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Tuesday, November 28th
The EUR/USD pair came out of its consolidation phase this morning, having dropped below the level of 1.1900 on the back of attempts of the US dollar to extend yesterday’s recovery trend. However, the spike was short-lived and the pair regained its positions above the level of 1.19, as markets remain cautious ahead of the speech of the next Fed Chair Jerome Powell. Investors await that Mr. Powell’s testimony could shed some light on how he intends to run the central bank. On the other side, positive comments regarding possible compromise in German politics help the common currency to keep its upbeat tone, which in turn positively affects the pair. Besides Mr.Powell’s testimony, investors will pay attention to the US CB consumer confidence for fresh trading opportunities during the NA session.
The GBP/USD pair keeps a positive tone on Tuesday, as the US dollar eased pressure on its main competitors. Seems that the market mainly ignored BoE Governor M.Carney’s speech, where he was speaking on potential risks to financial stability associated with Brexit. However, further upside looks limited, as US dollar is still positive and its further attempts to recover positions will negatively affect the pair. Adding to this, renewed concerns surrounding Brexit negotiations, triggered by lack of clarity on the Irish border issue also provide some negative pressure on GBP at the first half of this week. Nothing else is scheduled in the UK data calendar, so the speech of the next Fed Chief J.Powell and the CB’s consumer confident report should grab all the attention later in the NA session.
The NZD/USD pair was top gainer of this Asia, despite US dollar attempts to recovery its positive tone, which was seen during last NA session. Today the pair once again refreshed its 2-week highs at 0.6945 spot, as risk-on sentiments returned to the market. However, further upside of the pair could be limited on the back of attempts of the US dollar to correct its positions after last week events. Adding to this, yesterday’s hawkish Fedspeaks and higher-than-expected data from the US housing market also provide USD with some support, which is another negative factor for the pair. On the data front, today all traders attention will remain focused to the US CB's consumer confidence data and the Fed Chair Designate Jerome Powell's confirmation hearing before the Senate Committee, which will help traders to grab some short-term opportunities during the NA session.
The AUD/USD pair was trading without clear direction at the start of European trades amid lack of catalysts and stalled US dollar’s recovery. Yesterday the greenback caught fresh bids following comments by Dallas Fed President Robert Kaplan, who reinforced market’s expectations of Fed rate hike by the end of this year, forcing the pair to retreat from its 2-week highs, marked at 0.7644 spot. However, stalled recovery of the US dollar and renewed risk appetite allowed the pair to consolidate its positions in the region of 0.7600-20 during the Asia. Today the US economic calendar contains CB’s consumer confident data and Fed Chair Designate Jerome Powell's testimony before the Senate Committee, which will help the pair to form its further short-term trend during the NA session.
The main events of the day:
FOMC Member J.Powell’s Speech – 16.45 (GMT +2)
US CB Consumer Confidence – 17.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.1852 R. 1.1984
USDJPY S. 110.36 R. 112.04
GBPUSD S. 1.3263 R. 1.3409
USDCHF S. 0.9760 R. 0.9848
AUDUSD S. 0.7562 R. 0.7664
NZDUSD S. 0.6822 R. 0.6970
USDCAD S. 1.2648 R. 1.2830
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