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The U.S. dollar was seen extending its declines on Wednesday after the comments from U.S. Treasury Secretary; Steven Mnuchin said that the U.S. administration preferred a weaker currency. Mnuchin, speaking at the World Economic Forum in Davos said that a weaker dollar was good for trade, while also talking about new tariffs and trade pacts.

New Zealand's quarterly inflation data for the fourth quarter of 2017 showed that consumer prices rose less than expected at a pace of 0.1%. This was weaker than the forecasts of a 0.4% increase on the quarter. Annual inflation rate was seen rising at a pace of 1.6% compared to 1.9% previously.

Looking ahead, the ECB's monetary policy is scheduled for today. Markets will be looking to the ECB's statement and Draghi's press conference while expecting to see no changes to the monetary policy. Later in the evening, Japan's inflation data will be coming out. No changes are expected as inflation in Japan is expected to rise at a steady pace from the previous month.

Sunrise Market Commentary

• Rates: A tough task for ECB Draghi
  Protectionist US comments caused new tests of key US yield resistance levels. Trump's speech, trade balance data and Q4 GDP might decide over a break tomorrow. Attention turn to EMU today with the ECB meeting. Draghi will try to downplay all early ECB exit speculation, but we think that markets won't buy it. The normalization genie is out the bottle.
• Currencies: USD hammered. Markets fear more US protectionism
  The USD decline accelerated yesterday. Comments from US officials in Davos suggest that the US might take further protectionist action and that the US is happy with a weak dollar. ECB's Draghi will receive plenty of questions on the rise of the euro today. Has he enough ammunition to ease FX swings as EUR/USD's rise is mainly USD weakness

The Sunrise Headlines

• US stock markets ended mixed yesterday with Nasdaq underperforming (-0.6%). Asian stock markets trade mixed overnight with Japan the exception to the rule, losing more than 1% on yen strength.
• The dollar got a tremendous blow yesterday following protectionist comments by Treasury Secretary Mnuchin and Commerce Secretary Ross. The worse seems over in overnight trading, though USD remains under modest pressure.
• President Trump said he was willing to testify under oath in special counsel Mueller's investigation into Russia's interference in the 2016 election, the latest twist in a probe that he has repeatedly denounced as a “witch hunt.”
• Saudi Arabia's energy minister took a rare sideways swipe at the IEA, accusing the body of overhyping the impact of US shale growth on the oil market. Brent crude moved to $71/b, mainly buoyed by the weaker dollar though.
• New Zealand's consumer prices rose at a slower-than-expected pace in the Q4 2017 (0.1% Q/Q & 1.6% Y/Y), weighed by the falling costs of cars and food and hosing down expectations that the central bank will raise interest rates this year.
• South Korea's GDP saw a quarterly contraction in the final three months of 2017 (-0.2% Q/Q) after expanding at the fastest pace in seven years during the third quarter (1.5% Q/Q).
• Main attention turns to the ECB meeting today. Eco data include German IFO, US weekly jobless claims and new home sales. The trade balance release is delayed to tomorrow because of the brief government shutdown

Currencies: USD Hammered. Markets Fear More US Protectionism

Fear of US protectionism hammers the dollar

The USD sell-off accelerated yesterday. Comments from US officials raised fears that the US would take an ever more protectionist approach. US Treasury Secretary Mnuchin said that the USD decline is good for US trade short-term, unsettling markets. EUR/USD rose a full big figure to close at 1.2408. USD/JPY selling accelerated. The pair finished the day at 109.22. EMU January PMI's were again strong, but no big issue for EUR/USD trading. USD weakness prevailed.

The debate on US protectionism dominates Asian markets overnight. The tradeweighted dollar (DXY) declines below 0.89, the lowest level since December 2014. USD/JPY is testing the 109 big figure. EUR/USD extends gains north of 1.24. Japanese equities lose about 1%. The loss on other markets is modest. The calendar heats up today with German Ifo confidence, the ECB meeting and series of US data. It is probably too early for the ECB to change forward guidance, even as the latest Minutes showed that the internal debate has started. Draghi will receive questions on the rise of the euro. The ECB isn't happy with the pace of the rise. Question is whether Draghi has ammunition to ease the trend as EUR/USD's rise is mainly USD weakness. In this respect, comments of US officials in Davos including tomorrow's speech of President Trump, are probably more important for the next directional move in global FX rather than Draghi's press conference today. The USD decline is out of line with the eco fundamentals and the developments on the interest rate markets, but politics dominate for now. This remains a binary risk. The dollar is a falling knife. For now, it remains dangerous to try to catch it. From a technical point of view, 1.2596 (62% retracement) is the next important resistance. A return below 1.2165 would be a first indication of that the USD decline is easing.

