AUD/USD: 0.9110EUR/USD: 1.3600The Euro held the minor support at 1.3560 and jumped in thin trade, apparently on the back of stronger than expected inflation data from Spain and Saxony. The market must be getting desperate for reasons to trade if that was the case, but it will get another chance to jump about a bit today when we get the EU CPI and Employment data as well as German Retail Sales.
Also from Germany in the overnight session, the preliminary November CPI data came in close to expectations at 1.3%, although unemployment rose by 10K against an expected 1K rise.
The Euro is firm and is currently sitting close to 1.3600, below the session high of 1.3618. If we get above there after the EU data later today, the points to watch will be at 1.3627 (61.8% of 1.3832/1.3294) and then the descending trend resistance at around 1.3640. Above that there is further minor resistance at around 1.3650, beyond which could see acceleration towards 1.3710 (76.4%).
On the downside, 1.3560 will again provide the initial support. A break would see 1.3535 (38% of 1.3398/1.3618) and below that would see a run back to 1.3510, 1.3485 (61.8%) and 1.3460 (rising trend support).
The market will again be thin today, and while the momentum seems mildly positive, I am not sure that the Euro will travel too far away from current levels unless the EU data is far away from expectations. I would therefore use 1.3570/1.3630 as a guide, but liquidity will begin to thin out towards Europe lunchtime.
Economic data highlights will include:
German Retail Sales, EU CPI, Unemployment
