Big news for this week!

Below are some announcements that may impact the markets this week:

News

This week the Euro rose to a 6 week high versus the US dollar.  The US dollar itself has hit 103.80 for the first time since May (and October 2008...more later).  The Euro has benefited from decent trade with China but one cannot help but think that the Euro is looking a bit toppy.  Indeed, Germany industrial production actually fell in October  - the question remains, for how long can one country carry the  other Eurozone countries around it's neck before the noose tightens?

Last week we saw some intraday spikes in both directions for the Euro and GBP but today saw a sustained sell off in GBP, although good economic news has kept the upside momentum for the moment.

YEN ANALYSIS

The Yen V US dollar has breezed through the 101.50 support area to spike today at 103.90, a decline last seen in May 2013 and before that in October 2008.  Technical analysts believe that the movement though 100.62 was a critical pivot for the pair.

The Yen has fallen 4% in November which makes it one of the worst performers of the majors; there seems to be no let-up as Governor Kuroda aims to keep monetary policy in line until inflation becomes stable at 2%.

As you can see above on the daily chart the Yen continues to weaken.  All central bankers, though, need to ensure that weakness of their currency does not become a run on stability.  However, export opportunities continue to favour the current situation.

Happy Trading!!

The Hirose Team