This may mark something of a top for the currency pair for now, until we get more clarity on monetary policy decisions from the FOMC meeting. US ten-year bond yields are in an uptrend and, while it is still below last week’s spike of 2.91%, there is a degree of bullishness surrounding the greenback. This is partly due to the sell-off in equities over the past few days and investors’ need for a safe haven.
1.3620 is the next support should 1.37 fail, so it’s likely we’ll see a range-bound price action for the next week.
Eurozone employment change was as expected and registered no change on the quarter. US PPI later this afternoon is likely to show a small increase on last month. Wholesale prices are expected to rise 0.1% for November, against the decline of 0.2% seen previously.