On Thursday, November 18, following the auction, the euro rose in price against the dollar by 0.46%, to 1.1371. The weakening of the dollar began in the Asian session. The locomotive was the New Zealander after the publication of inflation data in New Zealand. In the American session, the dollar index continued to fall against the backdrop of declining yield on 10-year bonds.
Scheduled statistics (GMT +3):
- At 10:00, in Germany will be released PPI for October.
- At 10:00, UK is to publish October retail sales, October net borrowing by the public sector.
- At 11:00, ECB President Christine Lagarde will deliver a speech.
- At 12:00, the Eurozone will present the September balance of payments.
- At 15:00, Bank of England Chief Economist Hugh Pill will deliver a speech/
- At 16:00, President of the Bundesbank Jens Weidmann will deliver a speech.
- At 16:30 in Canada, there will be a report with data on the volume of retail for September.
- At 18:45, FOMC member Christopher Waller will give a speech.
- At 20:15, FOMC member Richard Clarida will speak.
- At 21:00, ECB President Christine Lagarde will deliver a speech.
Current situation:
As of this writing, the major currencies are showing mixed performance. At the beginning of the Asian session, all currencies were trading in negative territory. Plus came the Australian, Canadian and pound. The economic calendar is empty, therefore, the focus of market participants remains on the speeches of the Central Bank representatives and the dynamics of yields on US and European government bonds.
ECB President K. Lagarde speaks twice today. Considering that it performs every day, it is unlikely to have an impact on the market.
Technical analysis:
For one euro, they give 1.1326. The price corrected by 20 points and buyers are ready to continue the recovery to 1.1386. On Thursday, the euro was recovering due to the growth of the EUR / GBP pair. It was more of a technical pullback than a fundamental one. The cross can be seen at the level of 0.8450. If the correctional movement continues, the euro will rise in price against the US dollar.
As for the dollar index futures, sellers have appeared on the horizon at the level of 95.43 points. The yield on 10-year US bonds has been trading at 1.59% per annum for several hours. Major pairs are well worth the upward movement to continue.
Summary: on Thursday, the euro closed with growth. The single currency rose in price on the recovery of the crosses after falling in the first half of the week. If the corrective movement of the cross continues, the euro will rise in price against the US dollar. Resistance is at 1.1385. The market participants focus on the statements of the Central Bank representatives and the dynamics of the yields on US and European government bonds.