Volatility on the currency market on Wednesday was very high. The euro and pound updated new minimums against the USD. The rates were down due to weak UK (construction PMI) and Eurozone (CPI) data. The Swiss franc strengthened against the dollar with participants trying to avoid riskier currencies.
Support for the dollar came from a US labour market report during the American session. The data from Automatic Data Processing Inc. (ADP) showed a November growth in private sector employment of 217,000 as opposed to the 196,000 growth in October (reassessed from 182,000 and forecasted at 190,000). The indicator exceeded market expectations.
The euro/dollar dropped from 1.0636 by 67 degrees to 1.0550. After trades closed in Europe, the rate restored by those very same 67 degrees to 1.0626
Main news of the day (EET):
The euro/dollar was trading around the LB. Today’s ECB meeting is the focal point for traders. The outcome of the meeting is expected to be a further relaxation of monetary policy in the form of lowered rates for deposits and a widening of QE. The US NFP is out on Friday.
Yesterday Yellen announced that there shouldn’t be any dragging out of putting rates up. The market is already trying to get a head of a rate rise by the US Fed on 16th December. If the NFP comes out worse than expected by 20-30k, we could see all currencies strengthen against the dollar at the end of the week.
The current rate of the euro is 1.0593. My forecast is for up to 14:45 EET. I don’t see any point in guessing what will be the outcome of the ECB meeting and what Draghi will say at his press conference. I said yesterday that it’s better to stay off the market until Monday so as not to get caught up in swings in both directions whilst there’s fundamental news coming out.
Despite the inversion upwards of the stochastic and CCI, the euro/dollar has updated its minimum before the ECB meeting. There’s a support at 1.0550. Now take a look at the daily graph. A hammer has formed. It’s an inverted candle, but there’s no point relying on it for now. Draghi could break up any strong technical and graph signals with his words. Now to the Weekly.
Make Yourself at Home on the Forex Market
Alpari Cashback: decide for yourself, what trading terms on the Forex market will work for you! Trade, invest, top up your accounts at Alpari and get bonus points to further enhance your trading and investment terms.Register
Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.
We're sorry, an error has occurred. Please try again later.
Notification of this error has been sent to our technical support team.
To be redirected to the European Alpari website, operated by Alpari Europe Ltd.,
a company registered in Malta and regulated by MFSA, click Continue. To remain on this page, click Cancel.
Попробуйте опубликовать пост еще раз либо свяжитесь со службой поддержки социальной сети «ВКонтакте».
У вас есть 24 часа, чтобы получить 50 бонусных баллов за свой репост! Эти баллы вы сможете использовать для улучшения торговых и инвестиционных условий в Альпари, а также уменьшения комиссий за денежные переводы.
Просто авторизуйтесь в своем Личном кабинете или зарегистрируйтесь,
если у вас его еще нет.
Обратите внимание, что для получения баллов нужно разрешить доступ к своей странице ВКонтакте сайту alpari.com/ru/.
Для этого на странице «Мои настройки» во вкладке «Приватность» в разделе «Прочее» вашего аккаунта ВКонтакте в пункте «Кому в интернете видна моя страница» выберите «Всем».
Field filled incorrectly.
This field is required.
This field is required.
Incorrect login or password.