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Friday, December 1st
The EUR/USD pair extends its upside trend for the third session in a row, keeping its positions above the level of 1.19 at the last working day of the week. Yesterday the greenback came under fresh selling pressure after the Senate delayed a vote on the highly anticipated US tax cut legislation, which, in turn, had a positive effect on the major currency pair. Moreover, seems that the retreat of the euro in the cross with the pound, caused by optimism surrounding Brexit, eased somewhat that also remains positive factor for the shared currency. Looking ahead, today the US will publish ISM manufacturing PMI report, which will likely hog the limelight during the NA session, while any price actions of the US dollar will remain as the key determinant for the pair during this trading session.
The GBP/USD pair consolidates its positions within striking distance of its 2-month highs, marked earlier today in the region of 1.3550. The pound continues to benefit from market’s expectations of positive outcome of Brexit negotiations. However, recent upside rally of the pair appeared limited in Asian session mostly in absence of any fresh positive news regarding Brexit negotiation. Moreover, broad weakness of the US dollar, which was caused by concerns over the US tax bill, also supports the pair at the end of this week. Now all traders’ attention remains focused on the UK manufacturing PMI for fresh directional impetus, while the US ISM manufacturing PMI report will also be able to bring some trading opportunities during the NA session.
The AUD/USD pair extends its bearish trend at the end of this week, showing negative dynamics for six consecutive days. Currently the pair is consolidating its positions within tight range of 0.7550-70, failing to benefit from subdued price actions of the US dollar. The main reason of pair’s weakness remains China's Nov Caixin manufacturing PMI data, which came below market’s expectations, lending some negative pressure on the Aussie. However, further retreat of the pair may appear limited, as softer sentiments surrounding the greenback and slightly increased interest amid investors for higher-yielding assets provide some support to the pair. Today the US data calendar will bring us a slew of data releases, featuring ISM Manufacturing PMI report and several secondary tier data releases, while any sharp moves of the US dollar across the market will also be able to influence the pair in the session ahead.
The USD/JPY pair keeps positive traction for the fourth straight session, having refreshed its more than one-week highs at 112.69 spot. The pair remained mostly resilient to broad retreat of the greenback, caused by a delay in voting by the Senate on the highly anticipated US tax reforms. Pair’s recent growth could be mainly explained by renewed risk appetite across the market, which is negatively influencing all safe-haven assets, including the yen. Moreover, bloc of mixed Japanese data, published in Asia, also did little to support the Japanese currency. Later during the NA session, the US will release the ISM correction of the US dollar after yesterday’s drawdown will also be able to influence pair’s dynamics.
The main events of the day:
German Manufacturing PMI – 10.55 (GMT +2)
UK Manufacturing PMI – 11.30 (GMT +2)
Canada Employment Change – 15.30 (GMT +2)
Canada GDP – 15.30 (GMT +2)
US ISM Manufacturing PMI – 17.00 (GMT +2)
Support and resistance levels for the major currency pairs:
EURUSD S. 1.1758 R. 1.2004
USDJPY S. 111.40 R. 113.20
GBPUSD S. 1.3348 R. 1.3638
USDCHF S. 0.9778 R. 0.9910
AUDUSD S. 0.7534 R. 0.7610
NZDUSD S. 0.6791 R. 0.6909
USDCAD S. 1.2827 R. 1.2943
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