Forex.ee: Daily economic news digest

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Wednesday, October 25th

The EUR/USD pair trades without clear direction on Wednesday, staying within 1.1755-70 narrow range, on the back of increasing cautiousness across the market, as we are heading towards important event, which will be held during the next trading session. The pair remains broadly resilient to positive tone of the greenback today, as investors refrain from placing any important directional bets ahead of the ECB monetary policy meeting. It is widely expected that the Bank will reaffirm the need of accommodative monetary policy, while any comments regarding potential QE program adjustments may appear highly influential for the pair. Looking ahead, today we have a pretty busy trading session, which will bring German business climate data and pack of the US releases that will be able to set up pair’s next near-term trend, while broad cautiousness and the US dollar price changes will also have some impact on the pair during this day.

The AUD/USD pair extends its losing streak for the fourth consecutive day, having refreshed its 3-month lows at 0.7716 spot, amid several bearish factors, which are weighing the pair. The Aussie remains the main outsider of this Asian trading session on the back of weaker-than-expected Australia’s CPI numbers, which forced the pair to lose about 70 pips. These economic results sparked fresh speculations about divergence between monetary policies of the Fed and RBA, which are especially relevant in light of recent dovish remarks of RBA officials. Adding to this, mildly bearish tone on the commodity market and shrinking risk appetite also add some pressure on the AUD/USD pair at the middle of this trading week. On the data front, today the US will release slew of macro data during the NA session, which will bring additional trading opportunities to investors.

The USD/CAD pair shows subdued trading dynamics at the equator of this week, staying in the region of 1.2670-90, ahead of the crucial BoC meeting. It is expected that the Bank will keep its interest level unchanged, while some dovish comments from BoC members won’t be a surprise, taking into account the latest Canadian economic results, including lower-than-expected inflation figures and a weak retail sales report. Adding to this, better tone of the greenback against its main competitors also helps the pair to keep its positions within striking distance of its 2-month tops, marked a day before. Besides the BoC meeting, investors will also keep eyes on the bloc of the US macro data, which will also be able to provide some short-term impetus to the pair during the NA session.

The NZD/USD pair remains highly offered so far this week, having once again refreshed its 5-month lows at 0.6882 earlier this session. The Kiwi continues to suffer from ongoing political uncertainty in the NZ, underpinned by fresh news, saying that new NZ PM J.Ardern intends to appoint leader of NZ First party Winston Peters to the position of the deputy prime minister and foreign minister. The market took this news as dovish, as Mr.Peters is considered as protectionist politician. Moreover, positive tone of the greenback remains one of the key themes across the market that also contributes to pair’s retreat on Wednesday. Today all traders’ attention will remain focused on the pack of US macroeconomic releases, featuring durable goods orders, new home sales data and crude oil stockpiles, which will help the pair to set up its further direction.

The main events of the day:
German Ifo Business Climate – 11.00 (GMT +3)
UK prelim. GDP – 11.30 (GMT +3)
US Core Durable Goods Orders – 15.30 (GMT +3)
US New Home Sales – 17.00 (GMT +3)
BoC Interest Rate Decision – 17.00 (GMT +3)
US Crude Oil Inventories – 17.30 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1714 R. 1.1814
USDJPY S. 112.94 R. 114.50
GBPUSD S. 1.3043 R. 1.3271
USDCHF S. 0.9813 R. 0.9959
AUDUSD S. 0.7736 R. 0.7844
NZDUSD S. 0.6814 R. 0.7048
USDCAD S. 1.2591 R. 1.2733

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Friday, October 27th

The EUR/USD pair came under enormously high bearish pressure during last session, having declined to the level of 1.1624, which was last seen in late July, after ECB President M.Draghi announced dovish QE program taper. The ECB reduced QE size by half and simultaneously extended its duration, thus maintaining the same level of stimulus as before and also showing that the Bank intends to retain highly accommodative monetary policy in the near future. In reference to that, Mr. Draghi also added that QE would not stop suddenly, leaving doors opened for further extension of the QE program. This outcome of the ECB meeting highly disappointed the market, forcing the pair to lose nearly 2 cents since yesterday’s highs. Adding to this, the greenback received bullish impetus, increasing its positions across the market, after the House of Representatives passed a budget bill that cleared the way for long-awaited D.Trump tax cuts. Today both data calendars will remain broadly silent, widespread market trend will remain the key driving factor for the pair, as investors are still digesting recent events.

The AUD/USD pair remains the biggest loser of the Asian trading session, extending its downward trajectory into a sixth day today, on the back of increased demand for the US dollar and Australian political drama. Renewed bid tone of the greenback remains the key theme across the FX board, as US President D.Trump’s much-awaited tax reform became one step closer to the final implementation, after the House of Representatives passed the budget blueprint on Thursday. Adding to this, today it became known that the High Court of Australia ruled that Deputy PM Barnaby Joyce has no right to remain in parliament, since he is also a resident of New Zealand. And finally, red numbers of Australian PPI added some extra bearish pressure to the already weak AUD/USD, contributing to pair’s slide to its 3-month lows, marked at 0.7626 level. Looking ahead, today the US economic calendar won’t provide us with any important data releases, so the pair will continue to trace market trend to determine its further direction.

The USD/CAD pair extends its bullish run for the seventh consecutive session, refreshing its 3-month highs at 1.2884 spot, as Loonie is still suffering from the outcome of the BoC meeting. Recall, on Wednesday the Canadian regulator decided to maintain “wait and see” approach to monetary policy, thus having triggered spike of speculations about divergence between monetary policies of the Fed and BoC. Moreover, renewed optimism around the US dollar, triggered by progress over the US President Donald Trump’s tax cut plans, also collaborates with pair’s growth at the end of this working week. On the other side, positive dynamics of oil prices may provide some support to the commodity-linked Loonie, thus stalling pair’s northward rally. Today economic calendars from both neighbouring countries will remain silent, leaving the pair at the mercy of broad market trend and the US dollar price dynamics on Friday.

The GBP/USD pair extends its retreat, having broken through its resistance, located at 1.3100 level, amid renewed optimism around the US dollar. Seems that UK bulls have lost control over the pair, allowing it to lose all its weekly gains, as the US dollar recovered its positive tone across the market. The main reason of increased buying interest around the US dollar remains recent progress over the US President Donald Trump’s tax overhaul plans. Moreover, the pound continues to lose points across the market amid uncertainty over Brexit negotiations, since no progress has been made so far on key Brexit topics. Today both economic calendars lack any market-moving catalysts, so the US dollar price dynamics and widespread market sentiments will continue to navigate the pair during this trading session.

