Lagarde says difficult times have come, and the ECB raised the rate not to cause a recession but to stabilize prices. Read the report to learn the freshest news of the day!
Market updates on October 31
European Quarterly GDP Growth Rate – 12:00 MT (10:00 GMT)
American Monthly Personal Income and Personal Spending Index – 14:30 MT (12:30 GMT)
- The US Fed announced the interest rate cut to 1.75% on October 30. EUR/USD reacted by rising. On the H4 chart of EUR/USD, the day has started with the price inching into the resistance range of 1.1167 – 1.1177 and possibly aiming at another 3-months resistance level of 1.1217. The support levels of 1.1101 and 1.1076 remain valid unless a strong bearish movement appears on the chart.
- While the Bank of Canada released the unchanged interest rate of 1.75% against the lowered rate of US Fed on October 30, the USD/CAD performed a sharp rise during the announcement. That was due to the negative tone the officials expressed in regards to the likely contractions within the investments, exports, employment growth and global economy slowdown pushing the Bank of Canada to implement monetary ease in the coming future. On the H1 chart of USD/CAD, the price bounced back from the newly formed local resistance level of 1.3180, testing the support level of 1.3152. If it is broken, we will have a range of 1.3120 – 1.3131, 1.3078 and 1.3049 as the support levels. Otherwise, the additional resistance level may be placed at 1.3208.
- On the H4 chart of USD/JPY, the quote has dropped to the support level of 108.65. That was due to the unchanged Japanese interest rate (set at -0.1% as per October 31 release) against the lowered US Fed rate, which led to relative depreciation of the US dollar. However, the likelihood of the monetary ease in the future on behalf of the Bank of Japan keeps the Japanese yen dropping slowly, viewing the resistance levels of 108.99 and 109.254. The support level of 108.55 and the range of 108.34 – 108.41 remains valid.
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