Shaped by way of a bullish outside day configuration, EUR/USD movement recovered in reasonably robust fashion Thursday. Data out of Germany came with an upbeat tone and markets largely shrugged off better-than-expected US PPI figures.
Federal Reserve Chairman Jerome Powell, in his testimony to the Congressional Joint Economic Committee, largely stuck to the script – policy on hold unless there is a meaningful change in the outlook.
Despite kicking off the week strongly, GBP/USD movement entered a reasonably narrow consolidation Tuesday, between 1.2873/1.2815. On the data front, unemployment in the UK ticked lower by 3.8% vs. 3.9%, while average earnings reported a 3.6% decline vs. 3.7%, revised from 3.8%.
Key risk events today: UK Average Earnings Index 3m/y; UK Claimant Count Change; UK Unemployment Rate; German ZEW Economic Sentiment; FOMC Member Clarida Speaks. EUR/USD: EUR/USD movement opened the new week a shade higher, consequently snapping a five-day bearish phase from 1.1175. The dollar index, or DXY, receded from highs of 98.40, poised to revisit … Continue reading Tuesday 12th November: Dollar snaps five-day winning streak; a retest of 98.00 likely in store.
Five successive days of selling, primarily opening by way of a clear-cut bearish engulfing candlestick formation, witnessed the EUR/USD tunnel through prominent support at 1.1072.
