(pare/closed(GMT +2)/change, %)

EUR/USD $1,0611 +0,27%

GBP/USD $1,2159 -0,41%

USD/CHF Chf1,0108 -0,30%

USD/JPY Y114,70 -0,62%

EUR/JPY Y121,72 -0,33%

GBP/JPY Y139,48 -1,01%

AUD/USD $0,7482 +0,57%

NZD/USD $0,7094 +0,59%

USD/CAD C$1,3143 -0,26%

00:00 U.S. Fed Chairman Janet Yellen Speaks

02:00 China Trade Balance, bln December 44.61 46.5

09:30 United Kingdom MPC Member Saunders Speaks

13:30 U.S. PPI, m/m December 0.4% 0.3%

13:30 U.S. PPI, y/y December 1.3% 1.6%

13:30 U.S. PPI excluding food and energy, m/m December 0.4% 0.1%

13:30 U.S. PPI excluding food and energy, Y/Y December 1.6% 1.5%

13:30 U.S. Retail sales December 0.1% 0.7%

13:30 U.S. Retail Sales YoY December 3.8%

13:30 U.S. Retail sales excluding auto December 0.2% 0.5%

14:30 U.S. FOMC Member Harker Speaks

15:00 U.S. Business inventories November -0.2% 0.5%

15:00 U.S. Reuters/Michigan Consumer Sentiment Index (Preliminary) January 98.2 98.5

EUR/USD 1.0500-1.0511 (EUR 310 M) 1.0525 (EUR 731 M) 1.0750 (EUR 228 M)

GBP/USD 1.2100 (GBP 198 M)

USD/JPY 115.00 (USD 1,200 M) 115.95-116.00 (USD 215 M) 116.10-116.25 (USD 234 M) 117.00 (USD 365 M)

USD/CHF 1.0175 (USD 180 M)

AUD/USD 0.7300-0.7310 (AUD 472 M) 0.7350-0.7355 (AUD 488 M)

USD/CAD 1.3190-1.3200 (USD 281 M)

NZD/USD 0.7000 (NZD 320 M)

The New Housing Price Index (NHPI) rose 0.2% in November compared with the previous month. The advance was largely driven by price increases for new housing in Ontario.

Among the 21 census metropolitan areas (CMAs) surveyed, new housing prices were up in 10, down in 4 and unchanged in 7.

London (+1.3%) and Hamilton (+0.7%) recorded the largest price gains among the CMAs covered by the survey. Builders in both CMAs reported improving market conditions and higher construction costs as reasons for the increases. This was the largest monthly rise in London since March 2010.

Prices also rose in Kitchener-Cambridge-Waterloo (+0.5%), the combined region of Toronto and Oshawa (+0.4%) and Calgary (+0.4%). Builders in Kitchener-Cambridge-Waterloo cited market conditions and higher construction costs as reasons for the gain.

Prices for U.S. imports rose 0.4 percent in December, the U.S. Bureau of Labor Statistics reported today, after a 0.2-percent decline the previous month. The advance in December was primarily driven by higher fuel prices which more than offset lower nonfuel prices. U.S. export prices advanced in December, rising 0.3 percent following a 0.1-percent decrease in November.

In the week ending January 7, the advance figure for seasonally adjusted initial claims was 247,000, an increase of 10,000 from the previous week's revised level. The previous week's level was revised up by 2,000 from 235,000 to 237,000. The 4-week moving average was 256,500, a decrease of 1,750 from the previous week's revised average. The previous week's average was revised up by 1,500 from 256,750 to 258,250. There were no special factors impacting this week's initial claims. This marks 97 consecutive weeks of initial claims below 300,000, the longest streak since 1970.

EUR/USD

Offers 1.0680 1.0700 1.0725-30 1.0750 1.0785 1.0800

Bids 1.0620 1.0600 1.0580 1.0550 1.0520 1.0500 1.0480 1.0450

GBP/USD

Offers 1.2325-30 1.2360 1.2380 1.2400 1.2430 1.2450

Bids 1.2250 1.2230 1.2200 1.2180 1.2165 1.2150 1.2125-30 1.2100

EUR/GBP

Offers 0.8685 0.8700 0.8720 0.8750 0.8780 0.8800

Bids 0.8650 0.8620 0.8600 0.8585 0.8550

EUR/JPY

Offers 121.80 122.00 122.50 122.85 123.00 123.30 123.60 123.85 124.00

Bids 121.20 121.00 120.80 120.50 120.00

USD/JPY

Offers 114.60 114.80 115.00 115.20 115.50 115.80 116.00 116.20-25 116.50

Bids 113.80 113.50 113.20-25 113.00 112.85 112.65 112.50

AUD/USD

Offers 0.7530 0.7550 0.7575 0.7600 0.7620 0.7650-60

Bids 0.7480 0.7450 0.7430 0.7400 0.7380 0.7350-55 0.7330 0.7300

• Fed's Bullard: No Reason to Move Rates `Dramatically'

• Don't Expect to See Much Impact From Trump Agenda in 2017

• Markets are Settling Down a Bit Post-Election

• A Few Policy Makers Opposed Decision to Extend QE

• ECB Officials Worried in December Underlying Inflation Showed No Convincing Upturn

• Extended QE to Provide Support During Year From Possible Political Shocks

"Germany does not qualify for an automatic increase in its contribution to the budget of the European Union after Brexit," - said Finance Minister deputy Jens Spahn in an interview with Handelsblatt.

"If the contribution from the UK will disappear, the EU budget will be reduced - said Jens Spahn -. However, there is no automatic mechanism in which Germany and other net contributors should increase the contribution to the EU budget."