Sterling rose sharply against the dollar yesterday, but also against the euro, supported by good UK labour data and hope on a constructive outcome of the Brexit talks. EUR/GBP dropped to the low 0.87 area. Today the January CBI reported sales balance is expected to decline slightly. The EC holds a seminar to discuss future Brexit ties. EUR/GBP is nearing key 0.8690 support. A break would be technically relevant. For now we don't preposition for a sustained break as the euro is also trading strong. However, more positive news from Brexit could reinforce GBP momentum

EUR/USD: USD sell-off continues on fears for protectionism. Has Draghi ammunition to ease the pain?

Download entire Sunrise Market Commentary

Yesterday, Senior US Officials took the lead from their President and made clear the US position on Trade. Commerce Secretary Wilbur Ross took aim at China, saying the Chinese 2025 technology plan is a ‘direct threat’ to US technological dominance. The Chinese plan aims to support and develop sectors of their economy such as artificial intelligence, electric cars and electronics. Of concern to the US is IP theft and encroachment. Earlier, he said that the reaction from the US is because of inappropriate behaviour of trading partners. Adhering to global trade rules isn’t protectionist and the US is often accused of protectionism. There will be a very busy trade agenda in terms of those actions by the US. He also said trade wars are fought ‘every single day’ and it was up to the Chinese to decide if they want to retaliate. If there is a reaction from China then the US would weigh its options. But there will be more tariff measures to come.

US Treasury Secretary Steve Mnuchin said that ‘a weaker dollar is good for the US’ and that it was good for trade. He also said the vote from the market on tax reform is very positive, and that he is not particularly concerned about China’s US treasury buying, and that it’s not an issue in talks with China. Tax reform brings back trillions of Dollars to the US. The US Dollar index has been driven to a three-month low and is weaker against other currencies.

In reaction, China’s Ministry of Commerce attempted to cool the situation by saying they hope to handle frictions with the US in the proper manner. China is to take appropriate measures against unilateral moves. They are always open to dialogue and cooperation with the US. China doesn’t want an escalation of trade spats with the US. The outlook for trade frictions in 2018 is still severe.

German Markit Manufacturing PMI (Jan) was released at 61.2 v an expected 63.0, from 63.3 previously. Markit Services PMI (Jan) was 57.0 v an expected 55.6, from 55.8 previously. Markit PMI Composite (Jan) was 58.8 v an expected 58.6, from 58.9 prior. EURUSD rallied from 1.23120 following this data release.

Eurozone Markit Manufacturing PMI (Jan) was 59.6 v an expected 60.3, from 60.6 previously. Markit Services PMI (Jan) was 57.6 v an expected 56.4, from 56.6 previously. Markit PMI Composite (Jan) was 58.6 v an expected 57.9, from 58.1 prior. EURUSD moved higher to 1.23557 from 1.23397.

UK Average Earnings Excluding Bonus (3Mo/Yr) (Nov) was 2.4% v an expected 2.3%, from 2.3% previously. Claimant Count Change (Dec) was 8.6K against an expected 5.4K, from a previous reading of 5.9K, which was revised up to 12.2K. ILO Unemployment Rate (3M) (Nov) came in as expected, unchanged at 4.3%. Average Earnings Including Bonus (3Mo/Yr) (Nov) was also as expected, unchanged at 2.5%. Claimant Count Rate (Dec) was 2.4% from 2.3% previously. GBPUSD moved higher into resistance at 1.41182 following this data release.

US Housing Price Index (MoM) (Nov) was 0.4% against an expected 0.3%, from a reading of 0.5% previously, which was revised up to 0.6%.

US Markit Manufacturing PMI (Jan) was 55.5 v an expected 55.0, from 55.1 previously. Markit Services PMI (Jan) was 53.3 against an expected 54.0, from 53.7 previously. Markit PMI Composite (Jan) was 53.8 against an expected 53.5, from 54.1 prior. USD crosses may be heavily traded as a result of this data.

US EIA Crude Oil Stocks Change (Jan 19) came in with a smaller draw than expected of -1.071M. The previous reading from last week was -6.861M. The expected reading this time is in the region of -1.600M. WTI rose to $65.40 from $64.53.

EURUSD is up 0.15% overnight, trading around 1.24262.

