Forex today: worries for the US dollar

• The US dollar is falling after the 3-day rise. On Wednesday, the Fed released the interest rate and gave comments on its decision. As anticipated, the interest rate remained unchanged at 1.75%, however, the comments were not supportive for the greenback. The Fed’s words about the “symmetric” nature of its 2% inflation target seemed to signal an excess of the target. Furthermore, the FOMC removed the line saying the outlook had strengthened from its statement that added worries to investors.

Investors are waiting for the trade negotiations between US and China in Beijing that begin on Thursday. Moreover, some important economic data for the US dollar will be released on Thursday and Friday. If actual data are greater than forecast ones, the US dollar will have chances to recover.

• EUR/USD reached 200-day MA that appeared to be the resistance. So the pair rebounded. Thursday economic data are weaker than anticipated that is why there is a possibility that the pair will move to the support at 1.1920. However, a further depreciation of the US dollar will give chances to the euro to continue its rise. The resistance will be again at 200-day MA.

• UK Services PMI data was weaker than expected (52.8 vs 53.5). As a result, the pound is suffering. GBP/USD reached the support at 1.3570 but did not break it. As no important data for the UK currency is anticipated on Thursday and Friday, the pair may break the support and move further to the 200-day MA at 1.3525.

• The Australian dollar managed to find a support to recover. Today’s economic data appeared to be greater than expected: trade balance 1.53B vs 0.68B; building approvals 2.6% vs 1.1%. As a result, the AUD/USD pair broke the resistance at 0.7513 and now it is trying to move further. If the pair is able to close above this level, the next resistance will lie at 0.76.

• USD/JPY could not stick above the resistance at 109.80 and moved down. An extensive trading is not anticipated as it is a bank holiday in Japan until next week. Now the pair is trading near 50.0 Fibonacci retracement. If the US dollar does not find a support, the pair will move to the pivot point at 108.75. However, if US-China trade negotiations are successful and the US economic data are positive, the pair will turn around. The resistance will lie at 110.20 (200-day MA).

• Oil lost some points on Wednesday as crude oil inventories data showed a significant surplus: actual 6.2M vs forecast 1.0M. However, concerns about US sanctions on Iran overshadowed the surplus and oil managed to increase. Brent is near $73.50 a barrel, WTI is slightly above $68 a barrel. Let’s see whether the US will find an opportunity to withdraw from the agreement.
• On Wednesday Bitcoin rebounded from the 100-day MA and closed above $9,000. Today the Bitcoin trading is not showing a significant movement, however, the cryptocurrency is still above $9,000.

Goldman Sachs, one of the largest financial institutions in the US, announced a launch of a Bitcoin trading desk. The company will offer its clients future contracts. Let’s see how Bitcoin will react.

That is all for today. Follow markets news with us!

Similar

19.11.2018 08:09 Japan's exports bounce off in October, powered by American car imports

In October, Japan's exports rebounded, reversing from September’s steep dive because US-bound auto shipments rallied, although decelerating global demand along with the intensifying US-China trade conflict worsened the outlook for export-reliant Japan…

jpy economy asia

16.11.2018 14:47 Euro zone inflation reaches six-year maximum in October

In October, euro zone inflation demonstrated its fastest tempo for almost six years, powered by energy prices…

economy forecast europe

16.11.2018 11:05 Weekly Cryptonews

The crypto market experienced huge losses during this week. What are the reasons?

ethereum bitcoin litecoin dash

Latest news

18.04.2018 10:22 Forex today: easing geopolitical tensions

Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…

usd oil jpy geopolitics trump

31.07.2018 09:38 Common currency ascends ahead of euro zone data

On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…

eur forex exchange inflation

24.07.2018 19:10 Greenback edges down

On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…

usd forex exchange economy