The market seems to be looking for least objectionable currency

January 20, 2017 2:33AM CST

March Dollar: Fortunately for the dollar bulls the US has produced a series of stronger than expected data points this week and that should help to cushion the Greenback against a slight beat on Chinese growth and it might also help the dollar stand up to anti-Trump protests today.  However, we get the sense that the Dollar needs stellar data and hawkish FED dialogue just to arrest the month long slide in prices.  In other words the trend is down and bullish fundamentals only look to have a fleeting influence.  Resistance comes in at 10146-10160 and support at 10625 then 10007-9980 .

Dollar Index Daily

March Euro: We think the Euro is lucky to be holding anywhere near the last months high in the wake of this week’s ECB assessment of growth and inflation in Euro zone.  In fact, given the combination of stronger than expected US data and ECB interest in leaving QE in place, the Euro is fortunate to be holding above 1.06 today.  However, the USD ineptitude is apparent in the wake of 4 straight better than expected data points and hawkish FED dialogue.  In other words, the lack of leadership within the currency markets has allowed the Euro to hold up. Resistance comes in at 10723 and 10761 with support at 10624-10603.

Euro Index Daily

March Yen: Like the Euro and USD, the Yen trade just doesn’t appear to be capable of exerting a dominating opinion on current conditions.  In fact, the Yen overnight has not benefited from a partially up beat BOJ view toward the Japanese economy perhaps because favorable Chinese growth results have, to a degree, reduced safe haven interest in the Yen.  Resistance comes in at 8773 and 8801 with support at 8685-8660.

Japan Daily


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