Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
Market updates on November 22
Key events ahead
British CIPS Manufacturing PMI Flash – 11:30 MT time (09:30 GMT)
Canadian Monthly Retails Sales – 15:30 MT time (13:30 GMT)
- On the H1 chart of EURUSD, the price dropped to the level of 1.1056 yesterday evening, then went up into a correction. If the next Parabolic indicator’s mark completes as the third in the row in the upward direction that will reconfirm the bullish trend. In this case, the bulls may have 1.1081 and 1.1092 as the resistance levels. The bears may locate the support levels at 1.1062 and 1.1056.
- On the H1 chart of USDCAD, the Stochastic Indicator shows the fast line crossing the slow line upside down within the oversold zone. That means that the price will be soon under pressure down. If the downward movement breaks through the local support levels of 1.3271 and 1.3263, it will have the next target at 1.3202. The resistance levels may be located at 1.3288 and 1.3324.
- On the H1 chart of GBPUSD, the price shows a sideways movement above the support level of 1.2893. If the British economic data to be released today is positive, the GBP may gain strength and aim at the resistance levels of 1.2932 and 1.2964. Otherwise, an additional support level may be placed at 1.2873.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
USD’s rally takes a pause, while riskier assets are modestly rising.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.