#forexbreakfast focus forex (eng)
The past week was characterized by widespread weakness of the Dollar in favor of the oil currencies. Norwegian krone, ruble, and Mexican peso have benefited from the appreciation of the Brent.
Generalized appreciation for the Yen. The excellent GDP figures for the third quarter were driving the Japanese currency, which turned out to be better than expected. Instead, on the European side, general depreciation for the Euro, weakened by the European pandemic situation. It only appreciated against the Dollar.
Good week also for the pound, waiting for an agreement with the European Union, especially after the speech of the Finance Minister Sunak, who spoke about progress in the negotiations.
Among the best currencies of the week, we find the Real. The Turkish lira also rose after the central bank brought the reference rates to 15%. Also, the South African rand appreciated, both against the euro and the dollar, after the central bank opened up to possible rate hikes in 2021.
Eur / Usd
Weak week for the eur / usd exchange, which continues to trade in the trading range between 1.16 and 1.1920. The exchange is testing the upper end of the range this week. Only the break of the resistance at 1.1920 could project the prices towards the 1.2011 area. The daily oscillator is in the overbought area, so we could see some profit-taking. On the downside, support in the 1.1717 area remains to monitor, same thing for the most important in the 1.16 area.
Eur / Gbp
The latest rumors on the Brexit front have brought the exchange below 0.90, towards the support at 0.8873. If the week closes below 0.8873, the decline could continue to the 0.8711 area. On the upside, the resistance to be monitored remains at 0.90. Its overcoming could give strength to the bullish movement.
Eur / Jpy
The week was down for the Eur / Jpy exchange rate, even though it remained above the 123 level. The short-term oscillator is approaching the oversold area. That could subsequently generate a bullish movement. The supports to monitor remain at 122.38 and 120.70 area. While on the upside the first important resistance remains at 125.77.