Wednesday’s session in terms of macroeconomic calendar will not guarantee too many emotions. During the night we met only two publications from the Japanese market and during the European session there will be two more indicators. We invite you to our morning macro comment.
Retail sales in Land of Rising Sun markedly up
At 0:50 we got to know the results of November retail sales in Japan, where the dynamics in terms of YoY increased by 1.7% (forecast 0.9%, the result of October’s -0.1%). At the same time was also published information on industrial MoM. Here dynamics also clearly rebounds from the October ceiling of 0.0% to 1.5% (with projections of 1.6%).
In case of Japanese yen, however, it did not cause excessive euphoria. In first hours of the session, USDJPY markedly increased and only during European morning began to slide.
On the EURJPY also without much difference. Initial increases, rebound from the intraday ceiling and slides in favor of JPY:
Calm calendar – preparation to the session
Investors during the Wednesday session (December 28) should look at the calendar again at 10:30 when there will be information about Mortgage Approvals published by the British Bankers’ Association (BBA) and then at 16:00 Pending Home Sales released by the National Association of Realtors YoY for November in the US
Among the interesting pairs worth watching is USD/PLN. Yesterday’s daily candle in form of a pin bar is testing November highs at 4.2160 and the 23.6% of the abolition of December depreciation. At this point, it pushes the price back below the ceiling of 4.2000
Soon the situation should develop also on USD / CAD. If the resistance area 50% Fibonacci retracement will be defeated and tested from the top we will get the opportunity to trade on growth. At this point, however, bears are winning and any sales signal may lead to open short position. Potential supply areas are on interval H4 and H1 but it is worth to wait for confirmation from the D1:
