Disappointing UK PMI prints for November drags the pair below the 1.2900 handle. The near-term technical set-up seems to have shifted in favour of bearish traders. The GBP/USD pair held on to its weaker tone through the mid-European session on Friday, albeit has managed to rebound around 20 pips from weekly lows and is currently hovering around the 1.2880-85 region. A sustained break below the 1.2900 round-figure mark, coinciding with 200-hour SMA, was seen as a key trigger for bearish traders following the release of weaker-than-expected flash UK PMI prints for November. Against the backdrop of the pair’s repeated failure ahead of the key 1.30 psychological mark, acceptance below the mentioned handle now support prospects for a further near-term depreciating move. Hence, some follow-through weakness, back towards challenging the 1.2800 handle, now looks a distinct possibility, albeit slightly oversold conditions on the hourly chart warrant some caution for bearish traders. On the fl..

Chinese President Xi says he is not afraid of a trade war with US. US could reportedly delay December tariff hike if there is no deal. US Dollar Index moves sideways near 98 ahead of PMI data. The NZD/USD pair is having a difficult time making a decisive move despite the modest recovery witnessed on Friday. As of writing, the pair is trading at 0.6417, adding 0.25% on a daily basis. Investors continue to assess US-China trade developments The lack of clarity on the completion of phase one of the United States (US)-China trade deal ahead of the scheduled tariff hikes on December 15th seems to be forcing investors to refrain from making large bets. The South China Morning Post (SCMP) on Thursday claimed that the White House could delay the tariff increase on Chinese imports even if a deal is not finalized but there is good progress in the next round of face-to-face talks. During the Asian trading hours on Friday, Chinese President Xi Jinping reiterated that they want to work out p..

EUR/USD’s weekly advance lost traction in the vicinity of the 1.1100 handle. Inability of the pair to overcome recent tops could spark some correction. EUR/USD continues to fade the initial optimism and is now under pressure after being rejected from weekly highs in the boundaries of the 1.11 mark on Thursday. Weekly highs are also reinforced by the 100-day SMA, today at 1.1086. Ideally, spot should surpass this area in the short-term horizon in order to open the door for extra gains. On the opposite side, if sellers regain the upper hand, another visit to the key support near 1.1040 should return to the radar. A breakdown of this important area of contention, should reassert the downside bias.

The key target of the European Central Bank's (ECB) monetary policy is inflation, noted the ECB Governing Council member and Slovak central bank chief Peter Kazimir on Friday. "Its side effect is the monetary policy that supports growth and that is not going to change in coming months," Kazimir added. The EUR/USD pair largely ignored these remarks and was last seen trading at 1.1058, where it was virtually unchanged on a daily basis. Commenting on the ECB's policy review, "would be normal to wait while changes on board and council are completed," Kazimir said. "Based on meetings with business representatives, I am cautiously optimistic on economic outlook but will not predict hard data."

USD/JPY is seen grinding lower in the next weeks, with the next target at the 108.00 handle, noted FX Strategists at UOB Group. Key Quotes 24-hour view: “USD dipped to 108.27 before rebounding quickly to touch 108.69. The registered range was close to our expected range of 108.30/108.70. Momentum indicators are turning neutral and USD could continue to trade sideways, likely between 108.30 and 108.75”. Next 1-3 weeks: “When USD dropped to 108.23 last Thursday, we ‘upgraded’ the downside risk and indicated on Friday (15 Nov, spot at 108.50) that USD is “expected to trade with a downward bias towards 108.00”. While USD held above 108.23 and traded mostly sideways since then, we continue to the view that the risk is on the downside. That said, after the price action over the past few days, 108.00 may not come into the picture so soon. On the upside, only a break of 109.00 (‘strong resistance’ level previously at 109.15) would indicate that the current downward pressure has eased”.

The move up in DXY is once again flirting with the 98.00 region. Immediately above aligns the monthly peaks in the mid-98.00s. The index is now navigating the area of weekly highs at/around the key 98.00 handle. The gradual recovery from recent lows is also testing the 10-day and 100-day SMAs just above 98.00 the figure. Immediately to the upside now emerges the 55-day at 98.23. Further up is located the 98.50 region, or monthly highs. A sustainable break of this hurdle should pave the way for a move to 99.00 and beyond. In the meantime, as long as the 200-day SMA at 97.57 holds the downside, the constructive outlook on DXY is seen unchanged.

USD/JPY is seen grinding lower in the next weeks, with the next target at the 108.00 handle, noted FX Strategists at UOB Group. Key Quotes 24-hour view: “USD dipped to 108.27 before rebounding quickly to touch 108.69. The registered range was close to our expected range of 108.30/108.70. Momentum indicators are turning neutral and USD could continue to trade sideways, likely between 108.30 and 108.75”. Next 1-3 weeks: “When USD dropped to 108.23 last Thursday, we ‘upgraded’ the downside risk and indicated on Friday (15 Nov, spot at 108.50) that USD is “expected to trade with a downward bias towards 108.00”. While USD held above 108.23 and traded mostly sideways since then, we continue to the view that the risk is on the downside. That said, after the price action over the past few days, 108.00 may not come into the picture so soon. On the upside, only a break of 109.00 (‘strong resistance’ level previously at 109.15) would indicate that the current downward pressure has eased”.