Fed Chair Janet Yellen Set To Step Down
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Yesterday, Federal Reserve chairwoman Janet Yellen announced her resignation as a member of The Federal Reserve board of governors once her successor, Jerome Powell, has been sworn in. Ms. Yellen's Four-year term as chairwoman ends in February 2018 and her term on the Fed board does not expire until 2024. The markets experienced moderate volatility as the US president now has four seats on the board of governors to fill including that of the Fed vice chairman.
Overall trading activity was fairly subdued today as the US gears up for the Thanksgiving holiday on Thursday. Attention on tax reform plans in the US has softened until after the holiday. Japan also celebrates Labour Thanksgiving on the same day. The USD maintained its week-long high against the euro as the German political situation continues to weigh on the euro.
The euro did recover some of its losses from the previous day but is still trading in the low $1.1741 region. While the Eurozone economy is showing positive signs, the German political scene is holding back the currency. Chancellor Merkel said she would opt for new elections rather than be in a minority government.
The AUD reached a five-month low to $0.7531 following the Reserve Bank of Australia minutes released earlier today. Concerns around wage growth are weighing on the economy and signal that interest rates are likely to remain at their record-low levels.
EUR/USD
The EUR/USD pair is trading below its key resistance level which is expected to limit the upside potential. Both declining 50 day moving average and 20 day moving average maintain the bearish outlook. The relative strength index also lacks upward momentum. To Sum up, as long as price remains below 1.18080 look for further downside to 1.1695 and 1.1636 (last week's low). Alternatively, above 1.18080 look for 1.1859 (last week's high) and 1.1879 (last month's high).
USD/CAD
USD/CAD is trading with a bullish outlook above 1.27540 (yesterday's low). The pair managed to break above its intraday symmetrical triangle. Both the 50 day and 20 day moving average are heading upward. The relative strength index holds above its neutrality area at 50. As long as the price is above 1.2754 look for target 1.2835 (today's high) and 1.2875. Alternatively, below 1.2754 look for 1.2700 and 1.2670 (last week's low).
GBP/USD
GBP/USD is expected to continue its upside movement above its key support at 1.31850 (yesterday's low). Both 50 day moving average and 20 day moving average are bullish. As long as the price remains above 1.31850 look for further upside targets at 1.32785 (yesterday's high) and 1.3305. Alternatively, below 1.31850 look for 1.3125 and 1.3061 (last week's low).
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