USDJPY is down -0.13% in early session trading at around 109.070.

GBPUSD is up 0.39% to trade around 1.42890.

USDCAD is down -0.25%, trading around 1.23170.

Gold is up 0.33% in early morning trading at around $1,362.80.

WTI is up 0.47% this morning, trading around $66.17.

Major data releases for today:

At 09:00 GMT, German IFO – Current Assessment (Jan) is expected to come in unchanged at 125.4. IFO – Business Climate (Jan) is expected at 117.1 v 117.2 previously. IFO – Expectations (Jan) is expected to be 109.4 from 109.5 prior. EUR crosses could see a spike in volatility should actual released data differ from the expected consensus.

At 12:45 GMT, the ECB Interest Rate Decision will be released with rates expected to be left unchanged at 0%. ECB Deposit Rate Decision will also be released at this time, with rates expected to be left unchanged at -0.4%. An ECB Press Conference is to follow at 13:30 GMT.

At 13:30 GMT, Canadian Retail Sales Ex-Autos (MoM) (Nov) is expected to be unchanged at 0.8%. Retail Sales (MoM) (Nov) is expected to be 0.7% against 1.5% previously. CAD crosses may be affected by this release.

At 15:00 GMT, US New Home Sales (MoM) (Nov) is expected to come in at 0.679M from 0.733M previously. New Home Sales Change (MoM) (Nov) is expected at -7.9% v 17.5% previously. USD crosses may be heavily traded as a result of this data.

At 23:50 GMT, the Bank of Japan Monetary Policy Meeting Minutes will be released.

Headlines/Economic Data

General Trend: Asian equity markets trade mostly lower

Utilities underperform

Energy shares outperform: During Asian session, Brent Crude Oil Futures traded at $70.95/bbl and WTI Futures hit $66.22/bbl (both the highest since Dec 2014)

Kospi Index outperforms, as chipmaker Hynix gains after Q4 results and guidance

US dollar (USD) continues to weaken amid comments from US officials and trade concerns

Euro gains ahead of upcoming ECB meeting

South Korean Won (KRW) gains despite first q/q GDP contraction since 2008

Kiwi (NZD) pares some of the losses seen after weaker than expected Q4 CPI

PBoC skips open market operation (OMO) for the first time since Jan 9th

US corporate earnings pick up on Thursday’s session.

Later today, Malaysia Central Bank (BNM) expected to raise rates for the first time since July 2014

Japan

Nikkei 225 opened -0.8%; closed -1.1%

TOPIX Electric Appliances Index -1.3% (Fanuc -0.7%, Advantest -3%, Canon Inc -1%, Fuji Electric -1.8%, Kyocera -1.6%, Mitsubishi Electric -1.9%. Sony -2.9%); Fanuc is expected to report earnings after the close on Friday

Financials trade generally weaker: Mitsubishi UFJ -1.7%, Mizuho -1.3%, Sumitomo Mitsui Financial -1.1%: TOPIX Securities Index -1.2%

Automakers trade weaker amid recent gains in Yen: Toyota -0.9%, Honda -1.1%

Isetan [3099.JP] -3% (due to report earnings today), Fast Retailing declined over 2%

Dentsu [4324.JP]: +4%(broker commentary)

Komatsu [6301.JP] -0.9% (Caterpillar due to report earnings on Thursday)

USD/JPY Nikkei speculates on recent yen strength, if is a product of a weak dollar or actually strengthening

(JP) Japan PM Abe: Must not waste the chance to do all to beat deflation

JGB (JP) Japan MoF sells ¥0.8T v ¥1.0T indicated in 0.60% (prior 0.60%) 20-yr bonds; avg yield 0.592% v 0.573% prior; bid to cover 4.17x v 4.56x prior

Looking Ahead: Japan Dec CPI data and BoJ Dec 2017 policy meeting minutes due for release on Friday

Korea

Kospi opened flat

(KR) SOUTH KOREA Q4 PRELIMINARY GDP Q/Q: -0.2% V 0.1%E; Y/Y: 3.0% V 3.4%E; 2017 GDP 3.1%

Hynix [000660.KR] Gains over 4%: Reports Q4 (KRW) Net 3.22T v 3.4Te, Op 4.5T v 4.3Te; Rev 9.03T v 8.9Te; Guides 2018 DRAM demand +20% y/y, NAND demand up ~40% y/y; Guides FY18 Capex to rise from KRW10.3T in 2017

