Good morning from Hamburg and welcome to our first Daily FX Report for this week. Emergency workers filled thousands of sandbags on Sunday as the area around Buffalo, New York braced for potential flooding as warming temperatures began to melt up to seven feet (2 meters) of snow. Hundreds of members of the New York National Guard were in Erie County and Buffalo to help with flood prevention after days of work to clear roads and dig homes and cars out of the record snow from a storm that killed 13 people. The National Weather Service said roads could flood quickly from snow melt, since the storm blocked drains, and issued warnings for potential flooding of four rivers and creeks.

Anyway, we wish you a successful trading week!


Market Review – Fundamental Perspective

One week after the European Central Bank president vowed to revive inflation “as fast as possible”, policy makers will receive a glimpse on just how feeble cost pressures are now in the euro region. Economists forecast data on November 28 will show consumer-price growth matching the weakest since 2009. That would add to the drumroll for a stimulus debate at the December 4 meeting as panels of officials study possible new measures to prepare to cut their economic outlook. While Draghi has stoked pressure toward sovereign-bond buying, colleagues from Germany to the Netherlands are unconvinced quantitative easing is warranted, and his vice president suggested at the weekend that the ECB might hold off until next year. Inflation data for November are forecast to show a dip to 0.3 percent from 0.4 percent, while economic confidence is seen declining and October unemployment staying at 11.5 percent, according to economists surveyed by Bloomberg before those reports this week. The inflation rate has held below half the ECB ́s target of just below 2 percent for the past year, spurring interest-rate cuts as well as programs of long-term bank loans and covered-bond buying, with purchases of asset- backed securities starting last week. The euro approached a two-year low versus the dollar before German data forecast to show business confidence declined for a seventh month. The shared currency fell against major peers on November 21 after European Central Bank President Mario Draghi said officials “ will do what we must” to raise inflation. It fell 0.2 percent to $1.2373. It touched $1.2358 on November 7, the lowest since August 2012. The single currency slipped 0.2 percent to 145.68 yen.


Daily Technical Analysis

GBP/USD (4 Hours)

As the chart shows, the GBP decreased steadily versus the USD since the mid of October. The support line at 1.5596 was strong enough as the price was unable to break through and rebounded. The price touched twice the 1.5727 and rebounded towards 1.5596. On a short term the CCI is indicating a possible upward movement, but further losses may occur.

GBPUSD

Support & Resistance (4 Hours)

This document is issued and approved by Varengold WPH Bank AG. The document is only intended for market counterparties and intermediate customers who are expected to make their own investment decisions without undue reliance on the information set out within the document. It may not be reproduced or further distributed, in whole or in part, for any purpose. Due to international laws/regulations not all financial instruments/services may be available to all clients. You should have informed yourself about and observe any such restrictions when considering a potential investment decision. This electronic communication and its contents are intended for the recipient only and may contain confidential, non public and/or privileged information. If you have received this electronic communication in error, please advise the sender immediately, and delete it from your system (if permitted by law). Varengold does not warrant the accuracy, completeness or correctness of any information herein or the appropriateness of any transaction. Nothing herein shall be construed as a recommendation or solicitation to purchase or sell any financial product. This communication is for informational purposes only. Any market or other views expressed herein are those of the sender only as of the date indicated and not of Varengold. Varengold reserves the right to consider any order sent electronically as not received unless it is confirmed verbally or through other means.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD: A tough barrier remains around 0.6800

AUD/USD: A tough barrier remains around 0.6800

AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by50 bps.

AUD/USD News
EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD still targets the 2024 peaks around 1.1200

EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.

EUR/USD News
Gold surrenders gains and drops to weekly lows near $2,550

Gold surrenders gains and drops to weekly lows near $2,550

Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.

Gold News
Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum could rally to $2,817 following Fed's 50 bps rate cut

Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.

Read more
UK CPI set to grow at stable 2.2% in August ahead of BoE meeting

UK CPI set to grow at stable 2.2% in August ahead of BoE meeting

The United Kingdom Office for National Statistics will release August Consumer Price Index figures on Wednesday. Inflation, as measured by the CPI, is one of the main factors on which the Bank of England bases its monetary policy decision, meaning the data is considered a major mover of the Pound Sterling.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures