The US dollar turned to the upside on Monday. Let's discuss what to expect next from the market.
Market updates on November 15
US retail sales and core retail sales – 15:30 MT time (12:30 GMT)
During the Asian trading session, the White House economic adviser Larry Kudlow announced the positive progress in phase one trade deal with China. It increased the risk-on sentiment in the market.
- USD/JPY took advantage of the news and has risen higher. The pair has tested the 108.6 level on H4. If bulls manage to break this level, the next resistance will lie at 108.7. After that, reaching the 108.78 level (100-period SMA) will be possible. From the downside, bears will be looking for a breakout of the 108.51 level. If it happens, the chance of falling towards the 108.42 level will increase. The next support will lie at 108.28.
- The price of gold has bounced from the 50-period SMA on H4 and moved lower. Since the beginning of the trading session, it has slid towards the support at $1,461. If this level is broken, the next support will be placed at $1,457.6. From the upside, if gold’s price rises above the $1,466, the next key level will lie at $1,471 (50-period SMA).
- EUR/USD is awaiting the release of indicators of US headline and core retail sales. According to the forecasts, the former indicator will advance by 0.1%, while the latter is expected to increase by 0.3%. If the actual figures outperform the forecasts, the euro will fall below the 1.1015 level on H4 and will likely test the support at 1.1003. On the other hand, if the figures disappoint, the breakout of the current resistance at 1.1025 will occur and may drive EUR/USD up to the 1.1034 level.
Three main drivers of the market: the stimulus package, the US presidential election and the coronavirus. Let's look how market reacts.
EU Flash Manufacturing & Services PMI will come out on Friday at 11:00 MT time!
The focus of traders’ attention shifted from Brexit and the US stimulus to the coronavirus . The WHO claimed that Europe become the new Covid-19 epicenter.
Canada will publish the monthly GDP growth on October 30 at 14:30 MT time.
The European Central Bank publishes the monetary policy statement alongside with an update on the interest rate on October 29, at 14:45 MT time.