Internet firm Naver [035420.KR] +4%: Reports Q4 (KRW) Net 180.2B v 223.5Be; Op 291.1B v 318.9Be; Rev 1.27T v 1.26Te; Announces KRW119B buyback

Hyundai Motor [005380.KR]: Declines by over 0.5% on session: Reports Q4 (KRW) Net 1.03T v 1.1Te, Op 775B v 1.1Te; Rev 24.5T v 24.1Te; warns 2018 to continue with slower global demand

Samsung Electronics +1.5% (tracks strength in Hynix)

(KR) North Korea govt spokesperson: advocates for 'rapid' improvement in North-South relationship

(KR) South Korea to establish special task force to probe cryptocurrency trading - Korean press

(KR) Bank of Korea (BOK) Statistic head: GDP fell in Q4 due to fewer work days and base effects

China/Hong Kong

Hang Seng opened -0.1%, Shanghai Composite -0.1%

Hang Seng Consumer Goods Index -0.5%: Esprit [0330.HK] has declined by over 15% (profit warning)

Hang Seng Financials Index -0.9%, Property/Construction -0.4%

Hang Seng Information Tech index -1%: Leshi Internet trades limit down (-10%) for the second straight session (shares resumed trading on Wed following 9 month halt)

Hang Seng Energy Index +1.8%, Materials +1.9%

MGM China Holdings [2282.HK]: Has declined by over 5% (delayed opening of MGM Cotai, affirmed cost est related to the project)

China Nuclear Engineering Corp [601611.CN ]China said to approve merger between Nuclear Corp and Nuclear Engineering - Chinese Press

(CN) Commerce Sec Ross: Commerce Dept's report on Chinese intellectual property violations will be 'a little while'; China's 2025 technology plan is a direct threat to the US;

China is exporting more steel than the US has in capacity

(CN) China PBOC Gov Zhou was not re-elected to CPPCC National Committee - Xinhua

(CN) CHINA PBOC SKIPS OMO v injected CNY220B injected in 7,14 and 63-day reverse repos prior (1st skip since Jan 9th), Drains net CNY120B; Skipped OMO to safeguard bank liquidity stability, Targeted RRR cut to offset reverse repo demand

USD/CNY (CN) PBOC SETS YUAN REFERENCE RATE AT 6.3724 V 6.3916 PRIOR (strongest fix since Nov 13th, 2015)

(CN) China Commerce Ministry (MOFCOM) Spokesperson Gao Feng: "strongly" opposes USTR report

(CN) China National Development and Reform Commission (NDRC) deputy sec general Fan Hengshan: there are "sufficient conditions" to sustain a growth rate of between 6.5-6.8%

Australia/New Zealand

ASX 200 opened +0.3%; closed -0.1%

ASX 200 Utilities Index -1.3%, Financials -0.2%; Resources Index +0.5%

(NZ) NEW ZEALAND Q4 CPI Q/Q: 0.1% V 0.4%E; Y/Y: 1.6% V 1.9%E

(NZ) New Zealand Workplace Relations Minister: Want to raise wages by collective bargaining

(NZ) According to analysts weaker than expected New Zealand Q4 CPI means markets will have to change their view that the RBNZ will raise rates a quarter-point later this year

(AU) Australia Foreign Exchange Committee Turnover report: Oct Australia Market avg FX trading $111.3B/day v $125.8B prior

(NZ) New Zealand sells NZ$150M in 3.5% 2033 bonds; avg yield 3.2576%; bid to cover 3.28x

(NZ) RBNZ: Q4 Sectoral Factor Model Inflation Index y/y: +1.4% v 1.4% prior

eServGlobal [ESV.AU] Cuts 14-months core revenue €8.3-8.5M (prior €9.7-11.0); -12%

(AU) S&P Affirms Australia sovereign AAA rating; Outlook negative

Looking ahead: Australia markets closed tomorrow for national holiday

Other Asia

(PH) Philippines Treasurer de Leon: Nation can cope with rising rates; planning local debt swap (1st since 2015); looking at yuan debt sale and Japan market tap

(PH) Philippines Environment Sec: Ban on open-pit mining remains

UMC [2303.TW]: +1% (Q4 net profit above ests)

(VN) Vietnam Central Bank orders banks to lower property loans

Looking Ahead: Malaysia Central Bank is due to make its monetary policy decision at 2:00 am EST (7 GMT)

North America

US equities ended mostly lower: Dow +0.2%, S&P500 -0.1%, Nasdaq -0.6%, Russell 2000 -0.7%
S&P500 Technology Sector -0.8%, Utilities -0.6%