The main events of the day:
Prelim. US GDP – 15.30 (GMT +3)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1512 R. 1.1906
USDJPY S. 113.05 R. 114.53
GBPUSD S. 1.3061 R. 1.3329
USDCHF S. 0.9841 R. 1.0047
AUDUSD S. 0.7615 R. 0.7741
NZDUSD S. 0.6790 R. 0.6930
USDCAD S. 1.2744 R. 1.2908

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Thursday, November 16th

The EUR/USD pair remains within its narrow trading range of 1.1780-1.1800, as investors are expecting crucial inflation data from the Eurozone. Seems that the pair is consolidating positions after minor retreat from its monthly highs, marked yesterday in the vicinity of 1.1860, amid renewed risk appetite and expectations of fresh developments regarding the US tax reform. Today, the tax reform plan will be submitted for a vote in the House of Representatives. Leaders of the Republican Party have already expressed their support for the tax bill, which makes possible the implementation of much-awaited tax reforms by the end of this year. Besides the EU numbers and the tax vote, today we have a package of reports from the US economy, featuring Philly Fed manufacturing index and slew of secondary releases, which will help the pair to from its trajectory during the NA session.

The AUD/USD pair remains highly offered so far this week, additionally weighed today by weak Australian job figures. Earlier today, the Aussie failed to extend its correction from its 4-month lows in the pair with its US counterpart, backed by risk-on sentiments on the FX area, and came under renewed selling pressure after Australia published disappointing employment change numbers. Adding to this, today the pair is also suffering from positive moods of the greenback, which are boosted by speculations regarding upcoming US tax reform developments. Today the US economic calendar won’t bring a lot of relevant releases, so the pair will continue to follow broad market trend, while investors’ interest in higher-yielding assets may appear supportive to AUD.

The GBP/USD pair failed to retake its key resistance level of 1.32, and retreated back to the area of 1.3150 amid better sentiments surrounding the US dollar on Thursday. Increased demand for the US dollar remains key determinant across the market in the second half of this week, as markets expect that the US tax bill will pass the vote in the House of Representatives and much-awaited reforms will be implemented by the end of this year. On the other side, latest comments from one of the EU negotiators Guy Verhofstadt, who expects that Brexit talks wouldn’t fail, keep investors confident that both sides will reach a compromise in the negotiations, which in turn appears positive factor for GBP. Looking ahead, now all eyes remain glued to crucial data releases from the UK economy, while upcoming Philly Fed manufacturing index and BoE Governor M.Carney’s speech will keep investors busy during the NA session.

The NZD/USD pair remains one of the weakest assets across the market of this Thursday, having retreated to the area of its multi-week lows, marked earlier this week in the region of 0.6850. The Kiwi prolongs its bearish march for the sixth session in a row, as divergence between monetary policies of the Fed and RBNZ remains key navigator for NZD/USD. Expectations of December Fed rate hike, coupled with uncertainty on the political field of the NZ and downbeat NZ fundamentals, are exerting negative pressure on the pair lately. Moreover, increased demand for the US dollar on the back of hopes that the US tax reform plan will pass the vote in the House of Representatives later today also adds some pressure on the pair today. On the data front, today we have only Philly Fed manufacturing index, which will help the pair to determine its further trajectory, so NZD/USD will continue to keep following broad market trend during this trading session.

The main events of the day:
UK Retail Sales – 11.30 (GMT +2)
EU CPI – 12.00 (GMT +2)
Philadelphia Fed Manufacturing Index – 15.30 (GMT +2)
BoE Governor M.Carney’s Speech – 16.00 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1735 R. 1.1887
USDJPY S. 111.92 R. 113.96
GBPUSD S. 1.3086 R. 1.3256
USDCHF S. 0.9816 R. 0.9946
AUDUSD S. 0.7539 R. 0.7657
NZDUSD S. 0.6828 R. 0.6942
USDCAD S. 1.2679 R. 1.2831

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Friday, November 17th

The EUR/USD pair failed to sustain its overnight gains and slipped below the level of 1.1800 on the back some minor attempts of the US dollar to correct positions against its main competitors. However, strong sell-off of the US dollar is still navigating the market, so slight retreat of the pair may appear temporary. Broad weakness of the US dollar is mainly attributed to the latest headlines, saying that special counsel Robert Mueller requested President D.Trump’s campaign documents in terms of ongoing investigation of possible US President’s connection with Russia. As for the tax reform, Republicans in the House of Representatives yesterday approved the tax bill, and now it goes to the Senate for consideration. However, the market barely reacted on this positive news, as it was broadly expected and traders have managed to price in this outcome. Now all eyes remain glued to the ECB President M.Draghi’s speech due later in Europe, while the US housing data will also draw some attention in the NA session.

The GBP/USD pair remains top gainer of this trading session, extending its southward rally above the level of 1.3200. Pair’s upward rally is mostly related to broad US dollar weakness, provoked by renewed US political jitters surrounding Russia’s involvement in D.Trump’s election campaign. Adding to this, yesterday’s stronger-than-expected UK retail sales numbers and hawkish comments of the BoE Governor M.Carney, who sees several rate hikes over the next few years if Britain’s economy will keep its growth pace, also contributed to pair’s growth. In absence of any market-moving event from the UK economy, the US dollar dynamics will remain key navigator for the pair, while the US building permits will be able to bring some short-term impetus to the pair during the NA session.

The NZD/USD pair experienced pretty volatile session, however, having returned to the region of its 2-week lows. Earlier, the market reacted aggressively on news, which indicate US President D.Trump’s possible connection with Russia, thereby allowing the pair to correct higher to the 0.6880 area. However, the spike was short-lived and the pair retreated towards its 2-week lows, located in the vicinity of 0.6830, as markets were scared by fresh headlines about new threat from N.Korea, heavily weighing all higher-yielding assets, including the Kiwi. Looking ahead, today we are expecting the US to publish slew of important data from the housing market, while broad weakness of the greenback and risk aversions will continue to influence the pair on the final trading day of the week.

The USD/JPY pair remains under total bearish control, having refreshed its monthly lows at 112.39 spot in Asia. Today broad US dollar weakness is the main underlining theme across the market. The main reason of the US dollar retreat remains ongoing political drama related to possible President Trump’s possible connection with Russia during his election campaign. Adding to this, strong wave of risk aversions also added some negative pressure on the pair this morning on the back of fresh headlines, citing that North Korea is aggressively working on a ballistic missile submarine. In the day ahead, the US economy will publish data from housing market, while the pair will continue to gain sentiments from broadly weakened US dollar.

The main events of the day:
ECB President M.Draghi’s Speech – 10.30 (GMT +2)
US Building Permits – 15.30 (GMT +2)
Canada Core CPI – 15.30 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1730 R. 1.1818
USDJPY S. 112.44 R. 113.62
GBPUSD S. 1.3105 R. 1.3251
USDCHF S. 0.9855 R. 0.9989
AUDUSD S. 0.7540 R. 0.7632
NZDUSD S. 0.6812 R. 0.6894
USDCAD S. 1.2700 R. 1.2810

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Tuesday, November 21st

The EUR/USD pair consolidates its positions today, within its tight range of 1.1730-50, however, being weighed by developments on the political field of Germany. The Euro continues to receive negative pressure from latest headlines, saying that A.Merkel’s CDU/CSU party failed coalition talks, and now is preparing for re-elections. On the other side, risk negative environment supports the euro as funding currency on the back of ongoing political conflict between the US and N.Korea. Looking ahead, today we have quite light data calendar, with only US existing home sales lined up for release, so any further German political developments and US dollar price dynamics will remain key navigators for the pair during this trading session.

