12/27/2004 6:25 am: EUR/$..1.3528 $/JPY..103.74 GBP/$..1.9224 $/CHF..1.1444 AUD/$..0.7707 $/CAD..1.2296

USD Maintains Sluggish Tone by Korman Tam

No Key Data

In a quiet start to the last week of 2004, the dollar continued to trade on weak footing against the majors, slumping to a fresh record low versus the euro earlier in the session. Nevertheless, trading remained thin overnight with the London market closed for holiday. The greenback hovers near 1.3535 versus the euro and 103.75 against the yen heading into New York trading. Meanwhile, the economic calendar is light this week, with US data to include December consumer confidence, weekly jobless claims and November Chicago PMI.

Advertisement

Euro Edges to Fresh Record High

The euro inched up to a new record high against the dollar in narrow overnight trading to 1.3553. Resistance begins at 1.3580, followed by 1.36 and 1.3640. Additional ceilings are eyed at 1.3670, backed by 1.37 and 1.3725. Interim support starts at 1.3520, backed by 1.35 and 1.3480. Subsequent floors will emerge at 1.3430, backed by 1.34 and 1.3340.

Dollar/yen Backs Away from 104

The yen weakened initially following the earthquake and tsunami’s the shook parts of Asia this weekend, with a death toll of over 20,000. Traders sent the yen beneath the 104-level versus the dollar, but quickly recovered.

The coming week will see Japan’s November household spending, November unemployment rate, November large retailer’s sales, and November industrial production.

Support for the pair is seen at 103.70, backed by 103.35 – the multi-year low and 103. A move lower will target 102.65, followed by 102.20 and 102. Resistance is seen at 10420, followed by 104.70 and 105. Subsequent ceilings are eyed at 105.50, followed by 106 and 106.40.

Aussie Buoyed Above 0.77

AUDUSD climbed above the 0.77-level to its highest level in nearly 3-weeks at 0.7725. Further gains will target 0.7760, followed by 0.78 and 0.7840-50. Subsequent ceilings are eyed at 0.7880, backed by 0.79 and 0.7944 – the November 26 high. Losses will encounter support at 0.77, followed by 0.7670 and 0.7640. Additional floors are seen at 0.76, backed by 0.7530 and 0.75.

Cable Inches Higher

Cable edged up slightly higher overnight, rising to 1.9262. Resistance is seen at 1.93, followed by 1.9330 and 1.9370. Additional gains will target 1.94, backed by 1.9440 and 1.95. Meanwhile, losses will encounter support at 1.9210, followed by 1.9175 and 1.9130. Subsequent floors are seen at 1.91, followed by 1.9070 and 1.9040.