Ford [F]: Reports Q4 $0.39 v $0.42e, Rev $41.3B v $37.2Be; Affirms FY18 $1.45-1.70 v $1.53e (prior $1.45-1.70)

(US) White House spokesperson Sanders: The Dollar is very stable; the White House believes in a free-floating currency [** NOTE: Earlier: (US) Treasury Sec Mnuchin: Not concerned about the level of the USD in the short-term; Weaker USD is good for trade]

(US) Pres Trump: would answer questions from Special Counsel Mueller under oath, will tell him there was no collusion with Russia

(US) DEC EXISTING HOME SALES: 5.57M V 5.70ME

(US) DOE CRUDE: -1.1M V -2ME

(US) TREASURY'S $34B 5-YEAR NOTE AUCTION DRAWS: 2.434%; BID-TO-COVER RATIO: 2.48 V 2.36 PRIOR AND 2.44 OVER THE LAST 12 AUCTIONS (highest yield since Apr 2010, highest BTC since Sept)

(MX) Mexico Central Bank Gov: Expects inflation to continue to slow in 2018 towards 3% target
Looking Ahead: Canada Nov Core Retail Sales, US Dec New Home Sales due for release

On Thursday corporate earnings are expected out of companies including 3M, Biogen, Caterpillar, Celgene, Freeport-McMoran, Intel, Intuitive Surgical, JetBlue, KLA-Tencor, Oshkosh, Raytheon, Robert Half, STMicroelectronics, Sherwin-Williams, Southwest Airlines, Starbucks, Western Digital, Wynn Resorts

Europe

(FR) FRANCE DEC NET CHANGE JOBSEEKERS: -2.7K V -19.3KE

(SA) Saudi Oil Min al-Falih: US oil boom is a threat as Mexican and Venezuelan output is declining; does not see signs of a significant oil demand slowdown; We only target inventories; we don't have specific price target for oil; It is highly unlikely OPEC will change course in June; There will be a time when OPEC can adjust cuts level; June could be good opportunity for fine-tuning OPEC target

(UK) UK Office for Budget Responsibility's Chote: UK economy is 'weak and stable' with 50% chance of another recession in five years - Independent
Looking Ahead: ECB rate decision, Germany Jan Ifo Survey due for release

Levels as of 01:00ET

Nikkei225 -1.1%, Hang Seng -0.2%; Shanghai Composite +0.1%; ASX200 -0.1%, Kospi +0.8%

Equity Futures: S&P500 -0.1%; Nasdaq100 +0.0%, Dax -0.0%; FTSE100 -0.2%

EUR 1.2440-1.2385; JPY 109.48-108.92; AUD 0.8106-0.8043;NZD 0.7393-0.7326

Feb Gold +0.5% at $1,362/oz; Mar Crude Oil +1.0% at $66.28/brl; Mar Copper +0.6% at $3.25/lb

For the 24 hours to 23:00 GMT, the AUD rose 0.75% against the USD and closed at 0.8055.

LME Copper prices rose 0.6% or $38.0/MT to $6943.0/MT. Aluminium prices rose 0.1% or $2.5/MT to $2216.0/MT.

In the Asian session, at GMT0400, the pair is trading at 0.8095, with the AUD trading 0.5% higher against the USD from yesterday’s close.

The pair is expected to find support at 0.8024, and a fall through could take it to the next support level of 0.7953. The pair is expected to find its first resistance at 0.8136, and a rise through could take it to the next resistance level of 0.8177.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the EUR rose 0.84% against the USD and closed at 1.2400, after latest data confirmed that economic growth across the Euro-zone continued its staggering rate of expansion in the new year.

The Euro-zone's preliminary Markit services PMI registered an unexpected rise to a level of 57.6 in January, rising at its fastest pace since August 2007. The PMI had recorded a level of 56.6 in the previous month, while markets had expected for a fall to a level of 56.4. On the other hand, the region's flash Markit manufacturing PMI eased more-than-estimated to a level of 59.6 in January, after posting a record high reading of 60.6 in the prior month. Market anticipation was for the PMI to ease to a level of 60.3.

Separately, activity in Germany's services sector surprisingly jumped to a level of 57.0 in January, accelerating at its quickest pace since March 2011. The PMI had registered a level of 55.8 in the prior month, while investors had envisaged for a drop to a level of 55.5. On the contrary, growth in the nation's manufacturing sector slowed to a 3-month low level of 61.2 in January, compared to market expectations for a fall to a level of 63.0 and following a level of 63.3 in the previous month.