The GBP/USD pair extends its bullish rally, remaining positive for the sixth consecutive session. The pound continues to keep its positions in the area of 3-week highs in the pair with its US peer amid yesterday’s developments regarding Brexit negotiations. On Monday, UK PM T.May finally got Cabinet support and now the UK is ready to double its EU divorce bill offer. On the other side, renewed risk-off trend, triggered by latest comments of the US President D.Trump, calling N.Korea as a state sponsor of terrorism, may limit pair’s further upside. Now all eyes remain glued to the BoE inflation report hearings, which could provide the market with detailed information regarding further BoE’s outlook on inflation. Moreover, the US economy will publish today the existing home sales report, which will grab investors’ attention in the day ahead.

The AUD/USD pair extends its downside trend for the fifth session in a row on the back of dovish RBA minutes. Earlier today, the RBA published its protocols from the last meeting, which didn’t provide any surprise to the market. RBA members showed concerns about consumption growth and wage pressures that accelerated bearish dynamics of the Aussie. Moreover, Bank’s authorities once again stressed the risks associated with higher positions of the Australian dollar. On the other hand, subdue dynamics of the US dollar, seen this morning, could bring some relief to the pair in the session ahead. Now all investors’ attention shifts towards the speech of the RBA Governor Philip Lowe, who might lend additional short-term impetus the pair, while data from the US housing market will keep traders busy during the NA session.

Amazing, Bitcoin continues to surprise markets, having once again refreshed its all-time highs in the pair with its US counterpart at 8300.30 spot. The BTC/USD pair showed quite volatile dynamics for the last month, dropping below the level of 5500 in the first half of this month and then rising to the area of 8000. Recall, recent drawdown of Bitcoin is mostly related to the cancelation of SegWit2x due to lack of community support. However, seems that markets have passed over this news and the cryptocurrency has returned to the trend. By the moment of writing, the BTC/USD pair was trading at 8150.00 level, having slightly corrected lower from its record-breaking highs, while Bitcoin total capitalization was 134 billion US dollar, according to the data, available at coinmarketcap.com.

The main events of the day:
UK Inflation Report Hearings – 12.00 (GMT +2)
US Existing Home Sales – 17.00 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1666 R. 1.1840
USDJPY S. 111.57 R. 113.23
GBPUSD S. 1.3139 R. 1.3325
USDCHF S. 0.9857 R. 0.9975
AUDUSD S. 0.7525 R. 0.7585
NZDUSD S. 0.6768 R. 0.6860
USDCAD S. 1.2732 R. 1.2864

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Wednesday, November 22nd

The EUR/USD pair extends its recovery trend, as broad retreat of the US dollar remains key driving theme across the market on Wednesday. The main reason of greenback’s weakness remains yesterday’s cautious speech of the Fed Chief J.Yellen, where she noted that the US inflation continues to demonstrate surprisingly low growth pace. Moreover, seems that markets have already passed over recent German political developments, which is another positive factor for the pair. Today the EU data calendar won’t bring us anything important, so the US dollar price dynamics will remain the key determinant for the pair, while important fundamentals from the US and FOMC minutes will grab investors’ attention during the NA session.

The GBP/USD pair remains better bid on Wednesday on the back of broad weakness of the US dollar across the market. Yesterday, the greenback turned negative after the Fed Chair J.Yellen raised doubts over weak US inflation. Moreover, positive news headlines, saying that the EU and UK intend to reach the Brexit deal within 3 weeks, also help the pair to keep its bullish tone today. However, further upside of the pair may appear limited, as investors remain cautious ahead of important events due later today. Now all eyes remain glued to the UK’s Autumn Forecast Statement, which expectedly will be able to bring some impact to the GBP during European trades, while the US durable goods data and FOMC minutes will keep investors busy during the NA session.

The AUD/USD pair eased part of its yesterday’s gains in Asia, however, maintaining positive tone in early Europe. On Tuesday, the pair received notable bullish impetus, following hawkish remarks of the RBA Governor Phillip Lowe. The head of the bank noted that the next move of the RBA in relation to its interest rate might be hawkish if Australian economy continues to improve as expected. However, further upside appeared limited, as ongoing risk-off trend is still weighing on higher-yielding assets, such as the Aussie. On the other hand, weaker sentiments around the US dollar, sparked by cautious comments from the Fed Chair J.Yellen on the inflation outlook, will continue to support the pair in the middle of this week. On the data front, today the US data calendar contains the US durable goods data and FOMC minutes, which will bring fresh trading opportunities during the NA session.

The USD/JPY pair remains highly offered in the middle of the week, keeping its position within striking distance of its monthly lows, touched on Monday near the level of 112. The main reason of pair’s retreat remains broad weakness of the US dollar, as the market is still digesting yesterday’s dovish comments of the Fed Chairwoman J.Yellen on the inflation outlook. Moreover, the yen continues to benefit from persisting risk-off sentiments, which eventually is also adding some negative pressure on the pair lately. Attention now turns towards the US durable goods data and FOMC minutes release for fresh impetus on the USD, which in turn will affect the pair.

The main events of the day:
UK Autumn Budget – 14.30 (GMT +2)
US Core Durable Goods Orders – 15.30 (GMT +2)
US Crude Oil Inventories – 17.30 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1691 R. 1.1781
USDJPY S. 111.90 R. 112.96
GBPUSD S. 1.3178 R. 1.3296
USDCHF S. 0.9871 R. 0.9967
AUDUSD S. 0.7508 R. 0.7624
NZDUSD S. 0.6767 R. 0.6871
USDCAD S. 1.2699 R. 1.2875

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Friday, November 24th

The EUR/USD pair consolidates its recent bullish rally in the vicinity of 1.1850 level at the last trading session of the week. The pair remains positive for the fourth session in a row, despite attempts of the US dollar to correct after its significant drawdown, triggered by dovish FOMC minutes on Wednesday. The main reason of pair’s positive mood remains the fact that concern about the political situation in Germany was somewhat eased. On the other side, the market barely reacted on yesterday’s ECB minutes, which showed that ECB members are not yet ready to name the exact end date of the QE program. Now immediate focus shifts toward German Ifo business surveys, which will remain the only important release of this day, so the pair will continue to follow broad market trend to determine its further trajectory.

The GBP/USD pair failed to sustain its positions above the level of 1.33 in Asia, having eased part of its weekly gains. The main reason of pair’s retreat remains attempts of the US dollar to correct positions against its main competitors after disappointing FOMC minutes, seen on Wednesday. Adding to this, prevalent risk-off sentiments exert some pressure on the higher-yielding GBP that is also contributing to pair’s retreat. However, further downside of the pair seems limited amid thin market conditions due to Thanksgiving lull on the US market. Looking ahead, today we have pretty quiet trading session, as only secondary data reports will be released from both sides, so the US dollar price dynamics and broad market trend will remain as key driving factors for the pair at the end of this working week.

