GBP/USD stronger and USD/CHF weaker

Here is a look at some of the largest movers of the week: Chart

Stocks (1)

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

Build your confidence risk free

More from Forex

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.