- The United States revoked the license of China Telecom to operate in the United States.
- Fitch downgraded another Chinese developer Kaisa Group.
- The Chinese authorities have asked the head of Evergrande, Hui Ka Yan, to sell his personal property to settle with creditors.
- Tensions between Britain and France.
- The Bank of Canada has curtailed QE and is going to raise the rate.
- Decrease in the yield on 10-year bonds to 1.52%.
On Wednesday, October 27, trading in the euro ended slightly higher. The euro / dollar pair rose 0.06% to 1.1603. The day turned out to be volatile for the foreign exchange market. The EUR / USD pair traded in the 1.1585-1.1626 price range.
The dynamics of the EUR/USD pair was influenced by news from the United States and China, American statistics, tensions between the UK and France over fishing rights and a new scandal over the Northern Ireland protocol, as well as waiting for the ECB's decision.
Durable goods orders declined in September. The data showed that the manufacturing sector is being held back by supply shortages.
USD/CAD fell sharply after the Bank of Canada announced the end of QE. The Canadian has strengthened in all directions, pulling up other currencies. The euro closed at 1.1603.
Scheduled statistics (GMT +3):
- At 10:55, Germany to publish employment report for October
- At 14:45, the ECB will announce its decision on the interest rate.
- At 15:30, a press conference by the head of the ECB K. Lagarde will take place
- At 15:30, in the US GDP for Q3 will be released, initial jobless claims in October.
- At 17:00, the US is to publish a report on pending home sales in September.
Current situation:
As of this writing, the major currencies are showing mixed performance. For one euro, they give $ 1,1600. Low volatility is expected before the American session, as two important events are scheduled for today: Lagarde's press conference and the US Q3 GDP report. Since the United States will publish the first estimate for GDP, then we should expect high volatility after 15:30 (GMT +3). here you just need to understand that the first reaction will be to statistics, and then to the comments of K. Lagarde.
Technical analysis:
Before the ECB meeting, the EUR/USD pair is trading near the balance line. The technical picture indicates an increase in prices. The yield on 10-year bonds fell to 1.52%. With its decline, the dollar comes under pressure, so buyers now have a good opportunity to return to the level of 1.1626.
Today, resistance for buyers is the levels: 1.1616, 1.1633 and 1.1660. The supports are located at 1.1591 and 1.1575.
Summary: the euro closed slightly higher on Wednesday. The EUR/USD pair remains sideways in the range of 1.1585-1.1626. The focus of market participants remains on the press conference of K. Lagarde and the report on GDP in the United States for the 3rd quarter.