On Thursday the 14th of November, the euro was up by 0.14% by the end of trading. The euro posted a new weekly low against the US dollar and hit a new high for the day before the close of the US session. A statement by White House Economic Advisor, Larry Kudlow, triggered the sharp growth seen in major currencies. He revealed that the long-anticipated deal with China is nearing completion. The fact is that in recent days, the deal was on the verge of collapse, because China is asking for the cancellation of certain duties, and the United States insists on maintaining them. Neither side has released any specific details, so for now, investors and speculators will have to try to work it out for themselves.
Day’s news (GMT +3):
13:00 Eurozone: Consumer Price Index (MoM) (Oct), Trade Balance s.a. (Sep).
16:30 Canada: Canadian Portfolio Investment in Foreign Securities (Sep),
16:30 USA: NY Empire State Manufacturing Index (Nov), Import Price Index (MoM) (Oct), Retail Sales (MoM) (Oct).
21:00 USA: Baker Hughes US Oil Rig Count.
Yesterday's market expectations were fully met. The EURUSD pair fell to 1.0989 (forecast was 1.0991). In Asia, the maximum price for trades is fixed at 1.1030. Bulls broke through the top line of the downtrend channel. This trend will not unfold quickly, so for starters we are waiting for the price to return to the dotted line in any case. The balance line (1.1011) acts as support. Yesterday’s forecast is shown on the above diagram in grey – the price fall was halted at the dotted line, and a recovery to 1.0965 took place. Now we are watching for what information will be revealed regarding the deal between China and the United States, and how bears will behave before the American session kicks off.
Since bulls have been hooked in at 1.1020, buybacks should all be snapped up (in theory at least). If this does not happen and bears’ activity wanes while the bulls’ increases, then a level of 1.0965 will yet again loom on the horizon.