Whoever coined the phrase "Risk Appetite" at the beginning of this year can be proud of its success. Almost any comment on the USD uses "Risk Appetite" when it comes to explaining the dollar's movements and equally its reaction in stock markets. We think that has gone too far (although it really needed a lot of courage or the appetite for risk to enter the stock market in early 2009). Equity markets are, technically speaking, on a sound uptrend and therefore signalling rising world economies. The USD will no longer be hampered by that appetite once inflation starts to rise after the world's economies recover and begin to reverse QE programs. One might wonder which generally used expression could be en vogue next year. Hopefully not "bubble" or "irrational exuberance."
For today's trading, we see another attempt to test the longer-term support zones of the USD. Accordingly, we look for favorable selling points as explained in detail below for the major pairs. Note the publication of U.S. housing starts and housing permits for October, at 14:30 CET, also the release of the consumer price index for October at the same time. Expectations are rather on the positive side: consumer prices are expected to remain stable and housing is expected to show a slightly recovery.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair continues its uptrend in early European trading, right now at 1.4942 testing the 1.4950 minor resistance mark after yesterday`s lows around 1.4810. A downward correction could set in now, but not below the 1.4910 mark. Later, another upmove is in the cards, breaking the 1.4950 level, leading to a test of the 1.5020 major resistance.
GBP / USD
In unusual low volatility, the pound is so far still caught in a narrow trading range with a slight bid tone after the minutes were released from the BOE meeting and is currently trading at 1.6805 against the dollar. We expect an upmove in today's trading, breaking first the 1.6850 resistance and later reaching prices around 1.6890.
USD / CHF
From yesterday's highs around 1.0205, the dollar plummeted against the Swiss franc this European morning and is currently priced at 1.0110. After some up correction moves now, we expect the 1.0100 support level to be broken today, testing the next support at 1.0050.
USD / JPY
In low volatility, the dollar has lost minor territory against the yen in late Asian and early European trading, currently priced at 89.10, obviously steering towards the lower end of the narrow trading range at 88.70. We see some upmoves in again low volatility, but not above the 89.50 level.
For today's trading, we see another attempt to test the longer-term support zones of the USD. Accordingly, we look for favorable selling points as explained in detail below for the major pairs. Note the publication of U.S. housing starts and housing permits for October, at 14:30 CET, also the release of the consumer price index for October at the same time. Expectations are rather on the positive side: consumer prices are expected to remain stable and housing is expected to show a slightly recovery.
by George Clement
Intraday Market Outlook for Day Traders
EUR / USD
The pair continues its uptrend in early European trading, right now at 1.4942 testing the 1.4950 minor resistance mark after yesterday`s lows around 1.4810. A downward correction could set in now, but not below the 1.4910 mark. Later, another upmove is in the cards, breaking the 1.4950 level, leading to a test of the 1.5020 major resistance.
GBP / USD
In unusual low volatility, the pound is so far still caught in a narrow trading range with a slight bid tone after the minutes were released from the BOE meeting and is currently trading at 1.6805 against the dollar. We expect an upmove in today's trading, breaking first the 1.6850 resistance and later reaching prices around 1.6890.
USD / CHF
From yesterday's highs around 1.0205, the dollar plummeted against the Swiss franc this European morning and is currently priced at 1.0110. After some up correction moves now, we expect the 1.0100 support level to be broken today, testing the next support at 1.0050.
USD / JPY
In low volatility, the dollar has lost minor territory against the yen in late Asian and early European trading, currently priced at 89.10, obviously steering towards the lower end of the narrow trading range at 88.70. We see some upmoves in again low volatility, but not above the 89.50 level.