The USD/JPY pair finally came out of its consolidation phase and stepped away from the region of its 2-month lows, reached on Wednesday near the level of 111.00. Recall, earlier this week the greenback slumped sharply across the board after dovish FOMC minutes showed concerns of Fed members regarding weaker inflation growth pace. However, seems that US bears took a breather today, allowing the dollar to correct higher after its drawdown, eventually exerting support to USD/JPY. On the other hand, further upside looks capped, as better demand for safety and low trading volumes are lending some negative pressure on the pair. Today in absence of any market-moving events, the US dollar dynamics will remain as an exclusive determinant for the pair throughout this trading session.

The NZD/USD pair came under selling pressure at the last trading session of this week, retreating from its weekly highs, marked near the level of 0.6900 on Thursday, after disappointing data, provided by the NZ economy. In early Asia, the NZ published weaker-than-expected trade balance data, which was the main catalyst for pair’s decline. Adding this, broad US dollar correction against its main peers and prevalent risk aversion also contributes to pair’s retreat lately. In the session ahead, the US economy will publish only secondary data reports, which most likely won’t cause any sharp reaction amid investors, so US dollar price actions will act as an exclusive driver for the pair on the last trading day of the week.

The main events of the day:
United States - The Day After Thanksgiving
German Ifo Business Climate Index – 11.00 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1796 R. 1.1882
USDJPY S. 110.90 R. 111.52
GBPUSD S. 1.3251 R. 1.3363
USDCHF S. 0.9778 R. 0.9844
AUDUSD S. 0.7586 R. 0.7656
NZDUSD S. 0.6847 R. 0.6925
USDCAD S. 1.2652 R. 1.2756

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

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

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Thursday, November 30th

The EUR/USD pair failed to keep positive tone in early Europe and dropped to session lows, marked in the region of 1.1810, despite better-than-expected data reports from German labor market. The main reason of pair’s retreat remains ongoing recovery of the US dollar, which is dominating the market lately. Moreover, seems that markets have already passed over recent positive news from German political field, while sharp drawdown of the euro in the cross with the pound is still weighing the common currency across the boeard. Looking ahead, since the report from the German labor market was the only important data release for today, the broad market sentiments and the US dollar dynamics will remain the key driving factors for the pair during this trading session.

The GBP/USD pair continues to show positive dynamics for the third session in a row, as the pound is still benefiting from the progress, made in Brexit negotiations. Recall, earlier this week the UK PM T.May and EU committee came to a compromise on Brexit deal, however, there haven’t been any official announcements on the Brexit settlement amount yet. Moreover, this news forced the pair to ignore recent negative UK data releases and maintain its positive rally. In the meantime, both economic calendars won’t bring us anything noteworthy, so the noise surrounding Brexit process will continue to drive the pair during this trading session.

The NZD/USD pair remains the weakest asset of Asia on the back of disappointing NZ data. Today the pair received additional bearish impetus, extending its southern rally for the third consecutive session, after New Zealand released negative business confidence numbers, which significantly weighed the Kiwi. Adding to this, ongoing political uncertainty in the NZ remains another bearish factor for the Kiwi, which is driving the pair into the negative territory. On the other hand, the pair managed to stall its retreat following China’s manufacturing sector activity report, which came above market expectations, lending the much-needed respite to NZ bulls. Looking ahead, today the US economic calendar will remain broadly silent, leaving the pair at the mercy of widespread market trend, which will navigate the pair during this session.

The AUD/USD pair broke out of its 4-day losing streak on Thursday on the back of several bullish factors. The pair attracted some buying interest following upbeat Chinese manufacturing and services PMI reports, as China is the biggest Australian business partner. Moreover, better-than-expected data from the Australian housing market also helped the pair to regain its positive tone by the European opening. However, further upside of the pair looks fragile, as softer sentiments on the commodity space, especially surrounding copper, are limiting any additional gains of the commodity-linked Australian dollar. Today the US calendar contains only secondary data reports, which unlikely will attract much attention, so the pair will continue to trace broad market sentiments to determine its further direction during this trading session.

The main events of the day:
German Unemployment Change – 10.55 (GMT +2)
EU prelim. CPI – 12.00 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1782 R. 1.1916
USDJPY S. 111.00 R. 112.60
GBPUSD S. 1.3284 R. 1.3510
USDCHF S. 0.9793 R. 0.9895
AUDUSD S. 0.7521 R. 0.7631
NZDUSD S. 0.6842 R. 0.6948
USDCAD S. 1.2779 R. 1.2915

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

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

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Monday, December 4th

The EUR/USD pair remains under bearish pressure, as optimism around the greenback dominates the market on Monday. Recently the US Senate approved the tax overhaul bill that brings much awaited tax cuts a step closer to their implementation. Moreover, fading uncertainty surrounding US President’s connection with Russia is also offering some support to the greenback. According the latest information, reports about Russia’s involvement in the 2016 presidential election appeared faulty. On the data front, today both economic calendars won’t offer anything interesting, so the pair will keep tracing broad market sentiments and USD price dynamics to determine its further trajectory.

The GBP/USD pair extends its retreat from 2-month highs for the second day in a row, marked near the level of 1.3550, on the back of renewed demand for the US dollar. The greenback appears bid across the market today as the US Senate passed the tax reform bill, making implementation of long awaited tax cuts a step closer to its final goal. However, positive sentiments around Brexit negotiations are still offering support to the pound, limiting pair’s recent retreat, while any further developments in EU-UK talks will remain closely eyed for fresh any impact on the pair. Now all eyes remain glued to the UK Construction PMI, which will be able to provide fresh trading opportunities during the European trading session, while the US data calendar will remain broadly silent, leaving the pair at the mercy of broad market sentiments and the US dollar dynamics.

The NZD/USD pair remains one of the weakest assets of this Asia, moving closer to the region of its weekly lows, marked at 0.6818 spot on Friday. Increased demand for the greenback, backed by US tax reform developments and fading concerns over the US President’s connection with Russia, remains key driving factor across the market, which is lending negative pressure on the pair lately. Moreover, ongoing uncertainty on the political field of the NZ also collaborates with downside trend of the pair. Looking ahead, today we will have pretty quiet data session, as the US economic calendar offers only secondary data reports, which unlikely will attract investors’ attention, so the US dollar price dynamics will continue to navigate the pair throughout this trading session.

Bitcoin continues to set records, having refreshed its all-time highs at 11831.00 vs its US counterpart. Seems that the BTC/USD pair has regained its positive tone after technical correction, seen last week, and now is extending its bullish rally, as interest around the cryptomarket continues to grow. However, further upside rally of Bitcoin may appear capped, as the UK Treasury intends to regulate Bitcoin, concerning about money laundering and tax avoidance. By the moment of writing, Bitcoin’s price was 11460.00 $ and its capitalization increased to the level of 192 billion USD, according to data from coinmarketcap.com.

