EUR/USD: The euro tumbled to a 7-week low as the greenback rallied on growing expectations that the Fed would deliver a third rate hike in December and optimism over the U.S. tax reforms. Moreover, Thursdays ECB meeting minutes, indicating policymakers view that the monetary policy should remain highly accommodative under all scenarios and the political situation in Spain continued to weigh on the major. The European currency traded 0.1 percent down at 1.1699, having touched a low of 1.1686 earlier, its lowest since Aug. 17. Any break below 1.1662 confirms major weakness, a decline till 1.1592 (20- WEEKMA)/1.1500 is possible. On the higher side, nearby resistance is around 1.1720 and any break above will take it to next level till 1.17650/1.17890.
USD/JPY: The dollar rose above the 113.00 handle after the House of Representatives passed the budget on to Senate and moved one step closer to tax cut plans. Additionally, growing speculation that Federal Reserve will hike interest rates over the coming months supported the upward momentum. The major was trading 0.2 percent up at 113.00, hovering towards a high of 113.25 hit last week, its highest since mid-Jul. On the lower side, any close below 112.15 (233 DMA) confirms minor weakness, a decline till 111.13/110 likely. Any break above 113.20 (161.8% fibo) confirms minor bullishness, a jump till 114/114.50.
GBP/USD: Sterling declined to a fresh 1-month low against the dollar on data showing British economic productivity fell at its joint-fastest annual rate since 2013 in the 12 months and on growing worries over Theresa Mays future as British prime minister. Sterling traded 0.3 percent down at 1.3074, having hit a low of 1.3059 earlier, its lowest since Sept. 7. A break below 1.3000 would drag the pair further down till of 1.2850/1.27739. Minor bullishness can be seen above 1.3200 and any break above will take the pair to next level till 1.3250/ 1.3350/ 1.34350. Against the euro, the pound was trading 0.3 percent low at 89.52 pence, having hit a low of 89.54 pence earlier in the day, its lowest since Sept. 14.
AUD/USD: The Australian dollar eased to a 2-1/2 month low as the ongoing upsurge in the U.S. Treasury bond yields and growing prospects for additional Fed rate hike action in December weighed heavily on the major. The Aussie trades 0.2 percent down 0.7776, having hit a low of 0.7743 earlier; it’s lowest since Jul. 14. On the lower side, near-term support is around 0.7740 and any convincing close below will drag the pair till 0.77186/0.7685. The near-term resistance is around 0.7885 (55 –day EMA) and any break above targets 0.7933 (34- day EMA)/0.7976 (20- DMA).