On Monday, November 22, trading in the euro ended in decline. The euro fell 0.39% to $ 1.1237. A sharp drop in prices was observed in the American session. The growth of the dollar index was facilitated by the news that US President Joe Biden nominated the current head of the Federal Reserve System (FRS) Jerome Powell for a second term in this post. The second candidate, Leil Brainard, has been nominated for the position of his deputy. Biden believes Powell and Brainard will provide strong leadership.
Scheduled statistics (GMT +3):
- At 11:15, France is to publish an index of business activity in the manufacturing and services sectors for November.
- At 11:30, Germany is to publish an index of business activity in the manufacturing and services sectors for November.
- At 12:00, the Eurozone is to publish an index of business activity in the manufacturing and services sectors for November.
- At 12:30, the UK is to publish an index of business activity in the manufacturing and services sectors for November.
- MPC Member Haskell will give a speech at 2:00 pm.
- At 17:45, the US is to publish an index of business activity in the manufacturing and services sectors for November.
- At 18:00, in the US will be released the index of business activity in the industry from the FRB of Richmond for November. The head of the Bank of England E. Bailey will deliver a speech.
- At 18:30, Australia will present the index of leading indicators from CB September
- At 21:00, Bank of Canada Board Member Paul Baudry will deliver a speech.
Current situation:
As of this writing, the major currencies are showing mixed performance. In the last hour, the euro and franc have gone up. The New Zealander bears the greatest losses against the US dollar. It is believed that it is being sold before the RBNZ meeting.
The current week will be shortened. US exchanges will be closed Thursday for Thanksgiving weekend. Today the attention of market participants is riveted on PMI indices in the manufacturing and service sectors of the EU countries. The head of the Bank of England E. Bailey will speak at the American session.
Technical analysis:
Sellers pushed as low as 1.1226. At the hourly timeframe, we have several lowering lows. At the auctions in Asia, sellers did not aggressively sell the euro. The EUR/GBP cross held above 0.8380. There are technical signals for an upward correction to 1.1278 (45 degrees). The price pattern on the hourly TF also indicates a readiness for a pullback. If the PMI indices do not upset investors, then it is likely to see a correction in the dollar and the euro by the end of the week.
Summary: the euro closed lower on the back of the dollar rally. The strengthening of the dollar prompted a report that Biden had nominated J. Powell for a second term. On the daily TF, sellers' target is at 1.0900. If we consider smaller time frames, then the market is ready for a 2-3 day correction in duration.