USD Graphic Rewind: Trichet Ignites Biggest US Dollar Rally Since 2009; Bullish Outside-Week Forming

CABLE – Very Cautiously Bullish Above 1.6617

Supported by positive momentum CABLE was bought to new 17-month highs yesterday. However, these levels were attained in Asia and the European day was dominated by profit taking that reversed all of those overnight gains. Thursday was therefore dominated by the upside rejection but overnight trading has seen a renewal

EURUSD Poised to Test 50-Day SMA as Bullish Trend Remains Intact

The final Euro-zone PMI manufacturing report jumped to 57.1 in December amid expectations of 56.8 to mark the highest level since April 2010. Indeed, the euro lost ground during the overnight trade as trades return to their desks; however, the selloff was short-lived as the euro reversed course at the overnight low of 1.3249.

Will a Better Than Expected Euro-Zone CPI Estimate Keep the Bullish EURUSD Trend Intact?

Euro-Zone consumer prices estimate for the month of December is expected to rise an annualized 2.0 percent after climbing 1.9 percent in November. The reading is of particular importance due to the fact that inflation pressures lead the European Central Bank closer to raising the benchmark interest rate.