The US dollar continues to hold steady amid a quiet few days. Economic data from the US was confined to the building permits report.
US building permits rose by 1.48 million, while housing starts grew by 1.37 million. Both the numbers were higher than the forecasts.
Industrial production was up 1.1% in November, recovering from a 0.9% slump in the month before.
Euro Trades Mixed on Trade Balance Figures
The euro was trading flat amid a quiet day. Economic data was limited to the trade balance figures for October.
Official data showed that the euro area posted a surplus of 28 billion euro. On a seasonally adjusted basis, the trade balance was 24.5 billion, marking an increase from 18.7 billion in September.
EURUSD to Consolidate in the Short Term
The currency pair is quite likely to remain range-bound within the current levels of 1.1177 and 1.1131. Unless there is a breakout from this level we do not expect to see prices heading anywhere.
The bias remains mixed especially considering the holiday week coming up.
Sterling Slips on Hard-Brexit Concerns
The pound sterling was down by over one and half percent on Tuesday. The declines came on concerns on a hard-Brexit. PM Johnson said that the post-Brexit standstill period would remain until end of next year.
This means that the UK will leave the EU regardless of a Brexit deal by end of next year. Johnson is expected to table the bill in the UK parliament this week.
GBPUSD on Track to Test the Support
The currency pair’s current declines will likely see a drop to the lower support area at 1.3100. This would push the pair back to the pre-election lows, just before it surged.
The price level at 1.3226 will be key in the short term. If this level acts as resistance, then we anticipate further declines.
Gold Holds Steady Amid Lack of Fundamentals
The precious metal was trading mixed on Tuesday. A lack of any major fundamentals over the day saw prices in check. Investors await for key central bank meetings later this week, which includes the Bank of Japan and the Bank of England.
XAUUSD Maintains Consolidation
XAUUSD continues to trade flat within the 1483 and 1462 levels. There is the potential that prices are forming a base currently. However, gold needs to break out from this range to ascertain its direction. The bias remains to the upside as long as the minor rising trend line holds.