The main events of the day:
UK Construction PMI – 11.30 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1806 R. 1.1986
USDJPY S. 110.65 R. 113.63
GBPUSD S. 1.3380 R. 1.3592
USDCHF S. 0.9651 R. 0.9921
AUDUSD S. 0.7512 R. 0.7686
NZDUSD S. 0.6774 R. 0.6966
USDCAD S. 1.2526 R. 1.2978

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Wednesday, December 6th

The EUR/USD pair failed to keep its yesterday’s recovery trend and once again came under selling pressure, moving closer to its 2-week lows, marked near the level of 1.1800 a day before. Renewed pair’s weakness is mainly attributed to attempts of the US dollar to recover its positions after yesterday’s drawdown, which was triggered by dovish remarks of Fed member Charles Evans, who offered not to rush on Fed monetary policy tightening. However, fresh wave of risk aversions amid the latest North Korea headlines provided some support to the euro and as a result limited pair’s retreat. Today all traders’ attention will be focused on the US ADP report, which will provide investors with clues on what to expect from the key event of this week – NFP date release.

The GBP/USD pair remains offered for the second day in a row, slipping below the level of 1.3400. In Asia, the pair accelerated its decline amid news reports of an attempt to assassinate the UK PM Theresa May by the Islamist terrorists. Fortunately, the British security services managed to prevent the upcoming assassination attempt on the PM. Moreover, broad risk aversions, backed by renewed political tensions between the US and N.Korea, and ongoing uncertainty around Brexit are also collaborating with pair’s decline lately. On the other hand, broad downside correction of the US dollar, triggered by yesterday’s dovish remarks of Fed member Evans, lent some support for the pair, thus limiting its losses. Looking ahead, today traders’ attention will remain focused on the data from the US labor market, while widespread sentiments, driven by recent Brexit progress, or its absence, will remain the key driving factor for the pair on Wednesday.

The USD/JPY pair remains one of the weakest assets of Asia on the back of several bearish factors, which are navigating the market at the equator of this week. Yesterday the pair came under wave of selling pressure on the back of another US dollar correction across the market, having refreshed its weekly lows in the region of 112.00 mark. Moreover, renewed risk-off sentiment, triggered by recent North Korea headlines, saying that latest US actions are a provocation of a nuclear war, also contributes to pair’s downside trend. Now all traders’ attention shifts towards the US ADP Nonfarm Employment Change numbers for fresh trading opportunities ahead of the key NFP report due out on Friday.

The AUD/USD pair once again was showing volatile dynamics during the Asian trading session, this time in wake of negative Australian data. Earlier today, the pair came under strong selling pressure, having refreshed its 3-day lows, after Australia published disappointing GDP results. Moreover, prevalent risk-off moods, triggered by latest headlines from Korean Peninsula, drives flows away from higher-yielding assets, such as the Aussie, thereby adding some extra pressure on the pair on Wednesday. On the data front, today all eyes remain on the US ADP jobs report, which is considered as a preview of the key report from the US labor market – NFP, which will be released on Friday.

The main events of the day:
US ADP Nonfarm Employment Change – 15.15 (GMT +2)
BoC Interest Rate Decision – 17.00 (GMT +2)
US Crude Oil Inventories – 17.30 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1758 R. 1.1910
USDJPY S. 112.11 R. 113.09
GBPUSD S. 1.3321 R. 1.3537
USDCHF S. 0.9815 R. 0.9915
AUDUSD S. 0.7560 R. 0.7676
NZDUSD S. 0.6821 R. 0.6935
USDCAD S. 1.2583 R. 1.2757

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Friday, December 8th

The EUR/USD pair keeps navigating southwards for the fourth session in a row, remaining within striking distance of its 2-week lows, marked in the area of 1.1740. Increased demand for the US dollar remains one of the key navigators across amid investors’ expectations that long-awaited US tax reforms will be implemented by the end of this year, which, in turn, negatively affects the pair on the last day of this working week. Moreover, strong drawdown of the euro in the cross with the pound on the back of progress in the Brexit negotiations exerts additional correlation pressure on the single currency across the market. On the data front, today all eyes will remain on the data from the US labor market, which will be able to shape up the tone of the US dollar ahead of next week’s Fed meeting.

The GBP/USD pair continues to show positive dynamics in the second half of this week, trading above the level of 1.35 amid the progress made in the Brexit negotiations. As it became known earlier, the European Union and the UK reached a compromise on Brexit settlement bill. Today the UK PM Theresa May and President of the European Commission Jean-Claude Juncker met to sign an agreement, which allows both sides to move on to the next phase of negotiations. Moreover, strong risk-on sentiments were dominating the market in Asia, lending support to higher-yielding assets, such as the pound. Looking ahead, today we are expecting pretty volatile session, as both sides have prepared important data releases, which will help the pair to form its further direction.

The USD/JPY pair remains bullish for the second day in a row, having refreshed its 3-week highs, despite slew of upbeat data from the Japanese economy. Seems that Japanese bulls mostly ignored positive numbers of Japan’s GDP report, allowing the pair to reach the area of 113.50. The main reason of pair’s bullish rally is a pickup in the US Dollar demand, which is dominating the market on Friday. Moreover, prevalent risk-on moods, triggered by positive Chinese trade balance data, is another negative factor for the yen, which is contributing to pair’s upside rally. However, further growth of the pair looks fragile, as all traders’ attention shifts towards the US monthly jobs report, which will hog the limelight during the NA session, as markets believe that it could affect further Fed monetary policy course.

Bitcoin again distinguished himself. The world’s largest cryptocurrency once again surprised the cryptomarket at the end of this week. In Asia, the BTC/USD pair rose to its new ultimate highs, marked at 17147.00. However, it seems that bitcoin bulls appeared exhausted and the pair retreated by $3000 to the area of 14000.00. Further, Bitcoin tried to regain its bullish mood, having risen to the level of 16000 at the beginning of European trading session, but the attempts of the crypto currency were unsuccessful and the pair sank to the level of 15000.00. This Bitcoin’s sharp retreat is mainly attributed to profit taking actions, as digital currency gained more than 70% over the last 7 days. By the moment of writing, the price of Bitcoin was $15382.00, and its market capitalization remained at $265 billion, according to data from coinmarketcap.com.

The main events of the day:
UK Manufacturing Production – 11.30 (GMT +2)
US Nonfarm Payrolls – 15.30 (GMT +2)
US Unemployment Rate – 15.30 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1743 R. 1.1829
USDJPY S. 111.87 R. 113.75
GBPUSD S. 1.3261 R. 1.3589
USDCHF S. 0.9842 R. 0.9996
AUDUSD S. 0.7465 R. 0.7593
NZDUSD S. 0.6782 R. 0.6912
USDCAD S. 1.2751 R. 1.2919

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Friday, December 15th

The EUR/USD pair regained its positive tone, moving closer to the level of 1.1800, after moderate retreat, provoked by dovish comments of the ECB President M.Draghi. On Thursday, the ECB left its interest rate unchanged, while revising its forecast for inflation and GDP to the upside. However, the pair failed to gain further positive traction after ECB press conference, where Bank’s President M.Draghi reminded about potential downside risks for inflation in the Eurozone. However, ongoing post-FOMC weakness of the US dollar is still dominating the market, allowing the pair to regain some position at the last working day of this week. Today, in absence of any important data releases, the pair will continue following broad market trend, caused by recent CB’s decisions.

