The state of the Asian market: the euro is under pressure

Trades on Monday opened with a restrained decline in the stock indices of the Asia-Pacific region due to the weak statistics on Japan’s exports. But, despite this, the Japanese yen managed to consolidate against the majority of world currencies, especially European ones. The decline in demand for the euro was caused by the data that the German democrats decided to withdraw from the negotiations on the formation of the coalition. As a result, political fears over the euro area have become noticeably aggravated due to the possibility of new parliamentary elections in Germany.

Also, at the beginning of the day, the US dollar appreciably strengthened against its main competitors, mainly due to the decline in the euro, and returned to a significant resistance of 93.900. Given the negative dynamics of stock indices and the decline in gold prices before Thanksgiving this week, the dynamics of the US currency will remain limited to the existing trading channel and support and resistance levels.

Recommended for reading: Analysis of the past day and Analysis of the last week.

Hanzenko Anton