The greenback nursed losses against its key counterparts, prompted by comments from the US Treasury Secretary, Steve Mnuchin, that he favoured a weaker US Dollar as it is attractive for trade purposes.

On the macro front, manufacturing growth in the US surprised to the upside, after it climbed to a nearly 3-year high level of 55.5 in January, defying market expectations for a fall to a level of 55.0, thus fuelling optimism over the health of the nation's manufacturing sector. In the prior month, the PMI had registered a reading of 55.1. However, expansion in the nation's services sector unexpectedly slowed to a 9-month low level of 53.3 in January, confounding market estimates for a rise to a level of 54.3. In the prior month, the PMI had recorded a reading of 53.7.

Other data revealed that existing home sales in US fell 3.6% on monthly basis to a level of 5.57 million in December, declining to its lowest level in 10 months, while markets had anticipated for a fall to a level of 5.70 million. In the previous month, existing home sales had recorded a revised reading of 5.78 million. On the other hand, the nation's MBA mortgage applications grew 4.5% in the week ended 19 January, after recording a gain of 4.1% in the prior week.

In the Asian session, at GMT0400, the pair is trading at 1.2430, with the EUR trading 0.24% higher against the USD from yesterday's close.

The pair is expected to find support at 1.2341, and a fall through could take it to the next support level of 1.2251. The pair is expected to find its first resistance at 1.2480, and a rise through could take it to the next resistance level of 1.2529.

Moving ahead, all eyes would be on the European Central Bank's (ECB) interest rate decision, scheduled later in the day. Also, Germany's GfK consumer confidence for February as well as the Ifo business climate and expectations indices for January, will keep investors on their toes. Furthermore, in the US, initial jobless claims along with advance goods trade balance and new home sales data for December, will garner significant amount of investor attention.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the GBP rose 1.67% against the USD and closed at 1.4236, propelled by better-than-expected employment readings in the UK.

Data revealed that Britain's ILO unemployment rate remained unchanged at a 42-year low of 4.3% in the three months to November 2017, at par with market expectations. Additionally, the nation's average earnings including bonus grew 2.5% on a yearly basis in the September-November 2017 period, meeting market expectations. In the August-October period, the average earnings including bonus had registered a similar rise.

Other data revealed that the number of people employed in the UK unexpectedly advanced by 102.0K in the three months to November 2017, confounding market anticipations for a decline of 12.0K and after recording a drop of 56.0K in the August-October 2017 period.

In the Asian session, at GMT0400, the pair is trading at 1.4290, with the GBP trading 0.38% higher against the USD from yesterday's close.

The pair is expected to find support at 1.4102, and a fall through could take it to the next support level of 1.3915. The pair is expected to find its first resistance at 1.4391, and a rise through could take it to the next resistance level of 1.4493.

Going ahead, UK's BBA mortgage approvals data for December, scheduled to release in a few hours, will be on investors' radar.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD declined 0.98% against the JPY and closed at 109.20.

In the Asian session, at GMT0400, the pair is trading at 109.04, with the USD trading 0.15% lower against the JPY from yesterday’s close.

The pair is expected to find support at 108.61, and a fall through could take it to the next support level of 108.18. The pair is expected to find its first resistance at 109.78, and a rise through could take it to the next resistance level of 110.52.

Looking forward, market participants would keep a close watch on the minutes of the Bank of Japan’s (BoJ) policy meeting as well as Japan’s inflation figures, both due to release overnight.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD declined 1.26% against the CHF and closed at 0.9457.

In the Asian session, at GMT0400, the pair is trading at 0.9437, with the USD trading 0.21% lower against the CHF from yesterday’s close.

The pair is expected to find support at 0.9388, and a fall through could take it to the next support level of 0.9339. The pair is expected to find its first resistance at 0.9525, and a rise through could take it to the next resistance level of 0.9613.

The currency pair is trading lower its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD declined 0.65% against the CAD and closed at 1.2344.

In the Asian session, at GMT0400, the pair is trading at 1.2315, with the USD trading 0.23% lower against the CAD from yesterday’s close.

The pair is expected to find support at 1.2273, and a fall through could take it to the next support level of 1.2232. The pair is expected to find its first resistance at 1.2388, and a rise through could take it to the next resistance level of 1.2462.

This afternoon will bring a crucial Canadian release, namely the retail sales data for November

The currency pair is trading below its 20 Hr and 50 Hr moving averages.