EUR/usd
Two steps back and a step forward – this is approximately the way in which describe the dollar's performance in the recent days can be described. On Friday and yesterday it was retreating, thus giving bulls an opportunity to test 1.3700. Yet, all the attempts to get above 1.3710 were not very confident and were immediately followed by a pullback at a safe distance. Now trading is held at 1.3680 and the dollar is getting some support as the Fed's hawk Fisher has mentioned that he was advocating a bigger cut of the purchases last week. This news, as well as the news, which is scheduled for release this afternoon, should be treated in view of an almost empty market. And this means that the rate may stay within the range of 15-30 pips and remain unchanged by the end of the holiday season. Under such conditions most market players prefer to remain on the sidelines as currencies may show a distorted reaction to the news, in other words, behave unpredictably. However, those, who will manage to define the trading range correctly and be able to scalp, may earn good money in these days. The main thing here is to remember about money management and in case of sharp unfavourable shifts of the market adjust to the new reality. We'll risk supposing that now the market prefers to consolidate at 1.3660 – 1.3710. Then stops should be placed at some distance off the channel not to get swept by a wild movement of the half-empty market, which can easily provoke a wave of big orders.
GBP/USD
The pound is also flat, but with a slightly negative deviation against the dollar. You shouldn't think that the pound is better than the euro as this deviation has been formed with consideration for the reaction to the Fed and the euro suffered great losses then. So the pound remains one of the best currencies of the developed countries. At least, for the time of the holiday lull.
USD/JPY
The Japanese government is planning to cut the budget deficit in the coming year by means of the spending reduction and income rise resulting from the economic growth. Skeptics point at the prematurity of the budget consolidation as the economy hasn't provided a clear evidence of its steady growth. On the messages about consolidation usdjpy has managed to reverse up, but it is not strong enough to come off 104. As a result, the pair from yesterday's low of 103.75 grew to 104.40 and is now trading at 104.15.
USD/CAD
The Canadian currency has been growing since the end of the last week and is now going through a correction,. Yet, today we already can see some signs that systematic buying has resumed. The profit-taking, provoked by breaking through 1.0700 last week, has proved to be short-term. Below 1.0600 there are enough buyers, who stake on the growth of the US currency. It is remarkable that the Loonie was sold despite the news about the economic growth by 0.3% in October against the expected 0.1%.