The GBP/USD pair struggles to find direction for the second day in a row, remaining near its weekly highs, marked at 1.3467 spot a day before. Yesterday investors barely reacted on widely expected and uninformative outcome of the BoE meeting. All MPC members voted to leave interest rates unchanged at 0.50% and asset purchase facility at £435 billion. Meanwhile, seems that markets have already digested recent negative Brexit developments, wherein the UK lawmakers voted against PM Theresa May’s Brexit plan, that, in turn, eased bearish pressure on the pair somewhat. Moreover, continuing subdued US dollar dynamics, caused by recent not enough hawkish outcome of the FOMC meeting, also provides support to the pair at the end of this week. On the data front, today we will have relatively silent data session, so broad market trend will remain as a key determinant for the pair this Friday.

The NZD/USD pair remains top gainer of this Asian trading session, having refreshed its nearly 2-month highs above the level of 0.7000. One of the main reasons of pair’s recent positive trend are comments of New Zealand Finance Minister Grant Robertson, who stated that he is comfortable with current exchange rate of NZD. Moreover, another bullish factor, which supports the pair this Friday, remains subdued dynamics of the US dollar, as investors are still digesting outcome of the FOMC meeting. Today the US calendar will bring us only secondary data reports, which will unlikely attract much of investors’ attention, thus the pair will continue to gain traction from broad market trend during this session.

The USD/JPY pair extends its bearish trend for the third consecutive session, mainly driven by broad weakness of the US dollar. Recall, on Wednesday the Fed increased its interest rate by 25 bps, but failed to provide any fresh clues regarding its further monetary policy. The market took this outcome of the Fed meeting as a dovish factor, forcing the US dollar to retreat against its main competitors. Adding to this, ongoing uncertainty over much-awaited US tax reforms also weighs the US dollar, which eventually remains another negative factor for the pair. In addition, Japan released bloc of mixed Tankan data earlier today, which largely failed to bring any impetus to the pair. Looking ahead, today the US data calendar will remain broadly silent, leaving the pair at the mercy of broad market trend at the end of this week.

The main events of the day:
None

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1711 R. 1.1895
USDJPY S. 111.63 R. 113.27
GBPUSD S. 1.3345 R. 1.3505
USDCHF S. 0.9812 R. 0.9942
AUDUSD S. 0.7603 R. 0.7709
NZDUSD S. 0.6948 R. 0.7040
USDCAD S. 1.2639 R. 1.2943

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Monday, December 18th

The EUR/USD pair paused its 2-day retreat and now is navigating towards the level of 1.1800. On Friday, the pair came under strong selling pressure, slipping below the level of 1.1750, on the back of news that the US Senate is expected to pass the vote on tax reforms this Tuesday and President Donald Trump is aiming to sign the bill by week’s end. However, the US dollar was unable to consolidate its positions and corrected lower at the beginning of this week, allowing the pair to recover some pips. Now all investors’ attention remains focused on the EU CPI report, which is the only important data released for today, so the US dollar price dynamics will assume as the main navigator for the pair this Monday.

The GBP/USD pair extends its recovery after a sharp Friday’s decline, caused by positive rally of the US dollar against its main competitors, while rising to the region of 1.3350. At the end of the last week, the US dollar received strong bullish impetus on the back of fresh signs of progress, seen on the US tax-cut legislation. On the other hand, recent comments of the UK PM Theresa May, who said that work on Brexit continues, no matter what, also exert some support to the pound. However, uncertainty over Brexit still grips the market, as UK and EU now have to reach an agreement on trade deal. Today nothing important is scheduled in both data calendars, so the US dollar price dynamics and fresh developments regarding Brexit will continue to determine pair’s further direction.

The AUD/USD pair regained its positive tone at the start of this week, navigating towards its monthly highs, marked at 0.7694 spot on Friday. Today the downward correction of the US dollar after its significant growth, backed by renewed optimism around US tax reform, remains the key driving factor across the market, which, in turn, supports the pair on Monday. Adding to this, positive sentiments on the commodity market, especially around copper prices, and recent upbeat data from the Australian labor market also contributes to pair’s upside trend at the beginning of this week. On the data front, today we expect a rather quiet trading session, as the US calendar won’t bring us anything noteworthy, while the US dollar price dynamics will continue to determine pair’s further direction.

Bitcoin is still in a trend. Seems that Bitcoin bulls do not feel the tired, once again forcing the BTC/USD pair to refresh its all-time highs at 19,850.00 spot this weekend. Recent Bitcoins positive rally is mainly attributed to news that another the US based exchange (CME Group) launched bitcoin futures. However, the pair couldn’t keep its positions near its recent tops and corrected lower to the region of 18,000.00. By the moment of writing, the pair had already managed to recover some pips and was trading at 18,548.00 spot, while market capitalization of the largest crypto currency exceeded the mark of 319 billion USD, according to data, available on coinmarketcap.com.

The main events of the day:
EU CPI – 12.00 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1706 R. 1.1834
USDJPY S. 111.74 R. 113.16
GBPUSD S. 1.3207 R. 1.3501
USDCHF S. 0.9841 R. 0.9963
AUDUSD S. 0.7600 R. 0.7714
NZDUSD S. 0.6942 R. 0.7052
USDCAD S. 1.2679 R. 1.2989

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Friday, December 22nd

The EUR/USD pair remains under pressure at the end of this week as political turmoil between the Spanish and the Catalan governments weighs the common currency. Currently the major currency pair is trading in the region of 1.1850, having recovered some pips. However, euro bulls looks exhausted today, as investors are still digesting Catalan Separatists election victory, which in near future may negatively affect the Spanish political climate. However, post-Catalan vote momentum may appear limited, as now investors await for fresh developments from the Spanish political area. Today the EU data calendar won’t bring us anything noteworthy, while the US will publish a slew of important economic indicators, which will bring fresh trading opportunities during the NA session.

The GBP/USD pair follows broad market trend and consolidates its positions in the region of 1.3370-90 at the beginning of European session. However, there are still few driving factors, which most likely will continue navigating the pair throughout this Friday. First, slightly increased demand for the US dollar is one of the main drivers, which is dominating the market, thus keeping the pair under pressure. On the other hand, notable drawdown of EUR/GBP cross, triggered by the Catalan election outcome, provides some correlational support to pound that is limiting further retreat of GBP/USD. Now all traders’ eyes are remaining glued to UK GDP readings, which will help the pair to form its short-term trajectory during European trades, while important US data will also be able to attract investors’ attention later today.

