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18 November Forex daily review

Sergiy Zlyvko
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On Monday, the major pairs closed mixed, but after trade almost candles closed with small bodies like Doji.

Trading in the European session was relatively quiet. The U.S. dollar fell slightly against the single currency and the British pound. The economic calendar for important data was poor and there was no driver for volatile currencies in the market.

During the fall of GBPUSD, EURUSD was trading for five hours near the level of 1.35. The U.S. dollar weakened against the euro to 1.3540 in the U.S. session, as the stock market opened with sharply increase. DJA and S&P 500 indices updated yearly highs. Prior to the performances of Charles Plosser and William Dudley, currency traders focused on the dynamics of stock indices.

On the comments of Charles Plosser and William Dudley, the U.S. dollar regained some losses, and stock indexes closed lower. We think the market will remain in this state until the twitch publication of the U.S. Federal Reserve meeting minutes. Plosser and Dudley adhere to the earlier minimize of QE3 and this may be reflected in the minutes of the October meeting of the Committee, which will be published on Wednesday.

There are no more news scheduled for Tuesday, ZEW index in Germany is the main among the news today. Just today, a lot of politicians are going to speak. At 12:15 GMT ECB board member Ewald Nowotny will speak. At 17:45 GMT the Minister of Finance Jacob Lew speaks. At 15:00 GMT Dudley speaks again and 19:15 GMT FOMC member Charles Evans ends the day.

Any of the speakers can pick up the financial markets surge shopping dollar or sale wave. Short-term downward trend of the dollar, which is the correction, decays. Stock markets in the U.S. session falling can cause the liquidation of short dollar positions by the traders. We’ve been watching the market from the outside, because it gets mixed signals. If you look at H4 EURUSD, there is a need for aggressively short of the euro making for the next two days. However, the low activity of sellers creates uncertainty.

Against the backdrop of a sharp rise in EURGBP cross rate and stock index, the euro/dollar touches highs at 1.3540. Perhaps pounds have been sold in anticipation of the Bank of England minutes publication. They are going to be published on Wednesday and it is too early to react. It was more like as fixing for technical reasons. Eurobulls won on euro fall, but they lose the profit after Charles Plosser’s and William Dudley’s speeches.

In Monday amid a sharp rise of U.S. stock indexes, USDCHF rate fell to 0.9095. From 0.9095 on the comments of Charles Plosser and William Dudley, the rate recovered to 0.9140. The trend for today we consider the fall to 0.9090. Price pulled back to 0.9140 and since the average downward waves up to 0.9120, so we chose that option. If the price strokes 0.9140, it will be the signal for a deep correction.

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