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Wednesday, November 16th
The euro continues its streak of defeats against US currency loosing points for eighth session in a raw. The dollar has recovered smile after minor price correction seen yesterday as rising chances of Fed’s hawkish move remain as main support factor for the US dollar. The probability of this year Fed rate-hike has grown up to 90%. Moreover, better risk tone seen last hours also is negatively influencing the EUR/USD pair, sending it to retest key support level of 1.0700 that is the lowest level of this year. Next on tap for the pair remains data bloc from US economy with PPI in the main role.
Despite broadly based US dollar’s strength the GBP/USD pair is still looking in north direction approaching 1.2500 resistance level this morning. The pair gained almost a cent since yesterday’s lows witnessed after excellent US Retail Sales as expanding risk appetite is supporting the pound lately. However, increasing odds of this year Fed rate-hike coupled with uncertainty around “Brexit” and triggering the Article 50 are limiting the pair of any sharp upsurges. All eyes now remain on data reports from UK labor market while US PPI will also grab traders’ attention later in NA session.
Seems that risk-on moods are gathering pace this morning negatively influencing safe-haven currencies such as JPY and CHF. The USD/JPY pair once again has broken through the level of 109 this morning refreshing its multi-month highs on the 109.60 spot. Moreover, Swiss franc is trading near its yesterday’s highs above its key resistance of 1.0000. Today the franc was able to reach the level of 1.0027 which is the highest mark since March 2016.
In wake of Monday’s earthquakes New Zealand’s Bureau of Statistics has announced that economic calendar has been revised and will be published by the end of the week. According to the information posted on its temporary webpage the Statistics NZ website is currently down and office closed. Moreover, today new headlines about another earthquake, witnessed in the same region, have appeared on the network. US, Canada and Australia have already sent their naval vessels to assist NZ. As it was expected the Kiwi is feeling depressed against its American peer due to ongoing situation. Currently the NZD/USD pair is trimming overnight gains and steps down below the level of 0.7100.
The main events of the day:
UK Average Earnings Index +Bonus - 11.30 (GMT +2)
US PPI – 15.30 (GMT +2)
US Crude Oil Inventories – 17.30 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.0647 R. 1.0853
USDJPY S. 107.19 R. 110.33
GBPUSD S. 1.2304 R. 1.2602
USDCHF S. 0.9895 R. 1.0085
AUDUSD S. 0.7480 R. 0.7620
NZDUSD S. 0.7030 R. 0.7178
USDCAD S. 1.3369 R. 1.3593
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