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Tuesday, November 15th
Today the dollar is trading broadly weaker as investors have decided to take the profit off the table after massive post-election rally. However, dollar’s weakness remains capped as dust around election has settled down and rumors of this year Fed’s rate-hike are getting control over the market. Moreover, prospects of additional fiscal stimulus during D.Trump’s presidency are also supporting the US dollar. Today the market is expecting for crucial report of US Retail Sales for another hint of next Fed’s move.
Seems that the euro has regained the smile after six session of consecutive north directed rally. Yesterday the EUR/USD pair refreshed this year lows bottoming the level of 1.07 on the back of dollar’s strength triggered by prospects of further inflation growth under D.Trump’s control. However, the pair was able to break out its consolidative phase this morning despite worse-than-expected preliminary German GDP seen in early Europe on the back of profit taking sentiments on the dollar across the board. Next on tap remain German ZEW Economic Sentiment and bloc of American data that most likely will set up further direction for the pair.
The USD/JPY pair is losing points this Tuesday retreating from yesterday’s five-month highs marked at 108.54 spot. Seems that the US bulls took a breather this morning allowing the pair to step down to 108.00 level as investors are performing profit taking actions. Moreover, expanding risk-off moods are supporting yen’s safe-haven status lately. However, increasing odds of a December Fed’s rate-hike will continue to support US currency limiting any sharp corrective slide for the major.
Limited reaction was seen after release of RBA Meeting Minutes. This morning RBA has released its statement providing the market with no surprises. In its statement RBA has declared that Australian economy keeps its moderate growing pace and there is no need to rearrange inflation forecast. However, situation around housing and labor markets in Australia still remains uncertain, but nevertheless chances that current situation in both will trigger any further policy easing remain quite low.
The main events of the day:
UK Inflation Report Hearings - 12.00 (GMT +2)
German ZEW Economic Sentiment - 12.00 (GMT +2)
US Retail Sales – 15.30 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0632 R. 1.0892
USDJPY S. 106.07 R. 109.71
GBPUSD S. 1.2364 R. 1.2654
USDCHF S. 0.9829 R. 1.0073
AUDUSD S. 0.7506 R. 0.7590
NZDUSD S. 0.7038 R. 0.7178
USDCAD S. 1.3458 R. 1.3638
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