EURGBP, H4
The US Dollar is still under pressure against Euro, with EURUSD opening in the London interbank market on a bid following above-forecast German GDP data, pushing to early-November highs near 1.1719. The same price action has been seen in all Euro crosses after German Nov ZEW investor confidence nudged higher to 18.7 from 17.6 in October. The overall Eurozone readings also improved further, with Eurozone Q3 GDP confirmed at 0.6% q/q,in line with expectations and the initial estimate. There still is no full breakdown, but Germany’s stats office this morning reported a strong contribution from external demand and net exports. The same is likely to hold for the Eurozone as a whole. Indeed, industrial production data, released at the same time, showed production down -0.6% m/m and up 1.1% q/q, with the latter a slight deceleration from the 1.2% q/q reported for the second quarter. So the domestic economy is racing ahead and is now getting backing from improving world growth and international demand.
The pound on the other had lost about 40 pips to the dollar in the immediate wake of the data release, leaving a low at 1.3074, while EURGBP is at new month’s high at 0.8953 since the steady UK Oct CPI data at 3% y/y added further weakness on Sterling. EURGBP opened today and is traded above a two months trend-line and the 50-Day MA at 0.8890. In addition to this Daily Stochastic has unwound again above 50.0 while the Parabolic SAR turned positive yesterday. Both suggest that positive momentum turned back for a possible push higher up to 50.0 Fibonacci level at 0.9020, which is last week’s resistance and last month’s high. Hence a retest of the 0.9020 October resistance seems to be back in play again. Support comes between 20 DAY and 50-Day MA at 0.8880-0.8890.
Meanwhile, after the sharp incline up to 38.2 Fibonacci level, the pair is likely to present a correction or consolidation mode for the rest of the day. The Stochastic is overbought in the 1-hour and 4-hour charts, while Upper Bollinger bands pattern have been extended, presenting a limited upside momentum in these two time-frames. Hence in contrast with the high-term, a Short Position was taken intra day, with entry at 0.8949 and target down to recent high fractal at 0.8920. Support set at 0.8980.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
FBI cautions against non-KYC Bitcoin and crypto money transmitting services as SEC goes after MetaMask
US FBI has issued a caution to Bitcoiners and cryptocurrency market enthusiasts, coming on the same day as when the US Securities and Exchange Commission is on the receiving end of a lawsuit, with a new player adding to the list of parties calling for the regulator to restrain its hand.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.