The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
Market updates on November 13
Key events ahead:
US CPI and core CPI – 15:30 MT time (12:30 GMT)
Testimony by the Fed Chair Jerome Powell – 18:00 MT time (15:00 GMT)
Speech by the RBNZ Governor Adrian Orr – 21:10 MT time (18:10 GMT)
- During the Tokyo trading hours, the RBNZ decided to leave the interest rate unchanged at 1%. The RBNZ governor noted that the policy is already very stimulating at present. The unexpected decision supported the kiwi. As a result, we’ve seen the gains of the NZD against the USD. On H4, the New Zealand dollar has been testing the 0.6403 level. The next focus for the pair will be on the further updates concerning the updates on the US-China phase one trade deal. If the news results in the risk-on sentiment, the pair will break the current resistance and move higher towards the next key level at 0.6415. After that, bulls will pay attention to the 0.6426 level. The downward momentum for the pair is limited by the 0.6391 level. The next support will be placed at 0.6369.
- EUR/USD is awaiting the release of the American indicators of inflation. On H4, the pair is trading within a downward trading channel. Yesterday’s test of the 1.1003 level did not make bears stronger, as the pair managed to recover to the 1.1015 resistance level. If the indicators of inflation for the US are greater than the forecasts, the break of the 1.1003 level will be inevitable and bears will focus on reaching the 1.0994 level. The further fall will be limited by the 1.0984 level.
- Gold has been making its steady gains since yesterday. Bulls are looking forward to the reaching of the $1,466.3 level on H4. In case of a breakout, the chances of reaching the $1,471 level are high. On the other hand, bears may try to pull the price for the yellow metal below the $1,457.6 level. In that case, the next support will lie at $1,499.8.
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.