Germany, Europe's largest economy, is already making the largest net contribution to the EU budget each year to more than 15 billion euros.

In November 2016 compared with October 2016, seasonally adjusted industrial production rose by 1.5% in the euro area (EA19) and by 1.6% in the EU28, according to estimates from Eurostat, the statistical office of the European Union.

In October 2016 industrial production rose by 0.1% in the euro area, while it fell by 0.1% in the EU28. In November 2016 compared with November 2015, industrial production increased by 3.2% in the euro area and by 3.1% in the EU28.

"The USD/JPY is losing momentum...

As a first correction risk, we are monitoring any unwinding of speculative USD longs driven by the USD/JPY rally. We think the USD/JPY will likely rise quickly to 115-118 level, and estimate that Japanese real-demand traders can be cautious about buying an expensive USD. It is difficult to claim that support for the USD/JPY at the high-110s of firm.

Second, there is still uncertainty concerning the Trump's policies. If Mr. Trump again emphasizes his public commitments including tax cuts at his first press conference today after the election, this will likely be viewed as USD-bullish. His reference to capping USD appreciation might trigger a correction.

Third, we see a risk that a relatively slow economy before Trump can deliver his policies could stall the USD/JPY. The latest market forecast for US economic growth for 4Q to be released on 27 January is 2.0% YoY, but our economist points out that growth may have slowed to around 1%.

Fourth, although there may not be a crisis right now, we need to bear in mind the presence of risk-off factors other than in the US. Economic, market, and political conditions in China, other EMs and Europe, as well as geopolitical risk including in East Asia, are greater factors for concern than in 2016..

We think the USD/JPY uptrend toward 125 will be maintained, and see a prime opportunity to buy on decline. We have seen there could be a correction to 115-110 zone in the first some months of 2017, but we found support at 115 firmer than expected. We think some market participants could start to unwind remaining USD shorts on buying on decline at about 115".

Copyright © 2017 DB, eFXnews™

• At 10:30 GMT Britain will place 10-year bonds

• At 12:30 GMT the ECB to report on monetary policy meeting

• At 13:30 GMT FOMC member Charles Evans will give a speech

• At 13:30 GMT FOMC members Patrick T. Harker will deliver a speech

• At 13:30 GMT FOMC member Dennis Lockhart will give a speech

• At 18:01 GMT the United States will place 30-year bonds

• At 18:15 GMT FOMC member James Bullard will give a speech

• At 18:45 GMT FOMC member Robert Kaplan will deliver a speech

In December 2016, the Consumer Prices Index (CPI) rose by 0.3% over a month after a stability in the two previous months. Seasonally adjusted, it increased slightly (+0.1%), as in the previous month. Year on year, the CPI accelerated for the second consecutive month (+0.6% after +0.4% in October and +0.5% in November) and have reached its highest increase since May 2014.

The month-on-month increase came from an essentially seasonal rebound in services prices. Energy prices and food prices rose at the same pace as in November. Manufactured product prices were stable after a slight drop in November.

EUR/USD

Resistance levels (open interest**, contracts)

$1.0756 (2264)

$1.0714 (2215)

$1.0681 (446)

Price at time of writing this review: $1.0630

Support levels (open interest**, contracts):

$1.0555 (2056)

$1.0529 (1104)

$1.0494 (1151)

Comments:

- Overall open interest on the CALL options with the expiration date March, 13 is 52458 contracts, with the maximum number of contracts with strike price $1,1500 (3255);

- Overall open interest on the PUT options with the expiration date March, 13 is 62223 contracts, with the maximum number of contracts with strike price $1,0000 (5469);

- The ratio of PUT/CALL was 1.19 versus 1.15 from the previous trading day according to data from January, 11

GBP/USD

Resistance levels (open interest**, contracts)

$1.2509 (919)

$1.2413 (313)

$1.2317 (421)

Price at time of writing this review: $1.2244

Support levels (open interest**, contracts):

$1.2180 (914)

$1.2085 (444)

$1.1988 (2061)

Comments:

- Overall open interest on the CALL options with the expiration date March, 13 is 16424 contracts, with the maximum number of contracts with strike price $1,2800 (3018);

- Overall open interest on the PUT options with the expiration date March, 13 is 20304 contracts, with the maximum number of contracts with strike price $1,1500 (3212);

- The ratio of PUT/CALL was 1.24 versus 1.25 from the previous trading day according to data from January, 11

* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.

** - Open interest takes into account the total number of option contracts that are open at the moment.

Japan had a current account surplus of 1.415 trillion yen in November, the Ministry of Finance said on Thursday, cited by rttnews - up 28.0 percent on year.

The headline figure was shy of expectations for a surplus of 1.460 trillion yen and down from 1.719 trillion yen in October.

The trade balance showed surplus of 313.4 billion yen - exceeding forecasts for 254.4 billion yen and down from 587.6 billion yen in the previous month.

The ANZ Commodity Price Index rose 0.7% m/m in December, largely due to the continuing comeback story of dairy prices over the second half of 2016. The December rise in the index was the eighth in a row, driving it 19% higher over the course of 2016.

The NZD Commodity Price Index posted a 2.0% m/m lift in December.This was the fifth month-on-month rise in a row and the fourth monthly gain above 2%. The NZD's continued descent against the USD and GBP in December was the key helping hand. The NZD TWI actually rose 0.1% m/m. however, implying little exporter relief elsewhere.

Non-dairy commodity prices were the disappointment, falling 1.9% m/m. Only 3 of the 12 non-dairy commodities in the index rose in December, with falls centred mainly in the meat and fibre group. However, many sectors saw price improvement throughout the course of 2016 (total non-dairy +7% y/y), though NZD moves continued to weigh on local returns in many cases.