaks about this. They grew by 0.4% in October. The number of unemployment claims remains below 300k, which is by 73k less than a week ago. Philly Fed Manufacturing Index and Existing Home Sales also proved to be in the green zone. There are definitely no doubts about growth of the US economy.
GBP/USD
The British pound received support on the release of the strong retail sales data yesterday. Retail sales with Auto Fuel grew by 0.8% against the forecast growth by 0.4%. The annual growth increased from 2.3% to 4.3% and the index excluding auto fuel – by 4.6%. With such statistics GBP's growth by almost a figure looks quite reasonable. Bulls, trying to form a bottom in the pair, may have lots of supporters in the near future.
USD/JPY
The pair started correction against outflow of demand from USD. The trip from 105 to almost 119 went on almost without pullbacks. So, a certain stop is possible before the further upward movement. In the 4-hour charts the pair left the overbuy zone, which increases chances of the further decline. And the traditional Friday's mood for correction can make them even stronger.
oil
Oil got support at the level of 74 usd per WTI barrel. In 2011 it also received support at this level. Traders rushed to purchase Oil against the signs of USD's depreciation and in connection with the possible comments from opec. Many believe that the production quota won't be changed, but there will be a mood to control it in the future in case of the sharp price reduction from the current levels.
