The EURUSD pair locked in gains on Monday, November 17, rising to 1.1894 during the European trading session. The FX market showed an upbeat reaction to a possible Brexit deal next week, but came under pressure from a record spike in new Covid-19 cases. A number of vaccines have been engineered, but production, distribution and sales are still nowhere in sight. The single currency corrected down to 1.1852, but managed to close the day 0.10% higher at 1.1862.
Today’s macro agenda (GMT+3)
13:00 UK: CPI, retail price index, PPI core output and wholesale price index (October)
13:00 Eurozone: CPI (October)
16:30 Canada: CPI and new home sales (October); US: building permits and housing starts (October)
18:30 US: EIA weekly petroleum status report
Buyers reached the 67-degree line in European trading and then retreated to the trendline at 1.1851. After retracing to lows, the euro has been picking up strength. At the time of writing, the single currency was trading at 1.1876. FX players continue to brush aside the upward spiral in new Covid-19 cases and the escalating death toll. Stateside, gridlock in the election outcome is spawning uncertainty as market players remain in the dark about who the 46th president of the United States will be.
Today’s market outlook appears to be trendless. Key macro releases include UK and US inflation reports. Given bullish sentiment in the GBPUSD and EURUSD pairs, the 1.1894 resistance level could be retested. If the London opening is negative and sentiment takes a hit from the inflation reading, the key pair could drop below the 1.1845 mark. From the technical standpoint, we expect to see EURUSD trending sideways in the 1.1840-1.1895 range.