Good morning from beautiful Hamburg. We hope you had a relaxed weekend and enough power for the new trading week now. Today the US unemployment Index for October will becomes interesting. The British PPI in- and output prices might move the market in the GBP.
Market review
The AUD rose 2.4 percent versus the USD to 0.6908 even after RBA cuts GDP growth forecasts. Housing data are weaker than expected, supported by a 1.3 percent gain in AUD/JPY, as Asian shares climbed and encourage investors to return to carry trades. RBA decreases its forecasts to economic growth for the next 2 years, saying it will be reviewing interest rates in the upcoming month to avoid an even sharper slowdown in domestic demand.
The USD rose against the JPY on Friday boosted by sharp gains in US equities led by energy shares. Early in the morning the USD felt versus Japanese currency following weak US non farm payrolls report for October. The analysts said market participants were covering short positions on the greenback as stocks turned around.
The NZD is a little bit stronger versus USD after centre-right Bloc’s decisive has won in the general election. The NZD rose one percent to 0.5970 after Prime Minister - elected John Key - says he wants to form a government by November 17th. The NZD is also supported by an upswing in risk appetite, with a strong finish on Wall Street shares at the end of last week.
EUR/USD
The EUR fell last month against USD more than 14 percent to a low level in October at 1.2332 and then it returned and stayed around 1.30. The EUR moves in an upward triangle with the resistance at 1.30, since its low. This could be a sign for an upward breakout within the next days.
USD/CHF
The CHF lost versus USD, as the EUR. The rate showed a hard resistance at 1.18, since the beginning of November. A change in the trend might be possible regarding the last rate cut of the Swiss central bank. Another fundamental sign for a trend change in the USD could be a strong climbing unemployment rate in Q3 in the USA.
