At Commerzbank talk about conditions for euro back to 1.10 dollars

In light of yesterday's movement of the euro, EUR/USD can attempt to test 1.0816, warn from Commerzbank. According to analysts, the pair showed interesting price movements yesterday, as on the market there was a slight breakthrough of lowest since November 2015 level - 1.0523, which clearly showed an unwillingness of the pair to break the level of March 2015 - 1.0457, which break could open the way for parity.
The level at 1.0700/02 was broken and now it should act as support. Break up opens the way to 1.0816. Then there are resistances at 1.0821 and 1.0851, analysts say.
Their bearish forecast remains valid as long as the trading is below these levels. A breakout will lead to the initiation of recovery to 1.0910 and 1.1000.

UOB forecast range for USD/JPY

According to currency strategists at UOB Group the forecast for USD/JPY remains bullish and suggests a period of consolidation before further growth. They say that the fluctuations of the US dollar yesterday made a mixed outlook. Further, it is expected fluctuations to be in the range of 112.84/114.77.
The bank already have closed their long positions in the pair and have a neutral opinion about it today, they do not expect any change in the opinion of analysts. The pair is currently moving around in its early stage of the consolidation phase, as it will probably go to a very wide range of 111.50/115.00, analysts say.

The Australian dollar fell because of the GDP data

The Australian dollar fell on Wednesday during the Asian trading session, as Australian GDP shrank in the third quarter.
AUD/USD was trading at 0.7431, down by 0.40%, and the USD/JPY rose by 0.12% to 114.16.
The US Dollar Index, showing the strength of the dollar against the six major currencies, was up by 0.01% to 101.52.
In Australia the day is rich in fresh indicators. Thus, the index of activity in the construction sector from AIG rose from 45.9 in November to 46.6, and in the third quarter GDP fell qoq by 0.5% and grew year on year basis, while it was expected to grow by 0.3% and 2.5% respectively.
Reduction of GDP, the highest since 2008, is one of the biggest deviations from the forecasts of the Reserve Bank of Australia's history. RBA, according to the calculations of economists expect GDP growth somewhere at 0.5%. Although officials expect that GDP will retrace in the fourth quarter, the lowest rate will attract the attention of traders to the report on the state of the labor market and definitely will soften the current neutral position of the central bank.

Canadian dollar falls from highs due to lower oil prices

The Canadian dollar fell against its US counterpart on Tuesday, as oil rally ended as a result of profit taking by investors, as the market focused on the meeting of the Bank of Canada this week.
Pair USD/CAD rose by 0.30% to 1.3310. On Monday, the pair reached 1.3235, the lowest level since 21 October.
Oil prices fell on Tuesday to 16-month highs after data showed that the OPEC oil production reached in November another record high.
OPEC last week managed to sign an agreement on the limitation of production, which can reduce the excess of reserves of the world, which was followed by a sharp jump in oil prices, the main part of Canada's exports.
The increase in production before the coming into force in January an agreement to reduce production caused concern that the global excess of reserves can continue in 2017.

The attractiveness of the British currency may rise

The dollar took a break again, going to the correction mode after Wednesday's rally. European currencies are trying to recover due to the increased interest in risk appetite following Wednesday's decision of OPEC to reduce production volumes, which triggered a 10% rally of oil prices.
Especially actively adjusted pair GBP/USD, which had reached a 3-week highs near 1.2660. After the breakdown of the upward movement of 1.26 quotes accelerated, and now the pound is trying to strengthen its position on the psychological level. The key growth driver for the British currency were the optimistic statements of the Minister of Brexit, which tried to weaken the market fears of a "hard Brexit". Players were particularly pleased with the comment that Britain can maintain access to the European single market after leaving EU. This is directly beneficial for the sterling as the British currency will return the attractiveness, shattered after the June referendum.
If we compare the EUR and the GBP, the position of pound look at this stage is much more stable. Status of the British economy, in spite of the "divorce" with the EU, so far eliminates the need for additional stimulus, and the negotiations themselves on an output from the block may last for quite a long period. The ECB, from the other hand, may be forced to extend the program of buying assets, especially in light of the increased political risk in the region.
However, the potential for further strengthening of GBP/USD looks limited due to the fundamental strength of the dollar. Today the US will publish key employment report, which is expected to increase jobs in the area of ​​170-180 (in my opinion higher than 200) thousand. If expectations are met, players will resume buying USD in anticipation of Fed rate increase at the next meeting.

New jobs in the private sector in the US rose in November

A research by the company Automatic Data Processing Inc. (ADP) reported an increase of 216 000 jobs created by private businesses in the US in November with average forecasts of financial markets for an increase of about 165 000. At the same time it was announced some downward revision of data for October, according to which private sector of the US economy were revealed 119,000 jobs during a previous assessment of the ADP of 147 000.
Yesterday's stronger than expected data suggest a pretty good rate of improvement in the labor market, even though the US economy is getting closer to achieving the so-called "Full employment", analysts say.
The ADP report is unlikely to lead to a substantial revision of forecasts of financial markets for upcoming on Friday an official report on employment in November, they added.
According to ADP small US companies with employees between 1 and 49 already for the fifth consecutive month are not a major generator of employment in November, as they had opened 37,000 jobs, medium-sized companies, employing between 50 and 499 people, were hired extra 89 000 workers, while large companies, employing more than 500 people have launched 90,000 new jobs.
The service sector added in the eleventh month of this year 228,000 jobs, in the manufacturing sector were cut 10 000 jobs, only within the industrial enterprises were laid off 10,000 workers, while in construction the number of jobs had increased by 2000, shows the latest survey of ADP.
Let me recall, that ADP surveys pretty much show what to expect from NFP on Friday. If their results are close to the real data, we can expect serious rise in dollar after this week's NFP.

European stock indexes rose on Wednesday after oil

European stocks finished the session in the growth on Wednesday. Driver of growth was the rise of shares of energy companies, caused by OPEC agreement for limitation of the production.
The composite index of the largest companies in the region Stoxx Europe 600 rose during trading by 0,3%, to 341.99 points.
The index of 50 largest enterprises of the euro zone Euro Stoxx 50 added 0.43%. The British FTSE 100 stock indicator rose by 0.17%, the French CAC 40 - by 0.59%, the German DAX - by 0.19%.
Prices of Brent crude for delivery in February soared on Wednesday by nearly 9%, to $51.55 for a barrel on news that OPEC agreed to reduce the collective production to 32.5 million barrels a day, starting from January next year.
Countries outside of OPEC will cut output at 600 000 b/d, and 300 000 b/d of them will fall to Russia.
Shares of Total SA (PA:TOTF) rose in price by 2,4%, BP Plc (LON:BP) - by 3,8%, Royal Dutch Shell - by 4%. The capitalization of the smaller European oil and gas company Tullow Oil (LON:TLW) and Saipem SpA increased by 13% and 10%, respectively.
However, the prospect of rising fuel prices led to a decline in prices for securities airline EasyJet Plc and Air France-KLM by more than 2%.
The contract value for most metals is reduced on Wednesday, due to which the capitalization of Anglo American Plc (LON:AAL) and Rio Tinto Group (LON:RIO) has decreased by 1.6% and 2.5%, respectively, at auction in London.
The market value of the German industrial gases producer Linde AG (DE:LING) increased by 1% on the news that its US rival Praxair Inc (NYSE:PX) resumed merger talks that could lead to the creation of a giant with $60 billion market capitalization.
Quotes of pharmaceutical companies Novo Nordink increased by 3.4% thanks to the good results of the clinical trials of its production of insulin.
Meanwhile, the price of securities of Royal Bank of Scotland fell by 1.4%. The bank failed the British Central Bank stress tests.