USD
The dollar weakened further last Friday due to the soft economic data. Nov ISM index fell from 49.5 to 51.2. Besides, Oct Construction spending fell 1%, below Sept's -0.8%. The US housing market was cooling, and the economic performance was slowing. The market believed that the US Fed would be likely to cut rate next year Q1. According to the CBOT fed fund futures, traders priced in around 70% chance for the rate cut at March 2007. I expected that the dollar will maintain the weakness and investors should prevent to buy the dollar.

EUR
EUR/USD rose up again this morning and hit 1.3368. Last Friday EU did not have important economic data released. Because of the better economic and interest rate outlook, funds are buying European currencies. EUR/CAD rose to 1.5270, EUR/JPY rose to 154, and EUR/NZD also rose to 1.94 level which supported the Euro. I expect that ECB would raise rate this Thursday and after the rate decision Euro will have a short term retracement. Technically, EUR/USD short term support is at 1.3280 and 1.3220 and resistance is at 1.3480.

YEN
Yen weakened last Friday but USD/JPY fell to 115.20 level. Last Friday the Oct Core CPI only rose 0.1% at the annual rate. In these few months Japan core inflation continues to moderate from 0.5% to 0.1%. I believe that the BoJ would not raise rate this month and the market still confuses about the rate hike schedule. EUR/JPY rose to 154, and GBP/JPY rose to 228.60 which was bearish to the Yen. Technically, USD/JPY resistance is at 115.50 and 116.50, and the support is at 113.50.

CAD
The Cad is the weakest among other major currencies. Last Friday USD/CAD rose to 1.1467 level. Nov unemployment rate rose slightly to 6.3% but the employment number increased 24k which limited the downside for the Cad. I expect that the BoE will maintain the interest rate unchanged at this week's policy meeting. The market begins to expect that the BoC would be likely to cut the rate next year which was bearish to the Cad. EUR/CAD rose to 1.5270, and GBP/CAD also rose to 2.26 which weakened the Cad in the medium term. USD/CAD support is at 1.1420 and resistance is at 1.1550.