The USD/CAD pair consolidates its positions in the area of 1.2740 at the end of this week after yesterday’s sharp retreat, caused by positive results of the Canadian economy. On Thursday, the pair lost more than a cent, dropping below the level of 1.27, as Canada’s core retail sales and inflation numbers came above market’s expectations, thus allowing the BoC to continue its monetary policy tightening course. However, the pair managed to correct higher on the back of increased demand for the US dollar, which is the main driving factor across the market this Friday. Looking ahead, today we will have pretty busy session, as both economies have prepared pack of important data, which will be released during the NA session.

Bitcoin gone into free fall. The BTC/USD pair extends its retreat, having refreshed its 2-week lows in the region of 12,000.00, while losing more than 30% from its record highs reached during last weekend at the level of 19,850.00. There were no obvious catalysts behind the current collapse, however, it seems that markets decided to take some profits off the table on the eve of the end of the year. Moreover, aggressive sell-off of the digital currency triggered a temporary stop of trading bitcoin futures on US-based exchanges CME and Cboe that additionally accelerated recent pair’s fall. By the moment of writing, the BTC/USD pair was trading at 12,780 mark, while the market capitalization of the world’s largest cryptocurrency dropped to the level of 229 billion USD, by the data, available at coinmarketcap.com.

Major events of the day:
UK GDP – 11.30 (GMT +2)
US Core Durable Goods Orders – 15.30 (GMT +2)
Canada GDP – 15.30 (GMT +2)
US New Home Sales – 17.00 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1829 R. 1.1911
USDJPY S. 112.94 R. 113.82
GBPUSD S. 1.3311 R. 1.3423
USDCHF S. 0.9822 R. 0.9938
AUDUSD S. 0.7634 R. 0.7740
NZDUSD S. 0.6974 R. 0.7040
USDCAD S. 1.2617 R. 1.2899

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Thursday, December 28th

The EUR/USD pair shows positive dynamics this Thursday, having tested the resistance level of 1.1940 in early Europe. Recent upward move of the pair is mainly due to a fresh bout of aggressive selling of the US dollar, caused by yesterday’s red numbers of CB consumer confidence and closing of greenback bids ahead of the New Year holiday. Adding to this, still positive sentiments around the common currency, backed by recent ECB’s revision of its economic growth forecasts, provide extra support to the pair in the second half of this week. Looking ahead, today nothing noteworthy is scheduled in the data calendar, so broad market trend will remain as a key navigator for the pair during this session, while light trading will continue to persist ahead of the New Year celebration.

The GBP/USD pair remains positive for the third session in a row, having refreshed its 2-week highs in the region of 1.3450. The main reason of pair’s recent bullish rally is mostly related to broad weakness of the US dollar, caused by closing bid positions on the US dollar ahead of the New Year. Moreover, slightly increased appetite for more risky assets also collaborates with pair’s recent upside trend. Today we are expecting pretty calm session, as both data calendars offer only secondary data reports, leaving the pair at the mercy of the US dollar price dynamics, while markets will continue to experience lowered liquidity and thin pre-holiday trades.

The USD/JPY pair came under strong selling pressure during the Asian session, having dropped to its weekly lows, marked at the 112.66 spot, as broad sell-off of the US dollar is still gripping the market. Recent weakness of the US dollar could be explained by closing USD bid orders at the end of this year. Moreover, pack of better-than-expected Japan’s macro indicators provided positive impetus to the yen, thus adding some extra pressure on the pair. On the data front, today the US economic calendar will remain broadly silent, so broad market trend and the US dollar dynamics will remain as key determinants for the pair during this trading session.

Bitcoin failed to keep positive mood. Yesterday the BTC/USD pair once again changed its direction and today fell below the level of 14,000.00 during Asian trades. The latest leg down of the world’s most popular cryptocurrency is mostly attributed to the latest news headlines, saying that South Korean government is planning to conduct an additional review of cryptocurrency exchanges to limit ongoing speculations. Adding to this, recent warnings by financial authorities regarding potential risks of a crypto bubble also exert some pressure on the digital currency. By the moment of writing, the price for Bitcoin was 13,698.00 US dollars, while its market capitalization dropped to 243 billion USD, according to data from coinmarketcap.com.

Major events of the day:
US Crude Oil Inventories – 18.00 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1831 R. 1.1943
USDJPY S. 112.91 R. 113.52
GBPUSD S. 1.3337 R. 1.3463
USDCHF S. 0.9833 R. 0.9923
AUDUSD S. 0.7701 R. 0.7816
NZDUSD S. 0.7009 R. 0.7106
USDCAD S. 1.2583 R. 1.2727

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Wednesday, January 3rd

The EUR/USD pair extends retreat from its highs, which were last seen in September 2017, on the back of pause in sell-off of the US dollar. However, further pair’s retreat may appear limited as market players are awaiting FOMC Minutes for fresh clues on further Fed monetary policy projections. Moreover, persisting weakens of the greenback remains a key driving factor across the market, thus limiting pair’s chances of further sharp downside correction. Besides FOMC meeting minutes, investors today will also pay attention to German unemployment data and US ISM Manufacturing PMI, which will also help the pair to from its further trajectory during this trading session.

The GBP/USD pair seems lost its positive traction at European opening and stepped away from its September 2017 highs, marked at 1.3613 this morning. Recent retreat of the pair is mainly explained by attempts of the US dollar to recover its positions against its main competitors. Adding to this, lack of information about Brexit may also add some bearish pressure to the pound, thus contributing to pair’s recent downside correction. Now all traders attentions shifts towards the UK Construction PMI and US ISM Manufacturing PMI numbers, while the release of the FOMC meeting minutes remains the main event of this Wednesday, as it might contain so some important information regarding Fed monetary policy plans for this year.

The USD/JPY pair regained some positions this Wednesday, however, remaining within striking distance of its 2-week lows, marked in the vicinity of 112.00 a day before. There was now clear catalysts for the latest pair’s dynamics, except ongoing weakness of the US dollar. Moreover, expected that the pair will keep its offered tone in near future, as upcoming Fed minutes and NFP bring some cautiousness among investors, thus supporting safe-haven assets, such as the yen. Today, besides the FOMC meeting minute, investors will also pay attention to the ISM manufacturing PMI data, which will be published during the NA session and will be able to bring some fresh trading opportunities.

Bitcoin recovered some ground at the start of this year. The BTC/USD pair finally climbed back above the level of 15,000.00, gaining about 15% for the last 24 hours. The latest upside rally of crypto assets is mainly attributed to the renewed buying pressure after New Year holiday. Moreover, inflow of investments from large investors also played an important role in shaping the bullish trend of Bitcoin, so, according to the latest news headlines, the fund, managed by one of the co-founders of the PayPal payment system Peter Thiel, invested about 20 million US dollars in Bitcoin. By the moment of writing, the price for the world’s largest cryptocurrency was 15,362.00 US dollars, while its market capitalization was $258 billion, according to data from coinmarketcap.com.

