US DOLLAR HOLDS STEADY AFTER STRONG PAYROLL DATA

The Japanese yen weakened slightly even after Japan published relatively strong economic numbers. According to the statistics agency, the country’s household spending increased sharply in September. Spending rose by 5.0% in September after falling by 3.9% in the previous month. This increase was better than the median estimate of 2.8%. Additional data showed that more investors bought Japanese stocks in October. They bought stocks worth more than 411 billion yen, which was higher than the previous 230 billion yen. This is a positive thing for both yen and stocks.

The euro declined to the lowest level since October 1 as investors reflected on the divergence between the ECB and the Federal Reserve. Also, the pair declined after the relatively weak Eurozone retail sales numbers. According to Eurostat, the bloc’s retail sales declined by 0.3% in September after rising by 1.0% in the previous month. This decline led to an annualized increase of 2.5%. Sales in fuel stations increased by 1.1% while food and drinks increased as well. Germany’s retail sales volume fell by 2.5% while France and Italy recorded some modest gains.

The USDCAD pair declined after the latest jobs numbers in the US and Canada. In the United States, data showed that the economy added more than 531k jobs in September. This was an improvement after the economy added 312k jobs in the previous month. It was also better than the median estimate of 400k. The country’s unemployment rate declined to 4.6% while wages rose by about 4.9%. Meanwhile, the Canadian economy added 31k jobs in October after it added 157k in the previous month. Its unemployment rate also dropped to 6.7%.

EURUSD

The EURUSD pair has been in a major sell-off in the past few days. The pair declined to a low of 1.1530, which was the lowest level since October 11. On the four-hour chart, the pair moved below the 20-day moving average and the Ichimoku cloud. The Relative Strength Index (RSI) and the MACD have been in a downward trend as well. Therefore, the pair will likely keep falling in the coming days.

GBPUSD

The GBPUSD pair continued its downward trend in the past two days after the dovish Bank of England (BOE) decision. The pair declined to a low of 1.3423 and is currently moved below the short and long-term moving averages. The Relative Strength Index (RSI) has moved to the oversold level while the MACD has moved below the neutral level. Therefore, like the EUR/USD pair, it will keep falling.

USDCAD

The USDCAD pair rose to a high of 1.2472, which was the highest level since October 18. The pair managed to move above the key resistance level at 1.2435. It also rose above the 25-day moving average while the Relative Strength Index (RSI) kept rising. Therefore, the pair will likely keep rising as bulls target the next key resistance at 1.2500.