The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Market updates on November 5
Key events ahead:
Canadian trade balance – 15:30 MT (13:30 GMT);
American ISM non-manufacturing PMI – 17:00 MT (15:00 GMT);
New Zealand’s jobs data – 23:45 MT (21:45 GMT).
- EUR/USD fell yesterday towards the 50-period SMA on H4 but failed to break it. Bulls have managed to take over the market and push the pair higher. At the moment, it is testing the 1.1132 level. If the USD gets weaker, the pair will break the current resistance and rise higher towards the 1.1149 level. On the other hand, the retest of the support below the 50-period SMA at 1.1121 will increase the chance of reaching the next support levels at 1.11-1.1106.
- NZD/USD has been boosted by the positive news concerning US-China trade talks. According to reports, Washington is considering the request by China to remove the 15% tariffs on around $112 billion worth of goods. The announcement improved the risk-on sentiment in the markets. At the moment of writing, the kiwi has been targeting the 0.6427 resistance level. If this level is broken, the next one will be placed at 0.6437. After that, reaching the 0.6449 level may be possible.
- The positive risk sentiment strengthens the Canadian dollar, too. The USD/CAD pair has tested the 1.3122 level below the 100-period SMA on H4. If the loonie is supported by today’s release of a trade balance at 15:30 MT, this level will be broken and the next support will lie at 1.3103. As far as this level is broken, bears will target the 1.3083 level. From the upside, it is recommended to pay attention to the 1.3158. Then, bulls will keep an eye on the 1.3171 level.
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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.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!