Major events of the day:
German Unemployment Change – 10.55 (GMT +2)
UK Construction PMI – 11.30 (GMT +2)
US ISM Manufacturing PMI – 17.00 (GMT +2)
FOMC Meeting Minutes – 21.00 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1961 R. 1.2129
USDJPY S. 111.63 R. 113.11
GBPUSD S. 1.3462 R. 1.3666
USDCHF S. 0.9671 R. 0.9771
AUDUSD S. 0.7768 R. 0.7874
NZDUSD S. 0.7022 R. 0.7170
USDCAD S. 1.2453 R. 1.2603

Your European ECN-broker,
Forex.ee

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Friday, January 5th

The EUR/USD pair came under bearish presser and lost some pips in early Europe after brief consolidation phase on the back of attempts of the US dollar to recover its positions across the market. Recent dollar’s recovery could be mainly explained by upbeat data from the US labor market, released on Thursday. Adding to this, markets are expecting further downside correction of the major currency pair in wake of profit-taking actions after its recent bullish rally and re-opening buy orders on the US dollar after New Year holidays. On the data front, today we have a pretty busy session, as the economic calendar contains several important releases, such as flash EU inflation numbers and crucial US jobs report, which will set up pair’s further direction this Friday.

The GBP/USD pair failed to keep its positive traction in early Europe, having lost the most part of its intraday gains. Latest pair’s leg down could be explained by attempts of the US dollar to recover positions against its main competitors, as investors are still digesting yesterday’s positive indicators from the US labor market. However, the pound remains better bid on the last working day of this week on the back of increased risk appetite, which dominates the market lately. Moreover, seems that the pound is still benefiting from the upbeat UK services PMI report, which was released a day before. Looking ahead, today all traders’ eyes will remain glued the key US jobs data, which will help the US dollar to form its further trend.

The AUD/USD pair have finally lost its bullish momentum after 12-day winning streak. In Asia, the pair once again refreshed its highs at 0.7869, which were last seen in mid-October. The latest bullish rally of the pair is mainly attributed to broad weakness of the US dollar, which was dominating the market for the last couple of weeks. Adding to this, upbeat risk-on sentiments, boosted by yesterday’s Chinese Caixin Services PMI, also provide some support to the higher-yielding Aussie. However, seems that the AUD/USD pair lost its positive traction earlier today on the back of renewed optimism around the US dollar. Adding to this, disappointing Australia’s trade balance numbers also added some bearish pressure on the pair, thus forcing it to change its direction. Today all traders’ attention will remain focused on the key event of this Friday – release of NFP, which is scheduled on the NA session and will help the pair to determine its further direction.

The USD/JPY pair extends yesterday’s rebound, while breaking through the level of 113.00 in the European morning on the back of several bullish factors. One of the main driving factors for the pair remains increased demand for risky assets, which exerts negative pressure on the safe-haven yen. Adding to this, renewed optimism around the greenback, caused by yesterday’s US ADP jobs data, also contributes to latest pair’s bullish rally. On the other hand, ongoing geopolitical drama between the US and N.Korea and upcoming crucial NFP data may easy demand for risky assets somewhat. Besides the US payrolls release, investors will also draw their attention to the data from the US non-manufacturing sector, which will also be released during the NA trading session.

Major events of the day:
EU Prelim. CPI – 12.00 (GMT +2)
US Nonfarm Payrolls – 15.30 (GMT +2)
US Unemployment Rate – 15.30 (GMT +2)
Canada Employment Change – 15.30 (GMT +2)
US ISM Non-Manufacturing PMI – 17.00 (GMT +2)
Canada Ivey PMI – 17.00 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1969 R. 1.2137
USDJPY S. 112.27 R. 113.09
GBPUSD S. 1.3484 R. 1.3592
USDCHF S. 0.9712 R. 0.9798
AUDUSD S. 0.7796 R. 0.7900
NZDUSD S. 0.7039 R. 0.7221
USDCAD S. 1.2436 R. 1.2580

Your European ECN-broker,
Forex.

[EEAnalytics]

Daily economic digest from Forex.ee
Stay informed of the key economic events

Tesday, January 9thu

The EUR/USD pair remains offered for the third consecutive session, extending its retreat from the area of its multi-year tops, located near the level of 1.2090. Recent weakness of the major is mainly explained by ongoing post-New Year correction of the US dollar. Moreover, even yesterday’s cautious comments regarding less aggressive rate hikes by Fed members failed to stop recovery of the greenback. Looking ahead, today the EU data calendar will bring only secondary data reports, which most likely won’t attract much of investors’ attention, while the US will publish JOLTs job openings, thus bringing fresh trading opportunities during the NA session.

The GBP/USD pair failed to keep its yesterday’s positive trend and retreated to the region of 1.3550. Seems that Brexit jitters are still gripping the market, thus weighing the pound across the board. Recently the UK PM T.May made an announcement on the appointment of another Brexit minister, whose responsibilities will include regular updates on preparations for leaving the EU without a trade deal. Moreover, ongoing optimism around the US dollar continues to dominate the market, thereby also contributing to pair’s recent retreat. However, further decline of the pair looks limited, as increased demand for higher-yielding assets is still persisting on the market, thereby providing some support to the risky pound. On the data front, today the UK data calendar will remain absolutely silent, leaving the pair at the mercy of broad market trend, while the US will publish data from the labor market, which will bring some trading opportunities later ahead.

The JPY/USD pair witnessed pretty volatile trades during the Asian session, making the yen the most profitable asset of this Tuesday. Earlier today, the pair came under strong selling pressure and dropped to the area of 112.50 on news that the BoJ reduces its daily JGBs purchases that appeared highly supportive to the Japanese currency. However, ongoing post-New Year correction of the US dollar helped the pair to recover some pips and meet the European morning near the level of 112.70. Today, all traders’ attention will remain glued to another report from the US labor market, while the US dollar dynamics and increased risk appetite will continue to navigate the pair on Tuesday.

The AUD/USD pair regained its positive tone this Tuesday, having recovered some positions after yesterday’s slide from its multi-month highs, marked on the level of 0.7875. Renewed optimism around the pair is mainly attributed to ongoing demand for higher-yielding assets, which exerts support to the Australian currency. Adding to this, green numbers from the Australian housing market, published in Asia, also contribute to pair’s upside correction this Tuesday. On the data front, the US will publish JOLTS job openings data, which will help the pair to form its trajectory in the NA session, but until then the US dollar dynamics will remain the key navigator for the major.

Major events of the day:
US JOLTs Job Openings – 17.00 (GMT +2)

Support and resistance levels for the major currency pairs:
EURUSD S. 1.1894 R. 1.2088
USDJPY S. 112.61 R. 113.61
GBPUSD S. 1.3495 R. 1.3621
USDCHF S. 0.9718 R. 0.9810
AUDUSD S. 0.7801 R. 0.7891
NZDUSD S. 0.7137 R. 0.7201
USDCAD S. 1.2343 R. 1.2487

Your European ECN-broker,
Forex.